Infosys reported a 6.2% year-on-year (YoY) increase in consolidated net profit to ₹7,823 crore in Q2 FY27, while revenue grew 10.7% to ₹49,244 crore. The IT major maintained its operating margin at 21%, secured large deals worth $5.2 billion and recorded 29% sequential growth in artificial intelligence (AI) revenue.
However, Infosys reduced its FY27 constant-currency revenue growth guidance to 1-2% from 1.5-3%, indicating continued pressure on IT spending. The company also announced an interim dividend of ₹26 per share.
This Infosys Q2 FY27 Results Analysis examines financial performance, the revenue guidance cut, AI growth, deal wins, business segments, cash flow and the key factors investors should monitor.
Table of Contents
- Infosys Q2 FY27 Results: Key Highlights
- Infosys Q2 FY27 Financial Performance
- Infosys FY27 Revenue Guidance Cut
- Large Deal Wins Reach $5.2 Billion
- Infosys AI Revenue Grows 29% QoQ
- Infosys Q2 FY27 Segment-Wise Performance
- Infosys Geographic Revenue Performance
- Operating Margins and Profitability
- Free Cash Flow and Balance Sheet
- Employee Strength and Client Metrics
- Infosys Acquisitions and Expansion
- Infosys H1 FY27 Results
- Infosys Dividend 2026
- Infosys Share Price Reaction
- Key Risks and What Investors Should Track
- Conclusion
Infosys announced its September-quarter results on 23 October 2026. The results showed higher revenue and earnings, supported by stable operating margins and strong contract bookings.
The following table summarises the main financial and operational indicators from the Infosys Q2 FY27 report.
| Key Metric |
Q2 FY27 Performance |
| Revenue from operations |
₹49,244 crore, up 10.7% YoY |
| Net profit attributable to shareholders |
₹7,823 crore, up 6.2% YoY |
| Revenue in US dollars |
$5,145 million |
| Constant-currency revenue growth |
1.5% YoY; 1.2% QoQ |
| Operating profit |
₹10,330 crore |
| Operating margin |
21.0% |
| Basic EPS |
₹19.32 |
| Large-deal total contract value |
$5.2 billion |
| Net-new share of large deals |
62% |
| AI revenue contribution |
10.5% |
| AI revenue growth |
29% QoQ |
| Free cash flow |
₹8,898 crore |
| Total employees |
3,32,542 |
| Voluntary attrition (LTM) |
12.7% |
| FY27 revenue growth guidance |
1-2% in constant currency |
| FY27 operating margin guidance |
20-22% |
| Interim dividend |
₹26 per share |
Source: Infosys Q2 FY27 earnings release and fact sheet.
The results highlight three developments for investors:
-
Strong deal bookings: Large-deal TCV reached $5.2 billion, with a substantial contribution from new business.
-
Increasing AI revenue: AI services accounted for 10.5% of total revenue, compared with 8.2% in the previous quarter.
-
Cautious growth outlook: Despite stronger deal wins, management reduced its full-year revenue guidance.
The difference between strong contract bookings and modest underlying revenue growth is an important aspect of the quarter.
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Infosys recorded growth across revenue, gross profit, operating profit and net profit during the quarter ended 30 September 2026.
However, net profit increased more slowly than revenue, reflecting higher operating expenses, lower other income and increased tax expenses.
Infosys Q2 FY27 vs Q2 FY26
The following table compares the company's consolidated financial performance with the corresponding quarter of the previous year.
| Financial Metric |
Q2 FY27 |
Q2 FY26 |
| Revenue |
₹49,244 Cr |
₹44,490 Cr |
| Gross profit |
₹15,301 Cr |
₹13,690 Cr |
| Operating profit |
₹10,330 Cr |
₹9,353 Cr |
| Operating margin |
21.0% |
21.0% |
| Profit before tax |
₹11,063 Cr |
₹10,229 Cr |
| Net profit attributable to shareholders |
₹7,823 Cr |
₹7,364 Cr |
| Basic EPS |
₹19.32 |
₹17.76 |
Source: Infosys consolidated financial results and IFRS fact sheet.
