Infosys Q2 Results, October 23, 2026: Profit Up 6.2%, FY27 Guidance at 1-2%

Infosys Q2 results landed on the afternoon of October 23, 2026, and the headline is a split screen. In rupees, the quarter looks healthy: consolidated net profit rose 6.2% year-on-year to ₹7,823 crore and revenue grew 10.7% to ₹49,244 crore. In dollars, the currency Infosys actually runs its business in, revenue grew just 1.3% to $5,145 million and net profit slipped 2.5% to $817 million. The gap between the two is mostly the weaker rupee. All figures below are IFRS consolidated numbers from the board meeting outcome, fact sheet and press release Infosys filed with NSE.

Infosys Q2 results in numbers

• Revenue: ₹49,244 crore, up 10.7% from ₹44,490 crore a year ago and up 2.1% from ₹48,211 crore in the June quarter.
• Constant currency growth: 1.5% year-on-year and 1.2% quarter-on-quarter.
• Net profit: ₹7,823 crore, up 6.2% year-on-year and 0.7% sequentially.
• Operating margin: 21.0%, the same as a year ago and marginally below 21.1% in Q1.
• Basic EPS: ₹19.32, up 8.7% from ₹17.76.
• Large deal TCV (total contract value): $5.2 billion, with 62% of it net new business.

Guidance: 1% to 2% for the full year

This is the line the market will chew on. Infosys now guides for FY27 revenue growth of 1% to 2% in constant currency, which the press release describes as a revision, while keeping its operating margin band at 20% to 22%. First-half constant currency growth was 1.9%. In plain terms, the company is not expecting the second half to be much stronger than the first.

The bright spot management wants us to focus on is deal flow. CEO Salil Parekh said the $5.2 billion of large deals included a mega deal of over $2 billion. He also said AI-related revenue made up 10.5% of the total and grew 29% over the previous quarter. Those are company-reported figures, and the filing does not break down how AI revenue is defined.

Where growth came from, and where it didn’t

The vertical mix tells a mixed story. In constant currency terms, compared with the same quarter last year:

• Life Sciences grew 32.5% and now accounts for 8.4% of revenue.
• Energy, Utilities, Resources and Services grew 7.3%.
• Financial Services, the biggest vertical at 28.0% of revenue, grew 2.1%.
• Hi-Tech fell 17.3% and Retail fell 7.7%.

By geography, North America, still 54.6% of revenue, declined 1.5% in constant currency, while Europe grew 4.6%. When your largest market shrinks, the overall number struggles to move, and that is roughly what happened here.

Cash, people and the dividend

Free cash flow was ₹8,898 crore, down 8.1% from a year earlier, though it still came to 113.5% of net profit. The board declared an interim dividend of ₹26 a share, up 13% from ₹23 last year. The record date is November 3, 2026, and the payout is on November 11.

Headcount went up. Total employees stood at 3,32,542 at the end of September, compared with 3,28,062 in June. Voluntary attrition on a trailing twelve-month basis eased to 12.7% from 13.0% in the previous quarter. Active clients rose to 2,060, and the number of clients billing over $100 million a year went to 42 from 41.

What we’d watch next

The rupee is flattering the reported numbers right now, so we’d look at dollar and constant-currency figures first. The real test for Infosys is whether those large deals turn into revenue fast enough to beat the low end of a 1% to 2% guidance band. Compare this with the Coforge Q2 numbers from the same day to see how a mid-tier IT company is doing differently. For a refresher on reading a results filing, see our guide on how to analyse quarterly results. Infosys also posts its full results pack on its investor relations page.

Disclaimer: This article is for information and education only and is not investment advice. Please do your own research or consult a SEBI-registered adviser before making investment decisions.