Q2 Financial Highlights

Infosys posted Q2 revenues of $5,145 million, representing a 1.5% year‑on‑year increase and a 1.2% sequential rise in constant‑currency terms. Operating margin held steady at 21.0%, and basic earnings per share (EPS) were $0.20, a 0.3% decline YoY. Free cash flow (FCF) for the quarter was $928 million, equating to 113.3% of net profit, underscoring strong cash generation.

Six‑Month Performance

For the six months ended 30 September 2026, reported revenues reached $10,227 million, up 2.1% YoY, with operating margin again at 21.0%. Basic EPS for the half‑year was $0.40, a 1.7% YoY increase. Six‑month FCF stood at $1,883 million, 5.1% lower YoY, but still represented 114.9% of net profit.

AI Revenue Growth and Large Deal Pipeline

AI‑related services accounted for 10.5% of total revenue and expanded 29% quarter‑on‑quarter, reflecting Infosys’ differentiated AI‑first strategy. The company secured large‑deal total contract value (TCV) of $5.2 billion in Q2, with 62% classified as net‑new business, including a marquee deal exceeding $2 billion. Management highlighted that these wins reinforce Infosys’ position as a trusted partner for complex transformation programs.

Guidance, Dividend and Outlook

For fiscal year 2027, Infosys revised its revenue growth guidance to 1‑2% in constant currency while maintaining margin guidance of 20‑22%. The Board declared an interim dividend of ₹26 per share, a 13% increase over the prior year.

Cash Flow and Balance‑Sheet Position

Cash and cash equivalents rose to $2,541 million as of 30 September 2026, up from $2,341 million a quarter earlier. Total assets increased to $17,060 million, driven by higher current assets ($11,035 million) and non‑current assets ($6,025 million). Equity attributable to shareholders grew to $10,389 million, with non‑controlling interests of $56 million. Current liabilities were $5,590 million, and non‑current liabilities stood at $1,081 million.

Detailed Income‑Statement Metrics

  • Revenue: $5,145 million (Q2) vs $5,076 million (Q2 2025); $10,227 million (H1) vs $10,018 million (H1 2025).
  • Cost of sales: $3,547 million (Q2) vs $3,516 million (Q2 2025).
  • Gross profit: $1,598 million (Q2) vs $1,560 million (Q2 2025).
  • Operating expenses: Selling & marketing $260 million, administrative $259 million; total $519 million (Q2).
  • Operating profit: $1,079 million (Q2) vs $1,065 million (Q2 2025).
  • Other income, net of finance cost: $77 million (Q2) vs $100 million (Q2 2025).
  • Profit before tax: $1,156 million (Q2) vs $1,165 million (Q2 2025).
  • Income tax expense: $337 million (Q2) vs $325 million (Q2 2025).
  • Net profit (after non‑controlling interests): $817 million (Q2) vs $839 million (Q2 2025).
  • Basic and diluted EPS: $0.20 per share for the quarter.

Client Wins and Testimonials

Infosys announced several strategic collaborations:

  • Mondelez International: AI‑enabled supply‑chain transformation; senior executive Sanjay Gurbaxani praised the partnership for embedding intelligence into everyday decisions.
  • Crocs, Inc.: Ten‑year strategic agreement to accelerate IT transformation; CIO Tom Britt highlighted cost reduction and scalable growth.
  • Knorr‑Bremse: AI‑driven enterprise transformation; CDO Satheeskaran Navaratnam emphasized building a future‑ready technology foundation.
  • Metsä Group: Expanded AI‑led IT landscape transformation; CIO Kristiina Lammila noted efficiency gains.
  • NTN Corporation: SAP Commerce Cloud migration; Head Kenji Kitazato cited streamlined operations and agility.
  • Telia: AI‑powered network and cybersecurity modernization; Group CIO Hein Müskens highlighted efficiency and innovation.
  • KnitWell Group: AI‑powered customer‑engagement platform; CTO Jaap van Riel highlighted rapid solution development and results.
  • Investec: Selection of Infosys Finacle SaaS on Microsoft Azure for digital banking; Global Head Lyndon Subroyen highlighted a step‑change in digital transformation.

Recognitions & Awards

Infosys received numerous accolades across talent, sustainability, AI, cloud, and industry‑specific services, including:

  • Great Place to Work® “Best Employers Among Nation‑Builders” (sixth consecutive year).
  • Multiple Avtar & Seramount indices for women, inclusion, wellness, and ESG.
  • Three Brandon Hall Group HCM Excellence Awards for learning, senior‑manager development, and sourcing strategy.
  • Asset Corporate Sustainability Leadership Awards (four categories, including Platinum).
  • Leadership positions in Gartner Magic Quadrant (Public Cloud Optimization), IDC MarketScape (Cloud Professional Services, ServiceNow, Oracle, Digital Workplace), Everest Group PEAK Matrix (Azure, QE for AI, Digital Workplace, Retail Digital, GCC Setup), Constellation ShortList (AI Services, Cloud Transformation, Decision Intelligence), Forrester Wave (Infrastructure Outsourcing), NelsonHall NEAT (AI‑Enabled Cloud Infrastructure, Salesforce, SAP Ecosystem), and numerous sector‑specific recognitions in Oil & Gas, Pharma R&D, Life & Annuity Insurance, Trade Finance, and Retail Core Banking.

Forward‑Looking Statements

The release contains forward‑looking statements regarding future growth, margins, AI adoption, regulatory environments, talent acquisition, and other risks, subject to the usual cautions and detailed in Infosys’ Form 20‑F filing for FY 2026.