Benefiting from a recovery in technology demand from financial services clients, Infosys (INFY), India's second-largest IT services provider, reported quarterly results on Wednesday, with its third-quarter revenue surpassing market expectations. For the quarter spanning October to December 2025, the company's revenue grew 8.9% year-over-year to 4547.9 billion Indian rupees (approximately $50.4 billion). Data from LSEG showed that analysts had, on average, expected revenue of 4522.7 billion rupees for the quarter. Infosys raised its revenue growth forecast range for fiscal year 2026 to 3%-3.5%, up from the previous guidance of 2%-3%. Previously, three brokerages had predicted the company would narrow its growth range to 2.5%-3%. Breaking down the performance by segment, the financial services division, which accounts for nearly one-third of total revenue, saw a 3.9% year-over-year increase, while the communications segment led growth across all business lines with a 9.9% surge. Infosys also secured multiple deals driven by artificial intelligence technology, with partners including software giant Adobe and Germany's large industrial conglomerate Siemens. Last month, industry leader Accenture also reported first-quarter revenue that exceeded Wall Street expectations, driven by strong demand for AI-powered IT services. However, Infosys's net profit for the quarter declined 2.2% year-over-year to 66.54 billion rupees, falling short of the average analyst estimate of 73.79 billion rupees compiled by LSEG. The decline in net profit was impacted by a one-time factor—new labor regulations enacted by the Indian government in November 2025, which resulted in related expenses of 12.89 billion rupees for the company. During the quarter, the total value of Infosys's large deals (individual deals exceeding $30 million) reached $4.8 billion, significantly higher than the $3.1 billion in the previous quarter and $2.5 billion in the same period last year. Among these, the company also secured a collaborative deal worth $1.6 billion with the UK's National Health Service (NHS). On Monday, buoyed by AI demand, Infosys's peers Tata Consultancy Services (TCS) and HCLTech also reported revenue that exceeded expectations.