Stronger deal wins and revenue momentum drive highest payout of FY26 so far
Infosys has declared an average 85% performance bonus payout for the quarter ended December, delivering a morale boost as tech stocks wobble over fears that artificial intelligence could disrupt traditional IT services.
The payout, reported by The Economic Times, will be credited with the February salary, according to internal communication.
Higher Variable Pay Across the Board
Employee payouts ranged between 75% and 100% of target variable pay.
- Some staff received up to 15% more than the previous quarter.
- A few employees received the full 100% payout.
The average payout for the July–September quarter stood at 75%, making the December quarter’s 85% the strongest so far in FY26—and higher than any quarter in the previous financial year, according to a person aware of the matter.
For a workforce of roughly 323,000 employees, even incremental changes in variable pay signal meaningful shifts in company confidence.
Backed by Strong Business Momentum
The improved payout follows a quarter marked by steady revenue traction and deal wins.
In January, while announcing its third-quarter results, Infosys raised its revenue guidance, citing strong performance and a favourable demand environment.
At a town hall last month, Chief Human Resources Officer Shaji Mathew had already hinted that employees could expect better variable pay compared with earlier quarters.
The message was clear: performance is translating into payouts.
Appraisals Done, Hikes Awaited
Infosys completed its appraisal cycle for November 2024 to October 2025, releasing individual ratings in December.
Employees are now awaiting clarity on annual salary revisions.
Last year, salary revision letters were issued in February, with most employees receiving 5% to 8% hikes, depending on performance ratings. Many are watching for a similar timeline this year.
Will the stronger Q3 results translate into equally robust increments?
Market Volatility, Internal Stability
The bonus announcement comes as technology shares face volatility amid concerns that rapid AI advances could reshape demand for traditional IT services work.
Infosys shares closed at â‚ą1,369.10 as of February 13, 2026, down 8.65% over the past five days, with a 1-month range between â‚ą1,281.50 and â‚ą1,728.00.
Against that backdrop, the higher payout acts as a stabiliser.
Variable pay in IT often functions like a barometer—when it rises, it signals management confidence in deal pipelines and execution. In a sector navigating automation anxieties, that confidence matters.
For now, Infosys employees have tangible proof that strong quarterly performance still pays—literally.
TL;DR:
Infosys declared an average 85% Q3 bonus payout, up from 75% in the previous quarter and the highest in FY26 so far. Individual payouts ranged from 75% to 100%. The move follows strong revenue momentum and deal wins, offering morale support amid AI-driven market volatility.