Revenue increased 10.7% YoY, while gross profit and operating profit rose 11.8% and 10.4%, respectively. Profit before tax increased 8.2%, followed by a smaller 6.2% increase in shareholder-attributable net profit.
Sequentially, Infosys also reported higher revenue and earnings compared with Q1 FY27.
| Financial Metric |
Q1 FY27 |
| Revenue |
₹48,211 Cr |
| Gross profit |
₹15,178 Cr |
| Operating profit |
₹10,163 Cr |
| Operating margin |
21.1% |
| Profit before tax |
₹11,028 Cr |
| Net profit attributable to shareholders |
₹7,769 Cr |
| Basic EPS |
₹19.19 |
Revenue grew approximately 2.1% QoQ in rupee terms, while net profit increased 0.7%.
Revenue grows 10.7%, but constant-currency growth remains modest
Infosys reported quarterly revenue of ₹49,244 crore, compared with ₹44,490 crore in Q2 FY26.
However, revenue growth varied considerably depending on the reporting currency.
| Revenue Measurement |
YoY Growth |
| Indian rupees |
+10.7% |
| Reported US dollars |
+1.3% |
| Constant currency |
+1.5% |
Rupee revenue growth was substantially higher than US dollar revenue growth, largely because of foreign-exchange translation effects.
Constant-currency growth removes the impact of currency movements and provides a clearer measure of underlying business performance.
At 1.5% YoY, Infosys' underlying revenue growth remained modest despite its double-digit rupee revenue increase.
For investors, this distinction is important when assessing business demand rather than changes caused by exchange rates.
Infosys Q2 FY27 net profit rises 6.2%
Infosys reported net profit attributable to shareholders of ₹7,823 crore, compared with ₹7,364 crore a year earlier.
The company's calculated net profit margin declined from approximately 16.6% in Q2 FY26 to 15.9% in Q2 FY27.
Three financial developments explain why earnings growth remained below revenue growth:
-
Higher operating expenses: Selling, marketing and administrative expenses collectively increased 14.6%, compared with 10.7% revenue growth.
-
Lower other income: Other income, net of finance costs, fell 16.3% to ₹733 crore from ₹876 crore.
-
Higher tax expenses: Income tax expense increased 13% to ₹3,225 crore from ₹2,854 crore.
Consequently, profit before tax increased 8.2%, while net profit attributable to shareholders grew 6.2%.
Consolidated profit for the period, including non-controlling interests, was ₹7,838 crore. The commonly reported ₹7,823 crore figure excludes the share attributable to non-controlling interests.
Why did Infosys EPS grow faster than net profit?
Basic earnings per share increased 8.7% YoY to ₹19.32 from ₹17.76, exceeding the 6.2% growth in net profit attributable to shareholders.
One contributing factor was the company's ₹18,000 crore share buyback completed during FY26, which reduced its outstanding share base.
A lower share count can increase earnings per share even when total profit grows more slowly.
Investors should therefore assess both net profit and EPS rather than relying on either measure independently.
One of the most significant developments in the Infosys Q2 FY27 results was the reduction in management's revenue growth expectations for the financial year ending March 2027.
Although deal bookings improved, Infosys lowered its expected constant-currency revenue growth range.
Previous FY27
| Guidance Metric |
Previous FY27 |
| Revenue growth in constant currency |
1.5-3.0% |
| Operating margin |
20-22% |
Revised FY27
| Guidance Metric |
Revised FY27 |
| Revenue growth in constant currency |
1.0-2.0% |
| Operating margin |
20-22% |
The company reduced both the lower and upper ends of its revenue growth guidance while maintaining its operating-margin expectations.
This followed an earlier revision of the revenue outlook in July 2026.
Why did Infosys lower its FY27 revenue guidance?
Management commentary following the results highlighted several factors affecting demand and revenue growth.
-
Weak discretionary spending: Some clients continued delaying or reducing technology projects.
-
Pricing pressure: Customers increasingly sought cost savings and productivity improvements.
-
Retail and Hi-Tech weakness: Client-specific project slowdowns affected these businesses.
-
AI-driven productivity: Automation enabled more work to be completed with fewer resources, affecting traditional revenue models.
