Infosys Reports Q2 Earnings with Revised Growth Forecast
Infosys announces a 6.2% profit increase but lowers FY27 revenue growth guidance to 1%-2%.
Infosys reported a consolidated net profit of ₹7,823 crore for Q2 2026.
The company revised its FY27 revenue growth forecast down to 1%-2%.
An interim dividend of ₹26 per share was approved, with a record date of November 3.
Infosys, the prominent IT firm based in Bengaluru, revealed its earnings for the quarter ending September 2026 on October 24. The company achieved a year-on-year profit growth of 6.2%, reporting a net profit of ₹7,823 crore compared to ₹7,364 crore in the same quarter last year. Despite this positive result, Infosys announced a significant reduction in its full-year revenue growth forecast, disappointing investors who had anticipated a smaller adjustment.
The revised guidance for FY27 now stands at 1%-2%, a drop from the previous estimate of 1.5%-3%. This change follows earlier adjustments made in June, where the forecast was lowered due to macroeconomic uncertainties and demand assessments. CFO Jayesh Sanghrajka cited competitive pressures and customer expectations for productivity as key factors influencing this revision. He noted, "We are seeing pricing pressures on intense competition and customers asking for higher productivity."
In terms of revenue, Infosys reported a consolidated revenue of ₹49,244 crore for the quarter, marking a 10.2% increase from ₹44,490 crore year-on-year. AI-related services contributed significantly, accounting for 10.5% of total revenue and showing a quarter-on-quarter growth of 29%. The company secured large deals worth $5.2 billion during the quarter, including a notable deal exceeding $2 billion.
The board of Infosys also approved an interim dividend of ₹26 per share, which is 500% of the stock's face value. The record date for shareholders eligible for the dividend is set for November 3, with payments expected to be completed by November 11. Following the earnings announcement, Infosys shares closed 0.3% higher at ₹1,154.50, although its American depositary receipts fell by 6.5% to $12.35.
Looking ahead, analysts are closely monitoring the stock's performance, particularly its resistance level at ₹1,195. While some experts suggest accumulating shares on dips, they caution against new short-term positions until a breakout above this resistance is confirmed. The ongoing challenges in the IT sector, including revenue guidance and client spending, will continue to shape investor sentiment as they navigate the evolving landscape of the industry.
