Infosys Limited Earnings Recaps
Q2 2027
Oct 27, 2026
Infosys shares fell 6.0% after earnings, with investors likely focused on revenue growth coming in below management’s expectations and a cautious full-year outlook of 1%–2% constant-currency growth. Management cited softer volume, lower-than-anticipated price increases, and cautious client spending.
Key takeaways
- Q2 revenue was $5.145 billion, up 1.2% sequentially and 1.5% year on year in constant currency; acquisition contributed about 0.4% to sequential growth.
- AI revenue reached 10.5% of total revenue and grew more than 29% sequentially.
- Large-deal TCV was $5.2 billion, with 62% net new; this included a net-new deal worth over $2 billion and a $1 billion renewal.
- Operating margin was 21%, down 0.1 percentage point sequentially. Competitive intensity weighed on realization, offsetting some margin tailwinds.
- Full-year revenue growth guidance is 1%–2% in constant currency, while operating-margin guidance remains 20%–22%.
Q3 2026
Jan 15, 2026
Infosys reported a solid Q3 performance with a 0.6% sequential revenue growth and raised its revenue growth guidance for the fiscal year to 3-3.5%, driven by robust large deal wins and a strong focus on AI initiatives.
Key takeaways
- Large deal wins totaled $4.8 billion during the quarter, with 57% attributed to net new contracts, including a significant $1.6 billion deal with the U.K. National Health Service.
- Adjusted operating margin remained stable at 21.2%, reflecting effective cost management despite headwinds from lower utilization rates.
- Free cash flow generated during the quarter was $915 million, indicating strong financial health and capacity for reinvestment.
- The company is currently working on 4,600 AI projects, aligning with its strategy to capture emerging market opportunities in AI-driven services.
- Infosys has deepened its AI capabilities with the launch of Topaz Fabric, enhancing enterprise adoption of AI solutions across client operations.