-
Offshore delivery: Shifting work to lower-cost delivery locations improved efficiency but could reduce contract revenue.
The reduction in guidance indicates that management does not expect stronger deal bookings to translate immediately into faster revenue growth.
For investors, the concern is not simply whether Infosys continues signing large contracts, but how quickly those contracts begin contributing to quarterly revenue.
Infosys reported $5.2 billion in large-deal total contract value (TCV) during Q2 FY27, a substantial increase from the previous quarter.
Large-deal TCV represents the total contractual value of agreements secured over their duration rather than revenue recognised immediately.
Infosys large deal wins: Q1 vs Q2 FY27
The following figures show a significant sequential improvement in contract bookings.
| Deal Metric |
Q1 FY27 / Q2 FY27 |
| Large-deal TCV |
$3.6 Bn / $5.2 Bn |
| Net-new business contribution |
61% / 62% |
Large-deal TCV increased approximately 44.4% QoQ, while cumulative deal wins for H1 FY27 reached $8.8 billion.
The quarter included:
-
A net-new mega deal exceeding $2 billion.
-
A major renewal worth approximately $1 billion.
-
A 62% net-new contribution to total deal value.
The strong net-new share indicates that Infosys continued attracting additional business alongside existing contract renewals.
When will these large deals contribute to Infosys revenue?
According to management commentary, the net-new mega deal is expected to begin ramping up towards the latter part of Q4 FY27.
Its revenue contribution during FY27 is expected to remain limited, with a more meaningful impact anticipated in FY28.
This timing explains why strong deal wins and weaker near-term revenue guidance can occur simultaneously.
For investors, the key factors are the timing of contract execution, project ramp-ups, revenue recognition and operating profitability.
A large contract can improve future revenue visibility without immediately increasing quarterly earnings.
Artificial intelligence remained an important growth area in Infosys' September 2026 quarter.
The company reported that AI-related revenue grew 29% sequentially, while its contribution to total revenue increased to 10.5%.
Infosys AI revenue contribution
The following figures show the increasing share of AI-related services in Infosys' overall business.
| Period |
AI Share of Total Revenue |
| Q1 FY27 |
8.2% |
| Q2 FY27 |
10.5% |
The 29% figure refers to sequential growth in AI revenue, while 10.5% represents the contribution of AI-related services to the company's total revenue.
Infosys' AI-related services include enterprise AI implementation, software development, automation, business process transformation and data modernisation.
Its Infosys Topaz offering forms part of the company's broader AI capabilities.
What does AI revenue growth mean for Infosys investors?
The rising contribution of AI services indicates a shift in the company's business mix.
However, higher AI revenue does not automatically guarantee higher operating margins.
AI creates two potentially contrasting effects:
-
New revenue opportunities: Enterprises require AI consulting, implementation, data infrastructure and automation services.
-
Productivity-related pricing pressure: AI can reduce the amount of billable work required for some traditional IT services.
The long-term profitability impact depends on contract pricing, delivery costs, project complexity and the proportion of productivity benefits Infosys retains.
Investors should therefore track AI revenue growth alongside operating margins and overall constant-currency revenue growth.
Infosys reported uneven performance across its business verticals.
Financial Services remained the largest revenue contributor, while Life Sciences recorded the strongest growth. Retail and Hi-Tech continued experiencing declining demand.
Infosys Q2 FY27 Business Segment Revenue Breakdown
The following table highlights Infosys' segment-wise revenue and contribution to total revenue during Q2 FY27.
| Business Segment |
Q2 FY27 Revenue and Share |
| Financial Services |
₹13,774 Cr (28.0%) |
| Manufacturing |
₹7,913 Cr (16.0%) |
| Energy, Utilities, Resources & Services |
₹6,975 Cr (14.2%) |
| Communication |
₹6,150 Cr (12.5%) |
| Retail |
₹5,664 Cr (11.5%) |
| Life Sciences |
₹4,145 Cr (8.4%) |
| Hi-Tech |
₹3,332 Cr (6.8%) |
| Others |
₹1,291 Cr (2.6%) |
| Total |
₹49,244 Cr (100%) |
Infosys Q2 FY27 Segment-Wise Growth
The following table shows the year-on-year constant-currency (CC) growth across Infosys' business segments.
