Infosys Hiring Surge Signals Strong Demand, Lifts FY26 Outlook
Overview
Infosys Ltd. added 5,043 employees in Q3 FY26, marking its largest headcount increase in 11 quarters, underscoring management's confidence in improving market demand. The IT services giant also raised its FY26 constant-currency revenue growth guidance to 3-3.5%, signaling a positive outlook amid robust deal wins.
Infosys Ltd. reported its highest net headcount addition in eleven quarters, onboarding 5,043 employees in the third quarter of FY26. This expansion brings the total workforce to 337,034, signaling a strategic shift amidst evolving market dynamics. The IT services giant's move contrasts with rivals like Tata Consultancy Services (TCS), which have reported workforce reductions.
Demand Signals Strengthen
Management attributed the hiring surge to a growing confidence in market demand. "Headcount increase shows confidence in where the market is at with respect to demand," Infosys stated. The company further noted that approximately 20,000 fresh graduates were onboarded throughout the year, contributing significantly to the recent workforce expansion. Detailed hiring plans for the upcoming fiscal year will be disclosed at the commencement of FY27.
Attrition and Workforce Composition
Employee attrition in the IT services sector continued its downward trend, falling to 12.3% from 14.3% in the previous quarter. The proportion of women employees remained steady at 39.5%, reflecting a consistent focus on workforce diversity.
Revised Growth Outlook
Following its third-quarter results, announced after market close, Infosys raised its constant-currency revenue growth guidance for FY26 to a range of 3% to 3.5%, up from the previously projected 2% to 3%. The company maintained its Earnings Before Interest and Taxes (EBIT) margin guidance between 20% and 22%. This optimistic revision is supported by significant deal wins totaling $4.8 billion, with 57% derived from net new agreements, further reinforcing the positive demand outlook.
