Infosys share price surges 5% post Q3 FY26 results; key points to take note of

The stock opened higher following the company's December quarter (Q3 FY26) earnings release on Wednesday, post-market hours.

On Thursday, the stock market was closed on account of municipal elections in Maharashtra.

Infosys on Wednesday reported a 2.2% decline in consolidated net profit to ₹6,654 crore in the October-December quarter of FY26 (Q3 FY26).

The Bengaluru-headquartered firm had registered a net profit (attributable to owners of the company) of ₹6,806 crore in the year-ago period.

Infosys' revenue from operations grew 8.89% to ₹45,479 crore compared to ₹41,764 crore in Q3 FY25.

On the quarter-on-quarter basis (Q2 FY26), its profit fell 9.6%, while revenue increased 2.2%.

"Infosys delivered a strong Q3 performance, demonstrating how our differentiated value propositions in enterprise AI, through Infosys Topaz, are consistently driving higher market share," the company said.

The company added that clients increasingly view Infosys as their AI partner with demonstrated expertise, innovation capabilities and strong delivery credentials.

"This has helped them unlock business potential and enhance value realisation," it said.

"Central to this journey is our commitment to reskill, transform and empower our dedicated human resource pool to drive success in an AI-augmented world," Infosys CEO and MD Salil Parekh said.

Infosys hit by new labour codes

Infosys reported a one-time exceptional hit of ₹1,289 crore on account of the impact of the implementation of new labour codes, as India's second-largest IT services firm announced its December quarter earnings.

Earlier this week, larger rival Tata Consultancy Services (TCS) said the implementation of the new labour codes during the quarter led to a "statutory impact" of ₹2,128 crore, while Noida-headquartered HCLTech made a one-time provision of $82 million (₹719 crore) for the implementation of new labour codes.

The company has raised its revenue growth guidance for FY26 to 3-3.5% in constant currency, from 2-3% earlier.

New labour codes: What you need to know

Infosys' earnings highlighted a significant development in its Q3 FY26 earnings, which was the impact of the government of India's notification regarding the Labour Codes on November 21, 2025.

These codes, which consolidate 29 existing labour laws, led to a substantial increase in the company's employee-related liabilities.

"These Labour Codes consolidate twenty-nine existing labour laws into a unified framework governing employee benefits during employment and post-employment and, amongst other things, introduce changes, including a uniform definition of wages and enhanced benefits relating to leave," Infosys said.

"The adjustments for labour codes represent an increase in gratuity liability arising out of past service cost and an increase in leave liability, together by $143 million (₹1,289 crore), which is recognised in the Consolidated Statement of Comprehensive Income," Infosys said in a regulatory filing.

Deal wins and other details

During the quarter, Infosys clocked a large deal TCV (Total Contract Value) of $4.8 billion, with 57% of it being net new.

The company also completed its largest-ever buyback of ₹18,000 crore and paid out an interim dividend during the period.

On the employee front, total headcount increased by 5,043 during the quarter to reach 3,37,034.