| Business Segment |
YoY CC Growth |
| Financial Services |
+2.1% |
| Manufacturing |
-0.7% |
| Energy, Utilities, Resources & Services |
+7.3% |
| Communication |
+4.1% |
| Retail |
-7.7% |
| Life Sciences |
+32.5% |
| Hi-Tech |
-17.3% |
| Others |
-4.7% |
| Total |
+1.5% |
Source: Infosys Q2 FY27 segment reporting and fact sheet. Segment growth figures are in constant currency.
Financial Services remains the largest revenue contributor
Financial Services generated ₹13,774 crore, representing 28% of the company's quarterly revenue.
The segment recorded 2.1% YoY constant-currency growth.
Because Financial Services contributes more than one-quarter of total revenue, changes in banking and financial-services technology expenditure can meaningfully influence company-wide performance.
Life Sciences records the highest growth
Life Sciences revenue reached ₹4,145 crore, contributing 8.4% to total revenue.
The segment delivered 32.5% YoY constant-currency growth, significantly exceeding Infosys' overall growth rate.
However, the performance should be considered alongside the acquisition of Optimum Achieve Holdings, including Optimum Healthcare IT, completed in May 2026.
Infosys did not separately disclose organic Life Sciences growth in its headline segment fact sheet, making it difficult to determine how much growth came from existing operations and how much came from acquisitions.
Energy and utilities supports profitability
The Energy, Utilities, Resources and Services segment reported revenue of ₹6,975 crore and constant-currency growth of 7.3%.
Segment profit increased to ₹1,986 crore from ₹1,506 crore a year earlier.
This made the vertical an important contributor to the company's operating performance.
Retail and Hi-Tech remain under pressure
Retail revenue declined 7.7% YoY in constant currency, while Hi-Tech recorded a sharper 17.3% decline.
Manufacturing also reported a smaller contraction of 0.7%.
These trends highlight the uneven demand environment across client industries.
A recovery in discretionary technology projects and client spending within Retail and Hi-Tech would be important for improving Infosys' overall growth rate.
Infosys continued generating most of its revenue from international markets, particularly North America and Europe.
However, growth varied across geographies, with North America recording a decline despite remaining the company's largest market.
Infosys geographic revenue breakdown
The following table presents each region's contribution to total revenue and year-on-year constant-currency growth.
| Geography |
Revenue Share and YoY CC Growth |
| North America |
54.6% / -1.5% |
| Europe |
32.5% / +4.6% |
| Rest of the world |
10.1% / +10.9% |
| India |
2.8% / -3.5% |
| Total |
100% / +1.5% |
Source: Infosys Q2 FY27 fact sheet.
North America remains a key concern
North America accounted for 54.6% of quarterly revenue but recorded a 1.5% constant-currency decline.
Given its substantial revenue contribution, sustained weakness in this region can restrict the company's overall growth.
Europe performed better, recording 4.6% constant-currency growth and contributing 32.5% of total revenue.
The rest-of-the-world business grew 10.9%, although its smaller contribution limited its influence on company-wide revenue.
For investors, a recovery in North American technology spending remains an important factor in assessing Infosys' medium-term growth prospects.
Infosys maintained its operating margin at 21% during Q2 FY27, despite moderate underlying revenue growth and continued pricing pressures.
Operating profit increased 10.4% YoY to ₹10,330 crore from ₹9,353 crore.
However, the operating margin declined slightly from 21.1% in Q1 FY27.
Infosys Q2 FY27 profitability comparison
The following figures show stable operating profitability alongside a decline in net profit margin.
| Profitability Metric |
Q2 FY27 Vs Q2 FY26 |
| Gross profit |
₹15,301 Cr / ₹13,690 Cr |
| Gross margin (calculated) |
31.1% / 30.8% |
| Operating profit |
₹10,330 Cr / ₹9,353 Cr |
| Operating margin |
21.0% / 21.0% |
| Net profit margin (calculated) |
15.9% / 16.6% |
Net profit margin is calculated using profit attributable to shareholders.
