Earnings quality remains robust, evidenced by an OCF/NI ratio that peaked at 1.70 in 2025Q3, though free cash flow margins exhibit significant cyclicality ranging from 14.3% to 26.3%.
| Metric | Mar'26 | Mar'25 | Mar'24 | Mar'23 | Mar'22 | Mar'21 | Mar'20 | Mar'19 | Mar'18 | Mar'17 | Mar'16 | Mar'15 | Mar'14 | Mar'13 | Mar'12 | Mar'11 | Mar'10 | Mar'09 | Mar'08 | Mar'07 | Mar'06 | Mar'05 | Mar'04 | Mar'03 | Mar'02 | Mar'01 | Mar'00 | Mar'99 |
|---|
| Cash from Operations | 4.04B | 4.35B | 3.15B | 2.85B | 3.35B | 3.26B | 2.61B | 2.26B | 2.26B | 2.1B | 1.86B | 1.76B | 2B | 1.74B | 1.68B | 1.3B | 1.45B | 1.41B | 1.15B | 862M | 599M | 344M | 373.45M | 211.19M | 191.48M | 137.51M | 71.39M | 37.7M |
| Operating CF Margin % | 20.04% | 22.57% | 16.96% | 15.67% | 20.51% | 24.02% | 20.43% | 19.17% | 20.63% | 20.56% | 19.6% | 20.16% | 24.28% | 23.49% | 24.03% | 21.49% | 30.22% | 30.22% | 27.51% | 27.9% | 27.83% | 21.61% | 35.15% | 28.02% | 35.13% | 33.23% | 35.09% | 31.17% |
| Operating CF Growth % | -7.17% | 38.21% | 10.34% | -14.71% | 2.67% | 24.78% | 15.43% | 0.22% | 7.53% | 12.73% | 6.04% | -12.33% | 15.25% | 3.39% | 29.51% | -10.61% | 3.05% | 22.63% | 33.29% | 43.91% | 74.13% | -7.89% | 76.83% | 10.3% | 39.24% | 92.62% | 89.37% | - |
| Net Income | 3.32B | 3.16B | 3.17B | 2.98B | 2.97B | 2.62B | 2.34B | 2.2B | 2.49B | 2.14B | 2.05B | 2.01B | 1.75B | 1.73B | 1.72B | 1.5B | 1.31B | 1.28B | 1.16B | 850M | 555M | 419M | 270.29M | 194.87M | 164.47M | 131.95M | 61.34M | 17.4M |
| Depreciation & Amortization | 552M | 569M | 565M | 524M | 466M | 441M | 407M | 287M | 289M | 254M | 222M | 175M | 226M | 207M | 195M | 189M | 199M | 165M | 157M | 118M | 99M | 66M | 55.09M | 44.19M | 38.62M | 29.61M | 17.39M | 25.1M |
| Stock-Based Compensation | 108M | 95M | 79M | 64M | 56M | 45M | 34M | 29M | 13M | 17M | 1M | 0 | 0 | 0 | 0 | 0 | 0 | 1M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 1.19B | 1.28B | 1.18B | 1.14B | 1.07B | 973M | 757M | 803M | 657M | 834M | 799M | 805M | 668M | 617M | 694M | 547M | 0 | 0 | -50M | -6M | -5M | -3M | 809.3K | -2.42M | -2M | -769.3K | -850.89K | -600K |
| Other Non-Cash Items | -868M | -690M | -1.22B | -1.06B | -1.05B | -910M | -653M | -972M | -1.17B | -856M | -868M | -1.05B | -617M | -611M | -656M | -648M | -49M | -3M | 3M | 4M | 4M | -11M | 2.19M | 3.22M | -16.75K | 3.46M | -20.15K | -1M |
| Working Capital Changes | -259M | -70M | -623M | -804M | -158M | 86M | -272M | -85M | -17M | -290M | -344M | -184M | -25M | -200M | -268M | -289M | -11M | -35M | -116M | -104M | -54M | -127M | 45.07M | -28.67M | -9.59M | -26.74M | -6.47M | -3.2M |
| Change in Receivables | -583M | -209M | -322M | -875M | -1.06B | -248M | -542M | -411M | -237M | -260M | -252M | -246M | -294M | -275M | -378M | -342M | 22M | -139M | -247M | -208M | -65M | -150M | -27.43M | -53.09M | -7.2M | -33.71M | -11.18M | -10.1M |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | -3M | 21M | 11M | -35M | 200M | -33M | -52M | 131M | 51M | -3M | 37M | -3M | 5M | 23M | -5M | 7M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | 10M | -361M | -708M | -218M | -1B | -1.13B | -242M | -225M | 482M | -2.55B | -474M | -205M | -823M | -927M | -429M | 490M | -925M | -290M | -423M | -334M | -148M | -248M | -304.66M | -53.94M | -75.76M | -106.69M | -45.73M | -17M |
| Capital Expenditures | -306M | -263M | -266M | -319M | -290M | -285M | -465M | -349M | -310M | -411M | -413M | -367M | -451M | -384M | -301M | -285M | -138M | -285M | -374M | -339M | -246M | -186M | -93.23M | -43.16M | -68.35M | -96.78M | -35.93M | -16.1M |
