Infosys sees 6.2% rise in Q2 net profit, reaches Rs 7,823 crore

Infosys (INFY) revised its fiscal 2027 revenue growth forecast to 1%-2% due to softer performance and updated market conditions. Q2 operating margin was 21%, with management citing pricing pressures and AI-driven productivity sharing. Free cash flow was $928M, and the board declared a 26 rupees per share dividend. Attrition decreased to 12.7%, and net headcount increased by 4,400 employees.

Infosys Ltd. reduced its full-year revenue forecast to 1%-2% growth, citing weak demand. Q2 revenue was $5.145B (up 1.5% YoY), with AI services growing 29% QoQ to 10.5% of total revenue. Net profit rose 6% to 7,823 crore rupees. Shares (INFY) fell 8.5% premarket.

Infosys (INFY) reported Q2 revenue of $5.145B, missing estimates of $5.19B, and cut FY2027 growth guidance to 1-2%. EPS was $0.20 vs. $0.21 expected. Shares fell 4.7%. Despite this, AI revenue grew 29% QoQ, and large deals totaled $5.2B, including a $2B+ mega deal.

Infosys reported stable Q2 margins at 21% and maintained full-year guidance of 20-22%. Revenue outlook was reduced due to softer volumes, pricing pressure, and sector-specific slowdowns. Strength was seen in financial services, energy, and manufacturing, while high-tech and retail sectors underperformed. The company cited AI as a growth opportunity and announced a dividend increase to INR 26 per share.

Infosys reduced its fiscal 2027 constant-currency revenue growth forecast to 1%-2% after reporting a 10.7% increase in rupee-denominated revenue for Q2. Profit rose 6.2% to ₹7,823 crore. The company maintained its operating margin outlook at 20%-22%. AI-related revenue grew 29% from the previous quarter, and the board declared an interim dividend of ₹26 per share.

Infosys reported that its AI business now accounts for 10% of overall revenue in Q2, driven by strong growth and large deals. CFO Sanghrajka noted steady subcontracting costs at 8.9% and a reduction in on-site headcount to 22.6%. The company added 4,400 employees in Q2 and plans compensation hikes starting October 2026.