The gross margin increased by approximately 30 basis points, while the operating margin remained unchanged YoY.
Management identified operational efficiency initiatives, currency movements, calendar-related factors and productivity improvements under Project Maximus as contributors to margin resilience.
Chief Financial Officer Jayesh Sanghrajka also highlighted cost and operational efficiency measures as factors supporting margins despite a challenging demand environment.
Nevertheless, several pressures remain relevant:
-
Higher employee compensation and operating expenses.
-
Continued pricing negotiations with clients.
-
Investment in AI capabilities and workforce development.
-
Currency volatility and changes in delivery mix.
The maintained FY27 operating-margin guidance of 20-22% indicates that management expects to protect profitability despite lowering revenue growth expectations.
For investors, the sustainability of margins will be important as larger contracts begin contributing to revenue.
Infosys continued generating substantial free cash flow during Q2 FY27, although quarterly cash generation declined compared with the previous year.
Free cash flow represents cash generated from operating activities after capital expenditure.
Infosys Q2 FY27 Cash Flow Performance
The following table highlights Infosys' free cash flow and cash reserves for the quarter ended September 2026.
| Cash Flow Metric |
Q2 FY27 |
| Free cash flow (₹ Cr) |
8,898 |
| Free cash flow ($ Mn) |
928 |
| Cash and investments (₹ Cr) |
45,232 |
| Cash and investments ($ Mn) |
4,720 |
Infosys Q1 FY27 Cash Flow Performance
For a sequential comparison, the following table presents Infosys' free cash flow and cash reserves in Q1 FY27.
| Cash Flow Metric |
Q1 FY27 |
| Free cash flow (₹ Cr) |
9,051 |
| Free cash flow ($ Mn) |
955 |
| Cash and investments (₹ Cr) |
37,065 |
| Cash and investments ($ Mn) |
3,916 |
Infosys Q2 FY26 Cash Flow Performance
The following table provides the corresponding figures from Q2 FY26 for a year-on-year comparison.
| Cash Flow Metric |
Q2 FY26 |
| Free cash flow (₹ Cr) |
9,677 |
| Free cash flow ($ Mn) |
1,101 |
| Cash and investments (₹ Cr) |
54,809 |
| Cash and investments ($ Mn) |
6,173 |
Source: Infosys Q2 FY27 fact sheet. Cash and investments represent period-end balances under the company's stated definition.
Quarterly free cash flow declined approximately 8.1% YoY in rupee terms.
Nevertheless, Infosys reported free cash flow equivalent to approximately 113.5% of net profit using its rupee figures. The company reported 113.3% conversion using US dollar figures.
This indicates that free cash flow remained higher than reported earnings during the quarter.
However, the year-on-year decline deserves attention, particularly when considering future dividend capacity and working-capital requirements.
Infosys balance sheet remains strong
As of 30 September 2026, Infosys held ₹45,232 crore in consolidated cash and investments.
Its IFRS disclosures stated that the company had no debt, although lease liabilities and other financial obligations remained on the balance sheet.
This liquidity provides financial flexibility for acquisitions, shareholder distributions, technology investments and operating requirements.
Investors should monitor whether cash generation improves as new large-deal contracts begin generating revenue.
Infosys expanded its workforce during Q2 FY27 while reporting lower employee attrition and slightly higher utilisation.
These operational indicators help assess workforce efficiency, delivery capacity and the sustainability of operating margins.
Infosys Q2 FY27 Employee Strength and Attrition
The following table highlights Infosys' employee headcount, attrition and utilisation during Q2 FY27.
| Employee Metric |
Q2 FY27 |
| Total employees |
3,32,542 |
| Software professionals |
3,14,508 |
| Sales and support employees |
18,034 |
| Voluntary attrition (LTM) |
12.7% |
| Utilisation excluding trainees |
85.4% |
| Offshore effort |
77.4% |
Infosys Employee Metrics: Comparative Periods
For comparison, the following table presents Infosys' employee metrics for Q1 FY27 and Q2 FY26.
| Employee Metric |
Comparative Periods |
| Total employees |
Q1 FY27: 3,28,062; Q2 FY26: 3,31,991 |
| Software professionals |
Q1 FY27: 3,10,039; Q2 FY26: 3,14,500 |
| Sales and support employees |
Q1 FY27: 18,023; Q2 FY26: 17,491 |
| Voluntary attrition (LTM) |
Q1 FY27: 13.0%; Q2 FY26: 14.3% |
| Utilisation excluding trainees |
Q1 FY27: 84.9%; Q2 FY26: 85.1% |
| Offshore effort |
Q1 FY27: 77.2%; Q2 FY26: 76.8% |
Source: Infosys Q2 FY27 fact sheet.