| CapEx % of Revenue | 1.52% | 1.36% | 1.43% | 1.75% | 1.78% | 2.1% | 3.64% | 2.96% | 2.83% | 4.03% | 4.35% | 4.21% | 5.47% | 5.19% | 4.3% | 4.72% | 2.87% | 6.11% | 8.96% | 10.97% | 11.43% | 11.68% | 8.77% | 5.73% | 12.54% | 23.38% | 17.66% | 13.31% |
| Acquisitions | -77M | -377M | -12M | -113M | 0 | -165M | -253M | -110M | -9M | -5M | -117M | -221M | 0 | -213M | -41M | 0 | -37M | -3M | -32M | -148M | 0 | 0 | -10.38M | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 75M | 61M | 110M | 92M | 88M | 22M | 81M | 41M | 51M | 11M | -7M | -23M | -8M | -15M | -41M | -449M | -3M | -18M | -6M | -9M | -6M | -13M | 4.27M | -10.73M | -5.21M | -4.04M | -6.8M | -900K |
| Cash from Financing | -4.49B | -2.88B | -2.12B | -3.29B | -3.33B | -1.32B | -2.51B | -2.07B | -3.2B | -1.03B | -1.06B | -815M | -519M | -583M | -500M | -811M | -310M | -545M | -186M | -55M | 37M | -123M | -9.83M | -21.11M | -21.94M | -8.81M | -2.9M | 64.8M |
| Debt Issued (Net) | -318M | -396M | -245M | -151M | -125M | -94M | -80M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 900K |
| Equity Issued (Net) | -2.01B | 709.67K | 603.92K | -1.39B | -1.5B | 2.02M | -1.07B | -118M | -2.04B | 0 | 0 | 0 | 0 | -16M | 1.25M | 5.27M | 20M | 14M | 17M | 277M | 128M | 99M | 37.35M | 12.81M | 963.35K | 511.39K | 406.86K | 66.3M |
| Dividends Paid | -2.13B | -2.42B | -1.78B | -1.7B | -1.7B | -1.23B | -1.36B | -1.96B | -1.16B | -1.03B | -1.06B | -815M | -519M | -568M | -501M | -699M | -330M | -559M | -209M | -336M | -91M | -222M | -47.18M | -33.91M | -22.9M | -9.32M | -2.53M | -2.4M |
| Share Repurchases | -2.01B | 0 | 0 | -1.4B | -1.5B | 0 | -1.07B | -118M | -2.04B | 0 | 0 | 0 | 0 | -16M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -28M | -63.71M | -94.6M | -46M | 4M | 979.39K | -4M | 1M | 1M | 0 | 0 | 0 | 0 | 1M | -252.67K | -117.27M | 0 | 0 | 6M | 4M | 0 | 0 | 0 | 0 | 0 | 0 | -777.92K | 0 |
| Net Change in Cash | -520M | 1.09B | 292M | -824M | -1.07B | 915M | -364M | -220M | -440M | -1.45B | 76M | 528M | 310M | -26M | 310M | 1.04B | 531M | 109M | 655M | 514M | 479M | -35M | 90.19M | 143.88M | 86.4M | 7.48M | 17.72M | 83.5M |
| Free Cash Flow | 3.73B | 4.09B | 2.88B | 2.53B | 3.06B | 2.97B | 2.15B | 1.91B | 1.95B | 1.69B | 1.45B | 1.39B | 1.55B | 1.35B | 1.36B | 1.01B | 1.31B | 1.12B | 775M | 523M | 353M | 158M | 280.23M | 168.03M | 123.13M | 40.74M | 35.46M | 21.6M |
| FCF Margin % | 18.52% | 21.21% | 15.53% | 13.91% | 18.73% | 21.92% | 16.79% | 16.21% | 17.8% | 16.54% | 15.25% | 15.95% | 18.81% | 18.3% | 19.46% | 16.77% | 27.35% | 24.1% | 18.56% | 16.93% | 16.4% | 9.92% | 26.37% | 22.29% | 22.59% | 9.84% | 17.43% | 17.86% |
| FCF Growth % | -8.68% | 41.85% | 13.73% | -17.05% | 2.76% | 38.54% | 12.18% | -1.75% | 15.34% | 16.49% | 4.32% | -10.5% | 14.62% | -0.51% | 34.35% | -22.91% | 16.9% | 45.03% | 48.18% | 48.16% | 123.42% | -43.62% | 66.77% | 36.47% | 202.25% | 14.87% | 64.19% | - |
| FCF per Share | 0.93 | 0.98 | 0.70 | 0.61 | 0.72 | 0.70 | 0.50 | 0.44 | 0.43 | 0.37 | 0.32 | 0.30 | 0.34 | 0.30 | 0.30 | 0.22 | 0.29 | 0.25 | 0.17 | 0.12 | 0.08 | 0.04 | 0.07 | 0.04 | 0.03 | 0.01 | 0.01 | 0.01 |
| FCF Conversion (FCF/Net Income) | 1.22x | 1.38x | 0.99x | 0.96x | 1.13x | 1.25x | 1.12x | 1.03x | 0.91x | 0.98x | 0.91x | 0.87x | 1.14x | 1.01x | 0.98x | 0.87x | 1.11x | 1.10x | 0.99x | 1.01x | 1.08x | 0.82x | 1.38x | 1.08x | 1.16x | 1.04x | 1.16x | 2.17x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Discretionary spending volatility
