Newsletter
Infosys’ Q2 earnings were in line with expectations, but the company now expects slower growth this financial year.
It cut its FY27 revenue growth forecast to 1-2%, from 1.5-3%. However, it still expects to keep ₹20-22 as operating profit for every ₹100 in revenue.
By the numbers:
- Net profit: up 0.7% at ₹7,823 cr vs ₹7,769 cr (QoQ)
- Revenue: up 2.1% at ₹49,244 cr vs ₹48,211 cr (QoQ)
- $ revenue: up 1.2% at $5,145 million vs $5,082 million (QoQ)
- EBIT margin: at 21% vs 21.1% (QoQ)
- CC revenue growth: at 1.2% vs 1% (QoQ
Infosys signed $5.2 billion worth of large contracts, up 68% from a year earlier. This included one deal worth more than $2 billion. New business, rather than renewals of existing contracts, accounted for 62% of the total deal value.
AI contributed 10.5% of Infosys’ total revenue, with revenue from these services rising 29% from the previous quarter.
Demand grew across all six parts of its AI business. These include building AI agents, updating older software and helping companies use AI to manage processes and work with data.
More large businesses are using Infosys’ AI services. The company is supporting this demand through its Topaz Fabric platform, technology partnerships and employee training.
Demand was stronger among clients in financial services, energy, utilities and manufacturing. Retail and high-tech clients remained relatively weak.
Headcount update: Infosys also added 4,480 employees during the quarter, taking its workforce to 332,542 at the end of September.
