Infosys Q2 results: Net profit rises over 13% YoY; revises revenue guidance for FY26

The company's revenue in the July-September period gained 8.55% year-on-year (YoY) to ₹44,490 crore from ₹40,986 crore seen in the year-ago period.

Further, revenues in the first half of the current financial year (H1 FY26) grew at 3.3% YoY in constant currency, while the operating margin for H1 was at 20.9%.

The IT firm’s operating margin was at 21.0% in Q2 FY26, while free cash flow generation came in at $1.1 billion, 131.1% of net profit.

The total contract value (TCV) of the large deal was $3.1 billion, with a net new of 67% during the quarter.

Earnings Before Interest and Tax (EBIT) came in at ₹9,353 crore, marking a sequential growth of 6.25%, though slightly below the expected ₹9,385 crore. The EBIT margin for the quarter held steady at 21%, up from 20.8% in the June quarter.

The Bengaluru-based company has declared an interim dividend of ₹23 per equity share, with October 27, 2025, as the record date and November 7, 2025, as the payout date.

“We have now delivered two consecutive quarters of strong growth, demonstrating our unique market positioning and client relevance. Strong deal wins, with 67% net new in Q2, reflect our deep understanding of clients’ priorities to deliver value from AI in this environment,” said Salil Parekh, CEO and MD, Infosys.

“Our proactive investments, over the last three years, in embracing an AI-first culture within Infosys has ensured that our people are reskilled to thrive in a human+AI workplace. Infosys Topaz’s differentiated value proposition is unlocking value at scale in every transformation program” he added.

Infosys has revised its FY26 revenue guidance to 2%-3% and margin guidance retained at 20%-22%.

Infosys buyback

The Board has also approved an ₹18,000 crore buyback of 10 crore equity shares (about 2.41% of total capital) at ₹1,800 per share, subject to shareholder approval via postal ballot.

“The buyback offer, if approved by shareholders, would comprise a purchase of 10,000,000 equity shares, comprising approximately 2.41% of the total paid-up equity share capital of the company as of June 30, 2025 (on a standalone basis) at a price of ₹1,800 per equity share,” Infosys said in a statement.

Infosys revenue mix

In the second quarter of the current fiscal year, Infosys earned 27.7% revenue from the financial services vertical, manufacturing contributed 16.5%, the energy, utilities, resources, and services segment added 13.4%, retail added 12.7%, and communication contributed 12.1% to the revenue mix.

As far as geographies are concerned, Infosys earned 56.3% revenue from North America, 31.7% from Europe, 8.9% from the rest of the world, and 3.1% from the Indian market.

The company had a total of 1,896 active clients, with the top 25 clients adding 35.2% towards the company's revenue.

In Q2 FY26, Infosys’ employee headcount increased by 8,203. It has a total workforce of 331,999 employees, with 39.5% being women employees.

Some of the key deals in Q2 FY26

• In the reporting quarter, Infosys transformed ABN AMRO’s lending process with nCino platform implementation by consolidating multiple legacy systems into a single, unified platform.

• The IT major collaborated with Mastercard to offer financial institutions enhanced access to Mastercard Move, its portfolio of money movement capabilities, and thereby scale cross-border payments.

• The Bengaluru firm also extended its strategic collaboration with Sunrise to accelerate its IT transformation, with a strong focus on data security, operational agility, and future AI integration.

• In the September quarter, Infosys announced a joint venture with Telstra, in Australia, by acquiring 75% of the shareholding in Versent Group, a wholly owned subsidiary of Telstra Group, to propel AI-enabled cloud and digital solutions for enterprises.

• Infosys collaborated with AGCO to deliver IT and HR operations transformation with an efficient and future-ready operational framework for growth.