According to recent financial disclosures, Infosys consistently demonstrates high-quality earnings, with the OCF/NI ratio frequently exceeding 1.0, peaking at 1.70 in 2025Q3, which suggests that the firm's reported net income is well-supported by actual cash inflows rather than aggressive accounting accruals or non-cash adjustments.
The consistent ability to generate operating cash flow in excess of net income indicates a conservative approach to revenue recognition and effective management of non-cash expenses. Investors should monitor whether this conversion efficiency persists as the firm shifts toward larger, more complex contract structures that may lengthen billing cycles.
As reported in quarterly filings, free cash flow margins have exhibited significant volatility, ranging from 14.3% to 26.3% over the last ten quarters, reflecting the firm's sensitivity to project-based revenue cycles and the timing of large-scale digital transformation investments within its core North American client base.
The fluctuation in FCF margins appears tied to the discretionary nature of the firm's consulting-led projects, which can lead to lumpy cash generation. While the overall trajectory remains positive, the variance suggests that cash flow predictability is inherently linked to the broader macroeconomic environment and client spending patterns.
Based on the provided cash flow statements, working capital changes have been highly erratic, swinging from a $220 million outflow in 2024Q3 to a $101 million inflow in 2026Q3, indicating that the firm's cash position is frequently influenced by the timing of client collections and milestone-based billing.
This volatility in working capital suggests that the firm's cash flow is susceptible to client payment delays, which may be exacerbated by the current focus on mega-deals. Analysts should investigate whether these swings represent structural shifts in contract terms or merely temporary timing differences in project delivery.
As evidenced by historical cash flow data, Infosys maintains a shareholder-friendly capital allocation policy, frequently returning significant portions of free cash flow through dividends, such as the $1.1 billion payout in 2026Q1, while keeping net debt levels minimal to preserve its fortress balance sheet position.
The firm's commitment to returning capital suggests management's confidence in its underlying cash generation capabilities despite the cyclical nature of the IT services industry. However, the limited use of cash for strategic acquisitions may warrant further investigation into whether the firm is missing opportunities to scale its AI-first capabilities.
Quick answers to the most common questions about buying INFY stock.
Infosys Limited (INFY) generated $4.04B in net cash from operating activities in 2026. This reflects the cash generated directly from core business operations.
Infosys Limited (INFY) generated $3.73B in free cash flow in 2026. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Infosys Limited (INFY) spent $306.0M on capital expenditures in 2026. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2026, Infosys Limited (INFY) returned $2.13B to shareholders via cash dividends and spent $2.01B on share repurchases. This shows the company's commitment to returning capital to its equity investors.