Total headcount increased by 4,480 employees sequentially.
Voluntary attrition declined from 14.3% a year earlier to 12.7%, while utilisation excluding trainees improved to 85.4%.
Lower attrition can reduce recruitment and employee replacement costs, while higher utilisation can support operating efficiency.
However, AI-led automation is changing workforce requirements across the IT services industry.
Investors should monitor whether Infosys can improve employee productivity and revenue generation while maintaining delivery quality.
Infosys client metrics
Infosys reported 2,060 active clients at the end of Q2 FY27, compared with 2,027 in the previous quarter.
The following table summarises changes in client relationships and revenue concentration.
| Client Metric |
Q2 FY27 and Q1 FY27 |
| Active clients |
Q2 FY27: 2,060; Q1 FY27: 2,027 |
| Gross client additions |
Q2 FY27: 142; Q1 FY27: 155 |
| Clients generating $1 Mn+ annually |
Q2 FY27: 1,048; Q1 FY27: 1,026 |
| Clients generating $10 Mn+ annually |
Q2 FY27: 322; Q1 FY27: 333 |
| Clients generating $50 Mn+ annually |
Q2 FY27: 87; Q1 FY27: 85 |
| Clients generating $100 Mn+ annually |
Q2 FY27: 42; Q1 FY27: 41 |
| Top 10 clients' revenue share |
Q2 FY27: 19.8%; Q1 FY27: 19.9% |
| Days sales outstanding |
Q2 FY27: 64; Q1 FY27: 63 |
Client revenue thresholds are based on last-twelve-month revenue. Source: Infosys Q2 FY27 fact sheet.
The increase in active clients and clients generating more than $1 million annually indicates continued expansion of the customer base.
However, the number of clients generating at least $10 million annually declined sequentially.
Meanwhile, the top 10 clients contributed 19.8% of revenue, marginally below the previous quarter.
Days sales outstanding increased from 63 to 64 days QoQ but remained lower than the 71 days reported in Q2 FY26.
These indicators provide context for evaluating client demand, revenue concentration and working-capital management.
Infosys completed two acquisitions during the first half of FY27, strengthening its insurance and healthcare technology capabilities.
The transactions support the company's strategy of expanding specialised industry services alongside its broader AI and digital transformation offerings.
Major Infosys acquisitions in FY27
The following table outlines the acquisitions completed during H1 FY27.
| Company Acquired |
Acquisition Details |
| Stratus Global LLC |
Date: 21 April 2026;
Total Consideration: $74 million |
| Optimum Achieve Holdings Inc. |
Date: 4 May 2026;
Total Consideration: $365 million |
Source: Infosys consolidated financial disclosures. Consideration includes applicable contingent components.
Stratus Global strengthened Infosys' insurance technology and AI-led transformation capabilities, particularly within the property and casualty insurance industry.
Optimum Achieve Holdings, including Optimum Healthcare IT, expanded its healthcare technology consulting and digital transformation capabilities.
The company also disclosed a proposed acquisition of a 75% stake in the Versent Group, subject to regulatory approvals and other conditions.
For investors, acquisitions create opportunities for industry diversification and specialised service capabilities. However, they also introduce execution risks.
Important considerations include acquisition-related goodwill, integration costs, employee retention expenses, acquired-business profitability and returns on invested capital.
Infosys reported higher revenue, operating profit and net profit during the six months ended 30 September 2026.
The company's first-half results reflected stable profitability and cash generation, although constant-currency revenue growth remained subdued.
