Infosys reported a consolidated net profit of ₹7,823 crore for the September 2026 quarter, about 6% higher than a year earlier, but lowered its full-year revenue growth guidance to 1% to 2% in constant currency. The previous range was 1.5% to 3.0%. The company announced its results on October 23, 2026.
The board also declared an interim dividend of ₹26 per share. Infosys shares fell as much as 4% in early trade on Monday, October 26.
Infosys Q2 FY27 Results at a Glance
Revenue grew modestly in dollar terms, while the operating margin held steady. The table summarises the main figures.
| Metric | Q2 FY27 | Comparison |
|---|---|---|
| Consolidated net profit | ₹7,823 crore | Up about 6% year on year; ₹7,769 crore in Q1 |
| Revenue from operations | ₹49,244 crore | Up about 11% year on year; ₹48,211 crore in Q1 |
| Revenue in dollars | $5,145 million | Up 1.5% year on year and 1.2% quarter on quarter, constant currency |
| Operating margin | 21.0% | Stable |
| EPS growth (rupees) | 8.7% | Year on year |
| Free cash flow | $928 million | 113.3% of net profit |
For the first half of FY27, constant-currency revenue growth was 1.9% year on year and the operating margin was 21.0%, according to the company’s filing with the US Securities and Exchange Commission.
Why Infosys Cut Its FY27 Revenue Guidance
Infosys now expects FY27 revenue growth of 1% to 2% in constant currency. That compares with 1.5% to 3.0% after the June quarter and 1.5% to 3.5% when the year began in April. The operating margin guidance of 20% to 22% was retained.
Media reports cited management comments about heightened market volatility and uncertain demand. Asianet News Network reported that softer volumes and the exit from a large European manufacturing contract affected the quarter, and that clients are seeking cost efficiencies through artificial intelligence, which adds pricing pressure on traditional IT services.
A cut of this kind matters because it lowers the growth the company expects over the remaining two quarters.
Large Deals and AI Revenue
The company highlighted bookings and artificial intelligence as areas of strength.
- Large deal total contract value (TCV) was $5.2 billion, with 62% net new, including a mega deal of more than $2 billion.
- AI revenue was 10.5% of total revenue and grew 29% sequentially.
- Free cash flow conversion was 113.3% of net profit, which signals strong cash generation.
Large deal wins can take time to turn into revenue, which is one reason analysts focus on guidance rather than bookings. Net new means the portion of deal value that comes from new work and not from renewals.
Interim Dividend of ₹26 Per Share
Infosys declared an interim dividend of ₹26 per equity share, with November 3 as the record date, according to published reports. Investors whose names appear as holders on the record date are eligible, and the payout is reported to be on November 11.
Eligibility depends on the shares being held in the investor’s demat and trading account on the record date, so anyone planning to qualify should check the exchange’s settlement timeline before buying.
Infosys Share Price Reaction on October 26
The stock opened the week sharply lower. Infosys touched an intraday low of ₹1,107 on the NSE on Monday, down about 4% from its previous close of ₹1,153.80, according to Upstox and Asianet News Network. It later recovered some of the fall and traded near ₹1,139 to ₹1,143 in morning trade.
The Nifty IT index fell as much as 2.53% to an early low of 31,184.70 from 31,995.50 at the previous close, as the Infosys guidance cut weighed on the sector. Anyone tracking the stock on an online trading platform should note that these are intraday readings and will change through the session.
Key Points for Investors
Several items stand out from the results:
- Profit grew about 6% year on year, with the operating margin stable at 21.0%.
- Revenue growth in constant currency was 1.5% year on year, which is modest compared with the profit growth.
- The lowered guidance range of 1% to 2% implies subdued growth for the rest of FY27.
- AI revenue and large deal wins are the main positives in management’s commentary.
- Sources differ slightly on the year-ago net profit, with figures of ₹7,364 crore and ₹7,387 crore reported, though both indicate growth of about 6%.
What to Watch Next
The key questions for the coming quarters are whether large deal wins convert to revenue, how pricing pressure from AI-led efficiency affects the core business, and whether margins stay within the 20% to 22% range.
Other large IT companies reporting their quarterly numbers will also influence how the sector is valued. For now, the Infosys result shows a company with steady profit and strong cash flow but a more cautious growth outlook.
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