Infosys Limited Q2 2027 Earnings Recap

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%.