**Infosys Clarifies Revenue Guidance Excluding Telstra Acquisition**
Infosys management has clarified that its revenue growth guidance of 3-3.5% in constant currency does not account for revenue from its recent acquisition of Telstra’s Versent. In August, Infosys invested $150 million to acquire a 75% stake in Versent, which generated $138 million in revenue for the fiscal year ending June 2025. The company anticipates finalizing the acquisition in the latter half of the current fiscal year.
During a post-earnings call with analysts, CEO Salil Parekh stated, “Our strong performance year-to-date and significant deal wins have allowed us to revise our revenue guidance for FY ’26 upward to 3% to 3.5%. This figure does not include any revenues from the joint venture with Telstra, which is still pending regulatory approvals.”
Analysts suggest that Infosys may exceed expectations, with one predicting that its growth could align with that of HCL Technologies. Amit Chandra, vice-president at HDFC Securities, noted, “Infosys has historically been conservative in its guidance and often surpasses it. We anticipate an additional revenue contribution of at least 0.2% in FY26 from the Telstra acquisition.” Over the past 15 years, Infosys has outperformed its management’s full-year guidance in nine instances.
Another analyst, Sameer Pardikar from Elara Capital, emphasized the conservative nature of Infosys’s management. He mentioned that the projected revenue growth guidance for Q4 ranges from -1.7% to +0.2%, which he believes is achievable. Karan Uppal, lead analyst for IT services at Phillip Capital, added that if the Versent acquisition closes in January, Infosys could see an incremental contribution of $20-30 million, translating to a 0.1% to 0.2% increase in revenue.
Despite these optimistic projections, growth may pose challenges for Infosys. A recent analysis indicated that the company has experienced a sequential revenue decline of over 2% in the fourth quarter for the past three years, with a reported revenue of $4.73 billion for the January-March 2025 period, reflecting a 4.23% decline.
Nevertheless, analysts remain hopeful about Infosys’s performance. HCL Technologies is forecasting a growth rate of 4-4.5% in constant currency terms, similar to Infosys, and has also excluded revenues from its recent acquisitions, including the Telco Solutions Business from HPE, Jaspersoft, and Wobby.
**FAQ**
**Q: What is Infosys’s revenue growth guidance for FY ’26?**
A: Infosys has revised its revenue growth guidance for FY ’26 to 3-3.5% in constant currency, excluding revenue from its Telstra acquisition.
