American Noble Gas (NYSE:INFY) management highlighted what it described as a “strong performance” for the third quarter of fiscal 2026, pointing to modest revenue growth in constant currency, robust large-deal signings, and expanding activity around artificial intelligence (AI) and enterprise agents. The company also raised its full-year revenue growth guidance in constant currency terms while keeping its operating margin outlook unchanged.
Quarterly performance and updated outlook
CEO and Managing Director Salil Parekh said revenue grew 0.6% sequentially and 1.7% year-over-year in constant currency terms. CFO Jayesh Sanghrajka reported revenue of $5.1 billion for the quarter.
Following the quarter’s performance, Parekh said the company revised its FY26 constant-currency revenue guidance upward to 3%–3.5% growth. Operating margin guidance was maintained at 20%–22%. Sanghrajka added that the revised guidance does not include any revenue from the company’s joint venture with Telstra because regulatory approvals are still pending.
Large deals, cash flow, and shareholder returns
Management emphasized large-deal momentum. Parekh said large deals totaled $4.8 billion in Q3, with 57% net new, across 26 deals. Sanghrajka said total large-deal TCV for the first nine months was $11.7 billion, exceeding the full-year FY25 total, and that net new deal TCV over the nine-month period was up 40% compared with the same period last year.
One of the most significant deals cited was a $1.6 billion engagement with the National Health Service (NHS) in the UK. Parekh said the work expands the company’s healthcare presence and will help NHS leverage AI to streamline operations and improve patient care.
Sanghrajka also discussed cash generation and capital return. Adjusted free cash flow (excluding the labor code impact) was $965 million, which he said equated to 113% of adjusted net profit. He said adjusted free cash flow conversion for nine months stood at 118%. The company ended the quarter with $3.9 billion in consolidated cash and investments after returning $3 billion to shareholders via dividends and buybacks.
During the quarter, Sanghrajka said the company completed its largest-ever buyback, returning INR 18,000 crores to shareholders, and paid an interim dividend for FY26 consistent with its capital allocation policy.
AI strategy: Topaz, agents, and “six value pools”
Parekh framed AI as a central growth driver, stating the company is seeing “strong momentum” in AI adoption. He said the firm works with 90% of its 200 largest clients on AI initiatives, is currently executing 4,600 AI projects, and that teams have generated over 28 million lines of code using AI while building over 500 agents.
As part of its offerings, Parekh said the company has expanded its Topaz AI capabilities with an “agent services suite” called Topaz Fabric, designed to help clients manage and implement AI agents across the enterprise. He also noted an expansion of strategic partnerships with AI companies, including a recently announced collaboration with Cognition that pairs Cognition’s Devin software agent with the company’s client and industry expertise.
Parekh said the company is seeing six “AI-led value pools” that could represent incremental opportunity, while also acknowledging productivity-driven benefits may compress some legacy areas. He listed the six value pools as:
- AI engineering services
- Data for AI
- Agents for operations
- AI software development and legacy modernization
- AI and physical devices
- AI services
Management said it plans to provide a more comprehensive view of its approach at an investor day later in the quarter. Parekh also addressed questions on whether AI activity could pressure pricing or margins, with Sanghrajka stating pricing has been “accretive” and that the company does not see AI projects as a pricing headwind. He added that new pricing approaches—such as how to price agents and platforms—are still emerging.
Vertical and regional demand trends
Executives pointed to differing conditions across industries. Sanghrajka said financial services continued to show momentum, with 3.9% year-over-year growth in constant currency terms, and described increased discretionary demand across banking, payments, mortgages, and wealth management. He said clients are shifting “from compliance to business growth” and are showing elevated interest in AI-led transformation, modernization, and vendor consolidation.
Parekh said the company expects acceleration in FY27 versus FY26 specifically in financial services and in the energy, utilities, resources, and services verticals, citing deal wins and its AI partner status with 15 of its largest 25 clients in those verticals. On the earnings call, management clarified that it was not providing an overall companywide FY27 growth outlook at this stage.
In manufacturing, Sanghrajka cited tariff uncertainties and slow decision-making, while Parekh said automotive remains weak even as some manufacturing activity benefits from data-center buildouts tied to the AI boom. In retail and CPG, management cited uncertainty driven by tariff negotiations and geopolitical dynamics, with clients prioritizing cost takeouts and AI-led productivity. The communication sector was also described as impacted by geopolitical uncertainty, though management said prior deal wins have supported year-over-year growth acceleration in recent quarters.
Regionally, Sanghrajka said Europe led growth with 7.2% year-over-year growth in constant currency terms. He also noted volumes remained soft, utilization declined sequentially, and the company increased capacity for future growth opportunities.
Looking ahead, management emphasized continued investment in sales and marketing, talent, and AI capabilities, while pointing to seasonal headwinds such as lower working days in the fourth quarter that factor into guidance. Sanghrajka also said the recurring impact of the India labor code change would be approximately 15 basis points on an ongoing basis, assuming no further regulatory changes.
About American Noble Gas (NYSE:INFY)
Infosys Ltd. is a digital services and consulting company, which engages in the provision of end-to-end business solutions. It operates through the following segments: Financial Services, Retail, Communication, Energy, Utilities, Resources, and Services, Manufacturing, Hi-Tech, Life Sciences, and All Other. The company was founded by Dinesh Krishnan Swamy, Senapathy Gopalakrishnan, Narayana Ramarao Nagavara Murthy, Raghavan N. S., Ashok Arora, Nandan M. Nilekani, and S. D. Shibulal on July 2, 1981 and is headquartered in Bangalore, India.
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