Key takeaways
- Infosys reports Q2 revenue growth of 8.6% year-on-year, reaching ₹44,490 crore.
- Achieves 13.1% EPS growth, driven by strong deal wins and robust cash flow.
- Maintains full-year revenue guidance of 2%-3% growth in constant currency.
- Total contract value of large deal wins reaches $3.1 billion, with 67% net new deals.
- CEO emphasizes the effectiveness of Infosys' AI-first strategy in enhancing client value.
Infosys reported strong Q2 results for FY 2025-26. Revenue rose 8.6% year-on-year to ₹44,490 crore. Operating margin stood at 21.0%, slightly lower than last year. Basic EPS grew 13.1% to ₹17.76, while free cash flow jumped 38% to ₹9,677 crore.
For the first half of the year, revenues reached ₹86,769 crore, up 8.1% YoY. Operating margin was 20.9%, basic EPS ₹34.47 (up 10.9%), and free cash flow ₹17,210 crore, a 6.5% rise.
The company’s free cash flow reached $1.1 billion, equivalent to 131.1% of net profit, while the total contract value (TCV) of large deal wins was $3.1 billion, 67% of which were net new deals. Employee headcount increased by 8,203 during the quarter.
CEO and managing director Salil Parekh said, “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.”
He explained that Infosys’ strategic focus on an AI-first approach over the past three years has equipped its workforce with the skills needed to excel in a human-plus-AI environment. He added that Infosys Topaz stands out by delivering significant value across every transformation initiative.
For the first half of the fiscal year, revenues grew 3.3% year-over-year in constant currency with an operating margin of 20.9%. Infosys maintained its full-year guidance with expected revenue growth of 2%-3% in constant currency and an operating margin range of 20%-22%.
“We had robust all-round performance in Q2 - strong growth, resilient margins, very high cash generation and 13.1% EPS growth year on year in rupee terms,” said chief financial officer Jayesh Sanghrajka.
He also highlighted that, following the company’s Capital Allocation Policy, Infosys declared a share buyback worth ₹18,000 crores for the quarter, along with an interim dividend of ₹23 per share, marking a 9.5% rise compared to the previous fiscal year.
Highlighted client wins include ABN AMRO’s upgrade of its lending process using the nCino platform. According to Hans-Willem Giesen, IT Lead–Credits at ABN AMRO, the solution will make operations more efficient, improve how collateral is managed, and give customers a faster and clearer experience.
Collaborations include Infosys working with Mastercard on cross-border payments, Sunrise on AI-driven IT transformation, Telstra on AI-powered cloud solutions, and other partners on digital workplace and AI efficiency initiatives.
The company received numerous awards for sustainability, inclusion, and leadership in AI and digital services, including recognition in Gartner, IDC MarketScape, and Constellation ShortList reports.
