With continued global uncertainty and discretionary spending still tight, Infosys reduced its revenue guidance for FY27. The company has guided for revenue growth of 1 per cent to 2 per cent, down from the earlier 1.5 per cent to 3 per cent for FY27. The company's performance was a mixed bag, with large deal wins, but revenue continued to be soft.
For the second quarter ended September 30, 2026, Infosys reported a 6.2 per cent growth in net profit to ₹7,823 crore on a year-on-year basis. Sequentially, profit grew marginally by 0.7 per cent.
Revenue was up 10.7 per cent YoY to ₹49,244 crore, led largely by life sciences and energy, utilities, resources and services. In terms of geography, North America declined by 1.6 per cent YoY and 1.5 per cent in constant currency. Europe grew 3.9 per cent. The rest of the world grew by 15 per cent on a YoY basis.
In constant currency, revenue growth was 1.2 per cent QoQ and 1.5 per cent YoY.
The company’s performance missed Bloomberg analysts' estimates on profit but beat estimates on revenue. Bloomberg had estimated revenue at ₹49,107.9 crore and net profit at ₹7,904 crore.
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“We had strong large deals of $5.2 billion, including a mega deal of over $2 billion, reinforcing our position as a trusted partner in the marketplace when clients embark on large and complex transformation programmes. Our AI revenue was at 10.5% and grew 29% quarter-on-quarter. As enterprises move to AI adoption at scale, the strong growth in AI revenues is a recognition of our differentiated market positioning and client confidence,” said Salil Parekh, CEO and MD.
He further added, “We are advising some of the largest global enterprises on their AI strategy and continue to invest in deep domain and technology capabilities to bring new ideas and an integrated ecosystem to help businesses unlock AI value at scale.”
Infosys reported a large deal total contract value (TCV) of $5.2 billion, of which 62 per cent was net new. In Q1 FY27, TCV was at $3.6 billion.
“We delivered operating margins of 21.0% in Q2 amidst heightened volatility. Focus on cost and operational efficiency measures while making the required investments has led to stable margins,” said Jayesh Sanghrajka, CFO. “Free cash flow of $928 million, representing 113.3% of net profit, underscores the financial strength of the business. The Board has announced an interim dividend of ₹26 per share, an increase of 13% from last year,” he added.
Infosys' headcount at the end of the second quarter of FY27 was 332,542. The company added 4,480 employees compared with Q1 FY27. Attrition for the quarter was at 12.7 per cent.