Infosys, India’s second-largest IT services company, has reported that artificial intelligence (AI) services now account for a significant portion of its earnings. In the third quarter of the 2026 fiscal year, ending December 31, 2025, AI-focused work contributed 5.5% to the company’s total revenue. This milestone highlights how generative AI is moving beyond experimental phases and beginning to generate substantial income for major tech firms.
According to Infosys CEO Salil Parekh, the 5.5% share translates to approximately $275 million in revenue for the quarter. Parekh noted that this figure represents a robust pace of growth for the segment, which was “very small” just a few quarters prior. The disclosure comes amidst broader market concerns that AI investments might take too long to yield profitable returns for IT service providers. By releasing these specific figures, Infosys aims to reassure investors that client demand for AI is translating into actual deal flow and billable projects.
Strategic Partnership with Anthropic
To further strengthen its capabilities, Infosys has announced a strategic collaboration with AI safety and research company Anthropic. This partnership will focus on integrating Anthropic’s Claude 3.5 Sonnet and Claude 3.5 Haiku models into the Infosys Topaz platform. Topaz is the company’s existing suite of services, platforms, and solutions designed to help clients adopt generative AI technologies.
The collaboration specifically targets “agentic AI” solutions—systems that can autonomously perform tasks and make decisions. These tools are being designed for highly regulated industries such as banking, healthcare, and retail, where data accuracy and compliance are critical. By using Anthropic’s models, Infosys intends to build enterprise-grade AI agents that can automate complex workflows while maintaining high standards of safety and reliability.
Market Context and Investor Sentiment
The announcement of these revenue figures and the new partnership arrives shortly after a sharp selloff in Indian IT stocks. Investors had expressed anxiety following Cognizant’s weak revenue forecast, which sparked fears that AI was disrupting traditional IT services faster than companies could adapt. The Nifty IT index fell significantly in response to these sector-wide concerns.
However, industry leaders argue that the shift to AI is an opportunity rather than a threat. Parekh stated that generative AI is actually expanding the total addressable market for IT services. He emphasized that as clients integrate these technologies, they require substantial support for data management, cloud migration, and system integration.
Future Outlook for Enterprise AI
Infosys is positioning itself to capture this expanding market by embedding AI into its core service offerings. The company is working with major cloud providers like AWS, Google Cloud, and Microsoft Azure to deliver these solutions. The partnership with Anthropic allows Infosys to offer clients early access to advanced AI models, facilitating faster innovation and prototyping.
As enterprises move from pilot programs to full-scale production, the demand for specialized AI services is expected to grow. Infosys’s recent financial data suggests that this transition is already underway, with AI services becoming a distinct and measurable revenue stream.
