Infosys on Friday, 23 October 2026 reported a nearly flat sequential net profit of ₹7,823 crore for the second quarter of FY27, up marginally from ₹7,769 crore in Q1 FY27, while trimming its full-year revenue growth guidance to 1–2 per cent in constant currency — down from the earlier range of 1.5–3 per cent. The Bengaluru-headquartered IT major's results reflect a cautious demand environment even as artificial intelligence spending begins to lift select verticals.

Quarterly and Annual Financials

Revenue from operations climbed 2.14 per cent quarter-on-quarter to ₹49,244 crore in Q2 FY27. On a year-on-year basis, the picture is stronger: net profit rose 6.2 per cent from ₹7,364 crore in Q2 FY26, while revenue grew 11 per cent from ₹44,490 crore in the same period a year ago. The company maintained its operating margin guidance at 20–22 per cent for FY27.

AI Revenues and Deal Wins Drive Optimism

The quarter's standout metric was AI-related revenue, which accounted for 10.5 per cent of total revenue and grew 29 per cent quarter-on-quarter. Infosys also reported strong large deal wins of $5.2 billion, including a mega deal of over $2 billion.

Chief Executive Officer and Managing Director Salil Parekh said: 'We had strong large deals of $5.2 billion, including a mega deal of over $2 billion, reinforcing our position as a trusted partner in the marketplace when clients embark on large and complex transformation programs. Our AI revenue was at 10.5 per cent and grew 29 per cent quarter-on-quarter.'

Parekh added: 'As enterprises move to AI adoption at scale, the strong growth in AI revenues is a recognition of our differentiated market positioning and client confidence. We are advising some of the largest global enterprises on their AI strategy and continue to invest in deep domain and technology capabilities.'

Growth was also supported by demand pick-up from energy and utility clients, a vertical that has accelerated technology transformation spending in recent quarters.

Guidance Cut Signals Demand Caution

The downward revision to FY27 revenue guidance — from 1.5–3 per cent to 1–2 per cent — signals that Infosys sees limited visibility on a broad-based demand recovery in the near term. This comes amid a cautious global IT spending environment, with enterprises in key markets such as the US and Europe still rationalising discretionary technology budgets. Notably, this is not the first guidance trim this cycle; the company has progressively narrowed its outlook as macro headwinds have persisted.

Workforce and Dividend

On the employee front, total headcount stood at 332,542 as of 30 September 2026, a rise of 1.36 per cent from 328,062 in the previous quarter. Voluntary attrition on a trailing twelve-month basis eased to 12.7 per cent, compared with 13 per cent in Q1 FY27 and 14.3 per cent a year ago — a sign of improving workforce stability. Women employees constituted 39.8 per cent of the workforce, marginally up from 39.6 per cent last quarter.

The company declared an interim dividend of ₹26 per share, with 3 November 2026 as the record date and 11 November 2026 as the payout date. Shares of Infosys settled flat at ₹1,154.50 on the BSE on Friday, suggesting markets had largely priced in the mixed outcome ahead of the announcement.

With AI deal pipelines building and attrition stabilising, Infosys will be watched closely in Q3 FY27 for signs that AI revenues can offset the subdued growth in traditional IT services.