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Cash conversion remains high with OCF/NI of 1.28 in 2027Q1 and FCF margin of 19.1%, while cumulative OCF ($10.5B) exceeded net income ($8.2B) over the last ten quarters, supporting a ~60% FCF payout ratio.
Infosys Limited (INFY) cash flow statement — 28-year operating, investing & financing cash flows
| Metric | TTM | 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 | 4.11B | 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 % | -1.63% | -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 | 3.32B | 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 | 550.59M | 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 | 80M | 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 | 861M | 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 | -511.77M | -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 | -199.32M | -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 | -267.5M | -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 | 0 |
| Change in Payables | 36.61M | -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 | -337.48M | 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 | -288.95M | -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 | 1.42% | 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 | -343.32M | -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 | 41.54M | 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 | -4.59B | -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) | -335M | -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 | -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 | -2.14B | -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 | -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 | -111.93M | -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 | -1.25B | -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 | 3.82B | 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 % | 18.82% | 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 % | -3.07% | -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 | 0.93 | 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) | 1.15x | 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 | 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 | 0 |
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.
Key Metrics
Top Statement Risk
AI-driven margin compression risk
Cash Conversion Remains Solid Despite Volatility
Infosys's operating cash flow to net income ratio averaged 1.2 over the last ten quarters, with a low of 0.95 in 2024Q4, indicating generally high earnings quality, per reported financials.
The OCF/NI ratio has been consistently above 1.0 except for one quarter, suggesting that net income is well-backed by cash generation. The 2024Q4 dip to 0.95 appears to be an anomaly, possibly due to working capital timing, but the subsequent quarters show recovery. This stability in conversion supports the reliability of reported earnings, though investors should monitor any sustained decline below 1.0.
Free Cash Flow Growth Mirrors Revenue Stability
Free cash flow margins have ranged from 16.5% to 26.3% over the past ten quarters, with the latest at 19.1%, according to quarterly cash flow statements. This suggests a stable but not accelerating cash generation profile.
The FCF margin has been relatively stable, with occasional spikes like 26.3% in 2025Q3, likely due to favorable working capital movements. The latest quarter's 19.1% is in line with the historical average, indicating that cash generation is keeping pace with revenue growth. However, the lack of a clear upward trend suggests that the company is not yet seeing the benefits of AI-driven efficiency gains in its cash flows.
Capital Intensity Remains Low, Reflecting Asset-Light Model
Capital expenditure as a percentage of revenue has stayed below 2.1% across the last ten quarters, with the latest at 1.6%, as per cash flow data. This underscores the asset-light nature of Infosys's IT services model.
The low capex intensity is typical for IT services, where the primary investments are in human capital and software, not physical assets. The slight uptick in 2026Q4 to 2.1% may indicate investments in AI infrastructure or office facilities, but it remains modest. This suggests that maintenance capex is minimal, and most capex is growth-oriented, supporting the company's ability to return cash to shareholders.
Working Capital Fluctuations Drive Quarterly Cash Flow Variability
Working capital changes have swung from -$159M to +$101M over the last ten quarters, as reported in cash flow statements, indicating significant quarter-to-quarter volatility in cash conversion.
The variability in working capital is a key driver of the quarterly OCF fluctuations, with negative changes (cash outflows) in most quarters. This could be due to timing of collections and payments, but the consistent negative trend in recent quarters (e.g., -$66M in 2027Q1) may indicate a structural shift in payment terms or client behavior. Investors should monitor whether this becomes a persistent drag on cash flow.
Shareholder Returns Outpace Cash Generation in Some Quarters
Dividends and buybacks have totaled over $5.5 billion in the last ten quarters, while free cash flow was approximately $9.6 billion, according to cash flow data. This indicates a payout ratio near 60% of FCF.
The company has consistently returned a significant portion of its free cash flow to shareholders, with dividends being the primary vehicle. In 2027Q1, dividends of $1.1B exceeded FCF of $970M, suggesting the company is using its cash reserves to fund returns. This is sustainable given the strong balance sheet, but investors should watch for any reduction in returns if cash generation slows.
Cumulative Cash Generation Exceeds Net Income
Over the last ten quarters, cumulative operating cash flow of $10.5B surpassed cumulative net income of $8.2B, as per financial statements. This indicates a high-quality earnings stream with minimal accruals.
The cumulative OCF exceeding net income by over $2.3B suggests that earnings are not being inflated by non-cash items or aggressive revenue recognition. This is a positive signal for earnings quality, especially in an industry where percentage-of-completion accounting can introduce estimation risk. The consistency of this gap across quarters reinforces the reliability of Infosys's reported profitability.
What Could Invalidate the Base Case
Despite strong cash conversion, the cash flow statement may obscure the impact of AI-driven productivity gains on billable hours, potentially pressuring future cash generation, as suggested by industry trends.
The reported cash flows do not separately disclose the effects of AI automation on delivery costs or pricing. If clients capture productivity gains through lower contract pricing, operating cash flow could decelerate even if net income remains stable. Additionally, the increasing use of mega-deals may involve transition costs that temporarily depress cash flow, warranting close monitoring of working capital and margin trends.