Infosys H1 FY27 Financial Performance
The following table highlights Infosys' key financial figures for the first half of FY27.
| Financial Metric |
H1 FY27 |
| Revenue |
₹97,454 Cr (+12.3%) |
| Operating profit |
₹20,494 Cr (+12.9%) |
| Profit attributable to shareholders |
₹15,592 Cr (+9.1%) |
| Basic EPS |
₹38.51 (+11.7%) |
| Operating margin |
21.0% |
Infosys H1 FY26 Financial Performance
For a year-on-year comparison, the following table presents Infosys' financial performance during H1 FY26.
| Financial Metric |
H1 FY26 |
| Revenue |
₹86,769 Cr |
| Operating profit |
₹18,157 Cr |
| Profit attributable to shareholders |
₹14,285 Cr |
| Basic EPS |
₹34.47 |
| Operating margin |
20.9% |
Source: Infosys H1 FY27 consolidated financial results.
In US dollar terms, first-half revenue reached $10,227 million, representing 2.1% reported growth and 1.9% constant-currency growth.
H1 free cash flow increased 4.3% YoY to ₹17,949 crore.
The half-year performance indicates that Infosys maintained operating profitability and cash generation despite a challenging demand environment.
However, the gap between rupee revenue growth and constant-currency growth remains an important consideration when evaluating underlying business performance.
Infosys announced an interim dividend of ₹26 per equity share for FY27, compared with ₹23 per share in the previous year.
The increase represents approximately 13% YoY growth in the interim dividend.
Infosys dividend record date and payment date
The following table summarises the dividend announcement.
| Dividend Detail |
Information |
| Interim dividend |
₹26 per share |
| Previous year's interim dividend |
₹23 per share |
| Dividend record date |
3 November 2026 |
| Dividend payment date |
11 November 2026 |
| Face value |
₹5 per share |
The dividend is subject to applicable tax deductions.
Infosys estimated that the interim dividend would involve a cash outflow of approximately ₹10,531 crore, excluding dividends on treasury shares.
Infosys capital allocation policy
Infosys' capital allocation policy targets returning approximately 85% of cumulative free cash flow over a five-year period through dividends, share buybacks and/or special dividends, subject to applicable requirements and approvals.
The company's substantial cash reserves and continued free cash flow generation support its ability to distribute cash to shareholders.
However, future dividend payments will depend on profitability, liquidity, business investment requirements and board decisions.
For income-focused investors, cash flow generation and dividend sustainability remain more important than any single quarterly payout.
Infosys announced its Q2 FY27 earnings on Friday, 23 October 2026, after the regular Indian equity-market session.
This timing is important when interpreting the company's share-price movement.
Infosys NSE share price
Infosys shares closed at ₹1,153.80 on the NSE on 23 October 2026, marginally higher by approximately 0.04%.
However, this closing price does not represent the domestic market's reaction to the results because the earnings announcement came after the Indian trading session.
Infosys ADR falls 6.58%
Infosys' American Depositary Receipts (ADRs), traded on the New York Stock Exchange, declined following the earnings announcement.
| Infosys ADR Metric |
23 October 2026 |
| NYSE closing price |
$12.35 |
| Daily price change |
-6.58% |
The decline followed the reduction in FY27 revenue growth guidance, despite strong deal bookings and expanding AI revenue.
The negative reaction suggests that investors were concerned about near-term demand and pricing conditions. Broader weakness in US equity markets also formed part of the trading backdrop.
As of 24 October 2026, the first Indian trading session following the earnings announcement had not yet taken place.
Therefore, the domestic post-results share-price reaction remained pending.
The Infosys Q2 FY27 results showed stable profitability and growing AI opportunities, but several operating challenges remain relevant.
Investors should evaluate these risks alongside the company's liquidity position, client relationships and large-deal pipeline.
Key risks for Infosys investors
-
Slower discretionary IT spending: Continued delays in technology projects could restrict revenue growth and contract execution.
-
Pricing pressure: Competition, offshore delivery and AI-led productivity expectations could affect revenue realisation and profit margins.
-
North American dependence: With 54.6% of revenue coming from North America, continued weakness in the region could influence overall financial performance.
