Infosys Downplays US Green-Card Suspension as Margin Risk Looms
Infosys said the US Labor Department's suspension of green-card applications for eight companies should not have a material impact. The company's North America revenue share has declined, and existing H-1B visas remain valid, so the immediate visa risk is limited. The larger concern is potential pressure on operating margins if US policy pushes these firms toward more local hiring, with Infosys's October 23 results a key test.
Infosys’s North America segment produced $11.3 billion of its $20.2 billion fiscal 2026 revenue, or 56%, down from 62% in fiscal 2023. Total revenue grew 11% while North America barely changed, so most net growth came elsewhere. Its operating margin was 21.2% in the June quarter, after staying between 20.8% and 21.3% in seven of eight quarters.
The Labor Department action covers eight companies and halts new PERM filings and pending processing, though existing H-1B visas remain valid. TCS said it submitted fewer than ten PERM requests across the prior two years. HCLTech reports October 12; Infosys reports October 23, when margin guidance may draw scrutiny.
The suspension may create uncertainty for employees at the named firms who depend on PERM for permanent residency. If US policy encourages more local hiring, companies could face higher staffing costs, potentially affecting project pricing, hiring plans, and investors. The October results may show whether such pressure is emerging, with implications for tech workers and clients relying on these firms.