Infosys reported consolidated net profit of ₹7,823 crore for the second quarter of fiscal 2026–27, an increase of 6.2% from ₹7,364 crore in the same quarter last year. Revenue from operations rose 10.7% year-on-year to ₹49,244 crore, compared with ₹44,490 crore in Q2 FY26, as demand improved in sectors including energy and utilities and clients increased spending on artificial intelligence services.
However, the results came with a more cautious outlook. Infosys lowered its full-year FY27 revenue growth guidance to 1%–2% in constant-currency terms, from its previous range of 1.5%–3%. The company reported operating margins of 21%, announced an interim dividend of ₹26 per share and recorded $5.2 billion in large deal wins. The combination of stronger quarterly revenue, continued AI growth and reduced annual guidance highlights the mixed operating environment facing India’s IT services industry. Reuters
Key Takeaways
- Net profit: Increased 6.2% year-on-year to ₹7,823 crore.
- Revenue: Grew 10.7% to ₹49,244 crore from ₹44,490 crore.
- Operating margin: Remained at 21%, according to the company’s results commentary.
- FY27 guidance: Revenue growth outlook was reduced to 1%–2% in constant-currency terms.
- Large deals: Deal wins reached $5.2 billion, up from $3.1 billion a year earlier.
- AI business: AI revenue accounted for 10.5% of revenue and grew 29% quarter-on-quarter, according to management.
- Dividend: The board announced an interim dividend of ₹26 per share, with November 3, 2026, set as the record date.
Infosys Q2 FY27 Results: Quarterly and Annual Comparison
The following table compares Infosys’ reported Q2 FY27 performance with the corresponding quarter in FY26.
| Financial metric | Q2 FY27 | Q2 FY26 | Year-on-year change |
|---|---|---|---|
| Revenue from operations | ₹49,244 crore | ₹44,490 crore | +10.7% |
| Consolidated net profit | ₹7,823 crore | ₹7,364 crore | +6.2% |
| Operating margin | 21.0% | — | Company reported stable margins |
| Large deal wins | $5.2 billion | $3.1 billion | Higher than last year |
| AI revenue growth | +29% quarter-on-quarter | — | Sequential growth |
| FY27 revenue growth guidance | 1%–2% | Previous guidance: 1.5%–3% | Guidance reduced |
Note: Constant-currency growth adjusts for the impact of exchange-rate movements. A dash indicates that a comparable figure is not included in the cited results summary.
Revenue increased by ₹4,754 crore compared with the year-ago quarter, while net profit rose by ₹459 crore. The difference between the growth rates shows that revenue expanded faster than profit, making margins, operating costs and the mix of services important factors to monitor.
Revenue Growth Reflects Demand Across Key Sectors
Infosys’ quarterly revenue increased to ₹49,244 crore, narrowly exceeding the average analyst estimate of ₹49,132 crore compiled by LSEG, according to Reuters.
The company benefited from improved demand from energy and utility clients. Revenue from its energy business, its third-largest revenue contributor, grew 7.3% year-on-year on a constant-currency basis.
Overall constant-currency revenue growth was 1.5%, demonstrating why reported revenue growth and underlying business growth should not be treated as interchangeable. Reported revenue is affected by exchange rates, while constant-currency figures attempt to show how the business performed without those movements.
The results suggest that demand remains uneven across the IT services market. Some clients are continuing large technology transformation projects, while others remain cautious about spending and increasingly expect measurable productivity improvements from technology investments.
Net Profit Rises 6.2% to ₹7,823 Crore
Infosys’ consolidated net profit increased from ₹7,364 crore in Q2 FY26 to ₹7,823 crore in Q2 FY27. Although the company remained profitable and recorded year-on-year growth, its profit was below the ₹7,929 crore average analyst estimate reported by Reuters.
The gap between revenue growth and profit growth matters because it can indicate that additional sales are not translating into profit at the same rate. However, a complete explanation requires examining expenses, service mix, currency effects, taxes and other items in the detailed financial statements.
For investors, the key question is whether Infosys can maintain profit growth while investing in AI capabilities and managing costs. Its reported operating margin of 21% suggests stability during the quarter, but future results will depend on demand, utilization, pricing and operational efficiency.
Operating Margin Remains at 21%
Infosys reported an operating margin of 21% in Q2 FY27. Chief Financial Officer Jayesh Sanghrajka attributed the stability to cost and operational-efficiency measures alongside continued investment.
Operating margin measures the proportion of revenue remaining after operating expenses, before interest and taxes. For a services company, it is influenced by employee costs, utilization, pricing, subcontracting, currency movements and the mix of projects.
Maintaining margins while pursuing growth can be challenging when customers demand lower costs or expect AI to increase productivity. Infosys must balance efficiency improvements with spending on technology, employee capabilities and new service offerings.
