Infosys:Differentiated AI strategy and a sharp focus on value unlock propels 29% sequential growth in AI revenues

PR Newswire

BENGALURU, India, Oct. 23, 2026

BENGALURU, India, Oct. 23, 2026 /PRNewswire/ -- Infosys (NSE: INFY) (BSE: INFY) (NYSE: INFY), a global leader in AI-first business consulting and technology services, delivered $5,145 million in Q2 revenues, year on year growth of 1.5% and sequential growth of 1.2% in constant currency. Operating margin was stable at 21.0%. EPS growth was 8.7% year on year in rupee terms. TCV of large deal wins was $5.2 billion, with 62% net new.

Infosys Logo

H1 revenues grew at 1.9% year on year in constant currency. Operating margin for H1 was at 21.0%.

"We had strong large deals of $5.2 billion, including a mega deal of over $2 billion, reinforcing our position as a trusted partner in the marketplace when clients embark on large and complex transformation programs. Our AI revenue was at 10.5% and grew 29% quarter-on-quarter. As enterprises move to AI adoption at scale, the strong growth in AI revenues is a recognition of our differentiated market positioning and client confidence," said Salil Parekh, CEO and MD. "We are advising some of the largest global enterprise on their AI strategy and continue to invest in deep domain and technology capabilities to bring new ideas and an integrated ecosystem to help businesses unlock AI value at scale," he added.

1.2% QoQ
1.5% YoY 

CC Growth

21.0% 

Operating
Margin

8.7% YoY

EPS Increase
(` terms)

$5.2 Bn

Large Deal TCV

(62% Net New)

$0.93 Bn

Free Cash Flow

(FCF)

10.5%

AI as a % of
Revenue

Guidance for FY 27:

Key highlights:

For the quarter ended September 30, 2026

  • Revenues in CC terms grew by 1.5% YoY and
    1.2% QoQ
  • Reported revenues at $5,145 million, growth of
    1.3% YoY
  • Operating margin was stable at 21.0%
  • Basic EPS at $0.20, decline of 0.3% YoY
  • FCF at $928 million, decline of 15.7% YoY; 
    FCF conversion at 113.3% of net profit

For the six months ended September 30, 2026

  • Revenues in CC terms grew by 1.9% YoY
  • Reported revenues at $10,227 million, growth
    of 2.1% YoY
  • Operating margin was stable at 21.0%
  • Basic EPS at $0.40, growth of 1.7% YoY
  • FCF at $1,883 million, decline of 5.1% YoY;
    FCF conversion at 114.9% of net profit

"We delivered operating margins of 21.0% in Q2 amidst heightened volatility. Focus on cost and operational efficiency measures while making the required investments, have led to stable margins," said Jayesh Sanghrajka, CFO. "Free cash flow of $928 million, representing 113.3% of net profit, underscores the financial strength of the business. The Board has announced an interim dividend of ₹26 per share, an increase of 13% from last year," he added.

Client Wins & Testimonials

Recognitions & Awards

Brand & Corporate

AI and Cloud Services

Key Digital Services

Industry & Solutions

Read more about our Awards & Recognitions here.

About Infosys

Infosys (NSE, BSE, NYSE: INFY) is a global leader in AI first business consulting and technology services. Over 325,000 of our people work to amplify human potential and create the next opportunity for people, businesses, and communities. As navigators of enterprise transformation, we enable businesses in 59 countries to unlock AI value at scale. With over four decades of experience in managing the systems and workings of global enterprises, we accelerate business transformation through our AI-first value framework, deep domain expertise, and our unique ability to orchestrate innovations from our AI-native partner ecosystem. Infosys is recognized as the fastest growing IT services brand globally, committed to being a well-governed, environmentally sustainable partner for our clients where deep talent expertise, in an inclusive workplace, help them navigate their next.