-
Retail and Hi-Tech slowdown: Sustained declines in these business verticals could offset growth in Life Sciences and Energy.
-
Large-deal execution: Strong TCV does not guarantee immediate revenue. Delays in project ramp-ups could restrict future growth.
-
Acquisition and operating costs: Integration expenses, employee compensation, currency movements and investment in emerging technologies could influence profitability.
What Should Infosys Investors Monitor Next?
The next few quarters will be important for determining whether large-deal bookings and AI revenue growth translate into stronger overall business performance.
-
FY27 Revenue Guidance: Track whether Infosys achieves its revised 1–2% constant-currency revenue growth guidance, which will indicate demand stability.
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Large-Deal Execution: Monitor the ramp-up of the $2 billion-plus deal and its contribution to future revenue.
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AI Revenue Growth: Watch whether AI revenue continues to grow beyond its current 10.5% contribution to total revenue.
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Operating Margin: Assess whether Infosys can sustain its operating margin around 21% despite pricing and cost pressures.
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North American Business: Track recovery in constant-currency revenue growth in North America, Infosys' largest market.
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Retail and Hi-Tech Segments: Monitor improvements in client spending and project activity, which could support revenue recovery.
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Free Cash Flow: Evaluate cash conversion and working capital management to assess financial flexibility.
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Employee Productivity: Track utilisation rates, attrition and revenue per employee to understand delivery efficiency.
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Acquisition Performance: Monitor integration progress and profitability of acquired businesses to assess their contribution to growth and returns on capital.
When are Infosys Q3 FY27 results expected?
Infosys' next quarter will cover the three months ending 31 December 2026.
The company's investor information currently identifies 13 January 2027 as the tentative Q3 FY27 earnings release date.
Investors should monitor the company's revised revenue outlook, AI revenue contribution, large-deal execution and margin performance in its upcoming results.
Infosys delivered 10.7% revenue growth and a 6.2% increase in net profit during Q2 FY27, supported by strong deal wins, higher AI revenue and stable operating margins.
However, the reduction in FY27 constant-currency revenue growth guidance to 1-2% highlights continuing pressure from slower client spending, pricing challenges and weakness in certain business verticals.
The company's $5.2 billion large-deal TCV and 29% sequential AI revenue growth provide opportunities for future expansion. Nevertheless, the timing of revenue recognition and profitability of these contracts will determine their financial contribution.
For investors, the central question is whether Infosys can convert its strong order pipeline into sustained revenue growth while maintaining operating margins and cash generation.
Want to understand how Infosys' financial performance changed between Q1 and Q2 FY27? Read the Infosys Q1 FY27 Results Analysis to compare revenue growth, profitability, operating margins and management's full-year outlook.
Frequently Asked Questions
1. What is Infosys Q2 FY27 net profit?
Infosys reported consolidated net profit attributable to shareholders of ₹7,823 crore in Q2 FY27, an increase of 6.2% YoY from ₹7,364 crore in Q2 FY26. The quarter ended on 30 September 2026.
2. What is Infosys Q2 FY27 revenue?
Infosys reported consolidated revenue of ₹49,244 crore in Q2 FY27, compared with ₹44,490 crore in Q2 FY26. Revenue increased 10.7% in rupee terms, while constant-currency growth stood at 1.5% YoY.
3. Why did Infosys cut its FY27 revenue growth guidance?
Infosys reduced its FY27 constant-currency revenue growth guidance to 1-2% from 1.5-3%, reflecting softer discretionary technology spending, pricing pressure and weakness in selected business segments. The operating-margin guidance remained unchanged at 20-22%.
4. How much dividend did Infosys announce in Q2 FY27?
Infosys declared an interim dividend of ₹26 per equity share for FY27, compared with ₹23 per share a year earlier. The dividend record date is 3 November 2026, and payment is scheduled for 11 November 2026.
5. How did Infosys shares react to Q2 FY27 results?
Infosys ADRs declined 6.58% to $12.35 on the NYSE on 23 October 2026, following the earnings announcement and revenue guidance reduction. Infosys shares on the NSE had closed at ₹1,153.80 before the results were released, so the domestic post-results reaction was still pending as of 24 October 2026.