Infosys Q2 Results: Net profit rises to Rs 7,823 crore; FY27 revenue guidance cut
Infosys reported a net profit of Rs 7,823 crore for Q2, up from Rs 7,769 crore last quarter. Revenue rose 2.1% to Rs 49,244 crore. The company cut its FY27 revenue growth guidance to 1-2% from 1.5-3%. AI services contributed 10.5% of revenue, growing 29% QoQ. Infosys declared an interim dividend of Rs 26 per share.
How this was made
The 30-second read
Why it matters
The guidance cut is likely to trigger a sell‑off in INFY and related IT stocks, while AI‑focused segments may retain investor interest.
Market read
First‑hand earnings and guidance update for a large‑cap IT services company; directly influences stock price and sector sentiment.
What to watch
Strong AI revenue growth (29% QoQ) could offset slower overall revenue, supporting longer‑term upside.
Background
Infosys is India's second‑largest IT services provider, listed in the U.S. as ADR INFY. The quarter showed modest profit growth but a notable slowdown in overall revenue growth, prompting a guidance downgrade.
Ticker impact
Infosys reported Q2 net profit of Rs 7,823 crore and cut FY27 revenue guidance to 1‑2% constant‑currency, down from 1.5‑3%, marking the first public disclosure of the guidance reduction.
downward pressure as investors price in weaker revenue outlook
Revenue guidance is a material metric for a large‑cap IT services firm; the cut is unexpected and sizable, driving near‑term downside.
Market effects
May weigh on broader Indian IT services sector and related ADRs.
Potentially drags Indian equity indices, especially the NIFTY IT sub‑index.
Could affect global tech exposure funds holding Infosys ADRs.
Counterpoint
If AI revenue acceleration continues, the guidance cut may be temporary and present a buying opportunity.
Key entities
- CompanyInfosys
Indian IT services firm, ticker INFY (ADR).
- ExecutiveSalil Parekh
CEO and Managing Director of Infosys, quoted on AI strategy.