Safe Harbor

Certain statements in this release, including those concerning our future events, future growth prospects, our future financial or operating performance and our offerings and collaborations, are "forward looking statements" intended to qualify for the 'safe harbor' under the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on our current expectations, assumptions, estimates and projections about the Company, our industry, economic conditions in the markets in which we operate, and certain other matters. These forward-looking statements are subject to substantial known and unknown risks, uncertainties and other factors, that could cause actual results or outcomes to differ materially from those implied by such forward-looking statements. Important factors that may cause actual results or outcomes to differ from those implied by the forward-looking statements include, but are not limited to, risks and uncertainties regarding the execution of our business strategy, increased competition for talent, our ability to attract and retain personnel, increase in wages, investments to reskill our employees, our ability to effectively implement a hybrid work model, economic uncertainties and geo-political situations, technological disruptions and innovations such as artificial intelligence, the complex and evolving regulatory landscape including immigration regulation changes, particularly in the United States, our Environmental, Social, Governance ("ESG") vision, our capital allocation policy and expectations concerning our market position, future operations, margins, profitability, liquidity and capital resources, our corporate actions including acquisitions, cybersecurity matters, the outcome of pending litigation and the US government investigation, and the effect of current and future tariffs. These and additional factors that may cause actual results or outcomes to differ from those implied by the forward-looking statements are discussed in more detail in our US Securities and Exchange Commission filings including our Annual Report on Form 20-F for the fiscal year ended March 31, 2026. These filings are available at www.sec.gov. In light of these and other uncertainties, you should not conclude that the results or outcomes referred to in any of the forward-looking statements will be achieved. Infosys may, from time to time, make additional written and oral forward-looking statements, including statements contained in the Company's filings with the Securities and Exchange Commission and our reports to shareholders. The Company does not undertake to update any forward-looking statements that may be made from time to time by or on behalf of the Company unless it is required by law.

 

Infosys Limited and Subsidiaries 

Extracted from the Condensed Consolidated Balance Sheet under IFRS as at: 

 (In $ million)

Particulars

September 30, 2026

March 31, 2026

ASSETS



Current assets



Cash and cash equivalents

2,541

2,341

Current investments

1,436

1,365

Trade receivables

3,634

3,715

Unbilled revenue

1,733

1,633

Other current assets

1,691

1,858

Total current assets

11,035

10,912

Non-current assets



Property, plant and equipment and Right-of-use assets

2,069

2,057

Goodwill and other Intangible assets

2,013

1,576

Non-current investments

875

942

Unbilled revenue

224

183

Other non-current assets

844

776

Total non-current assets

6,025

5,534

Total assets

17,060

16,446

LIABILITIES AND EQUITY



Current liabilities



Trade payables

469

500

Unearned revenue

1,234

1,248

Employee benefit obligations

370

372

Other current liabilities and provisions

3,517

3,396

Total current liabilities

5,590

5,516

Non-current liabilities



Lease liabilities

516

634

Other non-current liabilities

565

456

Total non-current liabilities

1,081

1,090

Total liabilities

6,671

6,606

Total equity attributable to equity holders of the company

10,333

9,786

Non-controlling interests

56

54

Total equity

10,389

9,840

Total liabilities and equity

17,060

16,446

 

 

Extracted from the Condensed Consolidated Statement of Comprehensive Income under IFRS for:

(In $ million except per equity share data)

 

Particulars

3 months ended 
September 30,
2026

3 months ended 
September 30,
2025

6 months ended
September 30,
2026

6 months ended
September 30,
2026

Revenues

5,145

5,076

10,227

10,018

Cost of sales

3,547

3,516

7,028

6,933

Gross profit

1,598

1,560

3,199

3,085

Operating expenses:





   Selling and marketing expenses

260

254

531

512

   Administrative expenses

259

241

517

480

Total operating expenses

519

495

1,048

992

Operating profit

1,079

1,065

2,151

2,093

Other income, net of finance cost

77

100

168

210

Profit before income taxes

1,156

1,165

2,319

2,303

Income tax expense

337

325

680

654

Net profit (before non-controlling interests)

819

840

1,639

1,649

Net profit (after non-controlling interests)

817

839

1,637

1,647

Basic EPS ($)

0.20

0.20

0.40

0.40

Diluted EPS ($)

0.20

0.20

0.40

0.40

NOTES:

a)  The above information is extracted from the audited condensed consolidated Balance sheet and Statement of Comprehensive Income for the quarter and six months ended September 30, 2026, which have been taken on record at the Board meeting held on October 23, 2026.

b)  Revenue growth in reported currency includes the impact of currency fluctuations. Additionally, we calculate constant currency (CC) growth by comparing current period revenues in respective local currencies converted to US$ using prior period exchange rates and comparing the same to our prior period reported revenues.

c)  A Fact Sheet providing the operating metrics of the Company can be downloaded from www.infosys.com.

d)  As the quarter and six months ended figures are taken from the source and rounded to the nearest digits, the quarter figures in this statement added up to the figures reported for the previous quarter might not always add up to the six months ended figures reported in this statement.

IFRS-INR Press Release: https://www.infosys.com/investors/reports-filings/quarterly-results/2026-2027/q2/documents/ifrs-inr-press-release.pdf

Fact sheet: https://www.infosys.com/investors/reports-filings/quarterly-results/2026-2027/q2/documents/fact-sheet.pdf

 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/infosys-differentiated-ai-strategy-and-a-sharp-focus-on-value-unlock-propels-29-sequential-growth-in-ai-revenues-302918081.html

SOURCE Infosys