Bengaluru (Karnataka): Infosys Ltd, India’s second-largest software exporter, reported a 13% year-on-year (YoY) growth in net profit at Rs 7,364 crore for the second quarter of FY26. Revenue from operations grew 9% YoY to Rs 44,490 crore, reflecting strong client engagement and continued investments in technology solutions. The company also announced an interim dividend of Rs 23 per share, with October 27 set as the record date.
Financial performance highlights
In constant currency terms, Infosys’ revenues grew 2.9% YoY and 2.2% quarter-on-quarter (QoQ) for Q2 FY26. Operating margins declined marginally by 10 basis points YoY to 21%, while gross profit rose 9% YoY to Rs 13,690 crore. The company secured $3.1 billion in deal wins, with 67% being net new in the quarter.
CEO and MD Salil Parekh stated, “We have now delivered two consecutive quarters of strong growth, demonstrating our unique market positioning and client relevance.” He added that the company continues to make strategic investments to future-proof the business, particularly in AI and digital transformation.
Segment-wise growth
Infosys reported growth across most business segments, except for communications and life sciences, which declined 2.5% and 10.5% respectively. The manufacturing division grew 6.6% YoY, while financial services revenue increased 5.4% YoY, showcasing diversified demand across industries.
For the first half of FY26, revenues rose 8% YoY to Rs 86,769 crore, with constant currency growth at 3.3% YoY. Operating margin for H1 stood at 20.9%, down slightly by 0.2% YoY. Infosys also recorded strong free cash flow of $1.1 billion at the end of the September quarter, and employee headcount increased by 8,203 during July-September.
Guidance and outlook
Infosys revised the lower end of FY26 revenue growth guidance to 2-3%, up from 1-3% previously, while retaining the operating margin estimate at 20-22%. Analysts noted that sequential revenue growth of 2% in Q2 positions the company to achieve higher growth in coming quarters to meet the revised guidance.
In a pre-earnings note, Incred Equities projected that 1.5% growth in Q3 and a 1.5% decline in Q4 could lift FY26 revenue growth to 3.5% YoY, slightly above the current guidance. Parekh emphasised that Infosys’ AI-first initiatives over the past three years have helped employees reskill and adapt to the human+AI workplace, strengthening the company’s competitive position.
Conclusion
Infosys’ Q2 results demonstrate a robust performance despite margin pressures, driven by diversified client wins and strategic investments in AI and digital technologies. The company remains focused on long-term growth, while navigating uncertainties in global IT demand and technology disruptions. On Thursday, Infosys shares closed marginally lower at Rs 1,470.9 on NSE, reflecting cautious market sentiment despite strong earnings.