Infosys reported strong Q2 FY27 results, with revenues reaching $5.145 billion, marking a 1.5% year-on-year growth in constant currency. The company secured $5.2 billion in large deal total contract value (TCV), with 62% net new, reinforcing its position in AI-first transformation programs. Operating margin remained stable at 21.0%, and basic EPS saw an 8.7% YoY growth in rupee terms.
Infosys Reports Robust Q2 FY27 Performance
Bengaluru, India – October 23, 2026: Infosys, a global leader in AI-first business consulting and technology services, announced its financial results for the second quarter of fiscal year 2027 (Q2 FY27). The company delivered revenues of $5,145 million, representing a year-on-year growth of 1.5% and sequential growth of 1.2% in constant currency. Operating margin was stable at 21.0%, with EPS growth of 8.7% year on year in rupee terms. The total contract value (TCV) of large deal wins stood at $5.2 billion, with 62% classified as net new business.
Key Financial Highlights
For the first half of fiscal year 2027 (H1 FY27), revenues grew at 1.9% year-on-year in constant currency, with operating margin maintained at 21.0%.
AI Strategy Drives Growth
Salil Parekh, CEO and MD, highlighted the company’s strategic focus, stating, “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% and grew 29% quarter-on-quarter. 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.” He added, “We are advising some of the largest global enterprises on their AI strategy and continue to invest in deep domain and technology capabilities to bring new ideas and an integrated ecosystem to help businesses unlock AI value at scale.”
Guidance and Financial Strength
For FY27, Infosys has revised its revenue guidance to 1%-2% in constant currency, while retaining its margin guidance at 20%-22%. Jayesh Sanghrajka, CFO, commented, “We delivered operating margins of 21.0% in Q2 amidst heightened volatility. Focus on cost and operational efficiency measures while making the required investments, have led to stable margins.” He also emphasized the company’s financial strength, stating, “Free cash flow of $928 million, representing 113.3% of net profit, underscores the financial strength of the business.” The Board also announced an interim dividend of ₹26 per share, representing an increase of 13% from the previous year.
Quarterly Performance
For the quarter ended September 30, 2026:
- Revenues in CC terms grew by 1.5% YoY and 1.2% QoQ.
- Reported revenues were at ₹49,244 crore, showing a growth of 10.7% YoY.
- Operating margin remained stable at 21.0%.
- Basic EPS stood at ₹19.32, a growth of 8.7% YoY.
- FCF was at ₹8,898 crore, a decline of 8.1% YoY; FCF conversion was at 113.5% of net profit.
Six-Month Performance
For the six months ended September 30, 2026:
- Revenues in CC terms grew by 1.9% YoY.
- Reported revenues were at ₹97,454 crore, a growth of 12.3% YoY.
- Operating margin remained stable at 21.0%.
- Basic EPS was at ₹38.51, a growth of 11.7% YoY.
- FCF was at ₹17,949 crore, a growth of 4.3% YoY; FCF conversion was at 115.0% of net profit.
Source: BSE