The company retained its FY27 operating-margin guidance of 20%–22%, according to its results commentary. This range provides a benchmark for assessing whether the company can protect profitability even as its revenue outlook becomes more cautious.
Infosys Lowers FY27 Revenue Growth Guidance
One of the most important developments in the results was the reduction in full-year revenue growth guidance.
| Guidance metric | Previous outlook | Revised outlook |
|---|---|---|
| FY27 revenue growth, constant currency | 1.5%–3.0% | 1.0%–2.0% |
| FY27 operating margin | 20%–22% | 20%–22% |
The revision signals that Infosys expects underlying revenue growth to be more modest than previously anticipated. Reuters reported that the company lowered its forecast despite slightly exceeding analyst expectations for quarterly revenue.
The reduction also reflects broader uncertainty in the IT services sector. Clients are reassessing technology budgets, negotiating for productivity gains and evaluating how AI changes the amount of traditional development and outsourcing work they need.
The guidance change does not mean revenue is expected to fall in absolute terms. It means the company’s forecast for year-on-year growth on a constant-currency basis has been reduced.
AI Revenue and Large Deal Wins Provide Growth Opportunities
AI is becoming an increasingly important part of Infosys’ business. Management said AI revenue accounted for 10.5% of total revenue and grew 29% quarter-on-quarter.
This growth reflects opportunities in AI implementation, enterprise transformation and services that help companies deploy AI in business operations. At the same time, AI creates pressure on traditional services as customers expect providers to deliver more work with fewer billable hours.
Large deal wins also strengthened during the quarter. Infosys reported $5.2 billion in large deal wins, compared with $3.1 billion in Q2 FY26. Management said the total included a mega deal worth more than $2 billion, while 62% of large deal wins represented net new business.
Large deal bookings can support future revenue visibility, but they do not automatically translate into immediate revenue. The timing of implementation, contract duration, client spending and project execution all affect when the value of a deal appears in reported results.
Infosys Announces ₹26 Interim Dividend
Infosys’ board announced an interim dividend of ₹26 per equity share. The record date is November 3, 2026, while the payout is scheduled for November 11, 2026, according to the company’s results coverage.
An interim dividend is a distribution of part of a company’s earnings or available reserves to eligible shareholders before the final dividend for the financial year. Shareholders generally need to meet the applicable eligibility and settlement requirements to receive the payment.
The dividend announcement provides an additional shareholder-return element to the quarterly results. However, the dividend amount alone does not determine whether the stock is attractively valued; investors also need to consider the share price, earnings outlook, cash generation and future business risks.
The Bigger Picture
Infosys’ Q2 FY27 results show a company balancing several competing forces. Revenue and profit increased year-on-year, large deal wins improved and AI-related services grew. Yet the reduction in annual revenue guidance indicates that management remains cautious about the pace of underlying growth.
The wider IT services industry is adapting to a market where AI can create new consulting and implementation opportunities while reducing demand for some traditional work. Providers must demonstrate measurable value, maintain margins and build new capabilities as clients change how they purchase technology services. Infosys’ ability to convert AI interest and large deal bookings into sustainable revenue will be important in coming quarters.
FAQs
1. What was Infosys’ Q2 FY27 net profit?
Infosys reported consolidated net profit of ₹7,823 crore for the quarter ended September 30, 2026, up 6.2% from ₹7,364 crore in Q2 FY26.
2. What was Infosys’ Q2 FY27 revenue?
Revenue from operations rose 10.7% year-on-year to ₹49,244 crore, compared with ₹44,490 crore in the same quarter of the previous financial year.
3. Why did Infosys reduce its FY27 revenue guidance?
Infosys lowered its constant-currency revenue growth forecast to 1%–2% from 1.5%–3%. The revision reflects a more cautious outlook for underlying growth amid an uneven demand environment and changing client expectations around AI-driven productivity.
4. What dividend did Infosys announce?
Infosys announced an interim dividend of ₹26 per share. The record date is November 3, 2026, and the payout is scheduled for November 11, 2026.
5. How much did Infosys’ large deal wins reach in Q2 FY27?
Large deal wins reached $5.2 billion, compared with $3.1 billion in Q2 FY26. Management said 62% of the wins represented net new business.
Looking Ahead
Investors will watch whether Infosys can convert its stronger deal pipeline and growing AI business into revenue while maintaining operating margins. Future quarterly results, changes in client spending and the company’s progress against its revised FY27 guidance will help establish whether the current growth rate is sustainable.
The results underline the importance of looking beyond headline profit growth when evaluating an IT services company. Revenue quality, constant-currency performance, deal conversion, margin stability and the annual outlook together provide a more complete picture of Infosys’ operating trajectory.
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