Infosys (NSE, BSE, NYSE: INFY) announced its Q2 FY26 results, showcasing strong growth and a revised revenue guidance. Key highlights include revenues of $5.076 billion, a YoY growth of 2.9%, and a sequential increase of 2.2% in constant currency. The company’s large deal TCV reached $3.1 billion, and free cash flow stood at $1.1 billion. Infosys has revised its FY26 revenue growth guidance to 2%-3% and retained its margin guidance at 20%-22%.
Financial Performance
For the quarter ended September 30, 2025, Infosys reported revenues of $5.076 billion, representing a 2.9% YoY growth and a 2.2% sequential increase in constant currency. The operating margin stood at 21.0%, while free cash flow reached $1.1 billion, constituting 131.1% of net profit. Large deal TCV wins amounted to $3.1 billion, with net new deals comprising 67%. Employee headcount increased by 8,203.
In H1, revenues increased by 3.3% YoY in constant currency, with an operating margin of 20.9%.
Revised Guidance
Infosys has revised its revenue growth guidance for FY26 to 2%-3% in constant currency, while retaining the operating margin guidance at 20%-22%.
Segment Highlights
For the quarter ended September 30, 2025:
- Revenues in CC terms grew by 2.9% YoY and 2.2% QoQ
- Reported revenues at ₹44,490 crore, growth of 8.6% YoY
- Operating margin at 21.0%, decline of 0.1% YoY and growth of 0.2% QoQ
- Basic EPS at ₹17.76, growth of 13.1% YoY
- FCF at ₹9,677 crore, growth of 38.0% YoY; FCF conversion at 131.2% of net profit
For the six months ended September 30, 2025:
- Revenues in CC terms grew by 3.3% YoY
- Reported revenues at ₹86,769 crore, growth of 8.1% YoY
- Operating margin at 20.9%, decline of 0.2% YoY
- Basic EPS at ₹34.47, growth of 10.9% YoY
- FCF at ₹17,210 crore, growth of 6.5% YoY; FCF conversion at 120.4% of net profit
Strategic Outlook
Jayesh Sanghrajka, CFO, commented, “We had robust all-round performance in Q2 – strong growth, resilient margins, very high cash generation and 13.1% EPS growth year on year in rupee terms. We continue to make strategic investments to futureproof the business with a tight focus on execution, amidst high uncertainty. In line with our Capital Allocation Policy, we have announced a share buyback for ₹18,000 crore during the quarter and an interim dividend of ₹23 per share, an increase of 9.5% over last fiscal”.
Source: BSE