Infosys Q2 FY27 Profit Climbs 6.2%, Revenue Grows 10.7%, Guidance Cut

Infosys reported a 6.2 percent increase in net profit for the second quarter ended September 30, 2026, reaching ₹7,823 crore compared to the same period last year. Sequentially, the profit edged up slightly by 0.7 percent. Revenue also saw a healthy rise, climbing 10.7 percent year-on-year to ₹49,244 crore.

The revenue boost was primarily driven by strong demand in the life sciences sector as well as in the energy, utilities, resources, and services verticals. Geographically, the company experienced mixed results. North America, its largest market, registered a decline of 1.6 percent year-on-year and 1.5 percent in constant currency terms. Meanwhile, Europe grew by 3.9 percent, and other regions collectively expanded by 15 percent on a yearly basis.

On a constant currency basis, Infosys’s revenue grew 1.2 percent quarter-on-quarter and 1.5 percent year-on-year. These figures reflect moderate growth in a challenging global environment, where discretionary spending remains cautious and economic uncertainties persist.

Despite the revenue growth, Infosys revised its revenue guidance downward for the full fiscal year 2027. The company now expects revenue growth between 1 percent and 2 percent, a reduction from the earlier forecast of 1.5 percent to 3 percent. This adjustment signals the cautious outlook amid ongoing market volatility and restrained client spending.

Market analysts had mixed reactions to the results. Infosys’s revenue slightly exceeded Bloomberg’s estimate of ₹49,108 crore, while net profit fell short of the forecasted ₹7,904 crore. The company's ability to secure significant new contracts highlights continued confidence among clients, even as short-term revenue growth slows.

Infosys secured large deal wins worth $5.2 billion in total contract value during the quarter, including a major deal valued over $2 billion. This represented a significant increase from the $3.6 billion in large deals recorded in the previous quarter. Notably, 62 percent of these deals were with new clients, showcasing Infosys’s expanding footprint in the global IT services market.

CEO and Managing Director Salil Parekh highlighted the growing contribution of artificial intelligence (AI) to the company’s portfolio. AI-related revenue accounted for 10.5 percent of the total and surged 29 percent quarter-on-quarter. Parekh emphasized that Infosys is actively advising some of the world’s largest enterprises on their AI strategies, investing in domain expertise, and building integrated technology ecosystems to help clients scale AI adoption.

Jayesh Sanghrajka, Chief Financial Officer, noted that operating margins stood at 21.0 percent despite the volatile environment. He attributed this stability to disciplined cost management and operational efficiency combined with targeted investments. Free cash flow reached $928 million, amounting to 113.3 percent of net profit, demonstrating solid financial health. The company’s board declared an interim dividend of ₹26 per share, marking a 13 percent increase from the previous year.

Employee strength at Infosys rose to 332,542 by the end of Q2 FY27, with 4,480 new hires added since the previous quarter. The attrition rate for the quarter was recorded at 12.7 percent, reflecting workforce movement as the company continues to adapt to evolving business demands.

Infosys is among the largest IT services firms globally, with a diversified portfolio spanning consulting, technology, and outsourcing services. The company's performance this quarter underscores the challenges faced by the broader IT sector amid global economic shifts, but also highlights its ability to win significant contracts and grow emerging business areas such as AI. The revised revenue guidance indicates a cautious stance as Infosys navigates a complex market environment in fiscal 2027.