Infosys said on 23 October in its second-quarter earnings release from Bengaluru that AI revenue grew 29% sequentially, while it revised FY27 constant-currency revenue growth guidance to 1%-2%. The forecast was previously 1.5%-3%, Moneycontrol reported. The results cover the quarter ended 30 September 2026.
Key points
- Infosys said AI made up 10.5% of second-quarter revenue and AI revenue grew 29% quarter on quarter.
- FY27 constant-currency revenue growth guidance fell to 1%-2% from 1.5%-3%.
- The company put large-deal contract value at $5.2 billion, with 62% classed as net new.
- Infosys retained its 20%-22% operating margin forecast.
AI reaches 10.5% of Infosys revenue
AI accounted for 10.5% of revenue in the September quarter, Infosys said. Chief Executive and Managing Director Salil Parekh said the AI revenue growth reflected Infosys’s market positioning and client confidence as enterprises adopt AI at scale. He said the company was advising large enterprises on AI strategy and investing in industry and technology capabilities to support that work.
Parekh had previously said AI services could eventually account for almost half the company’s work, AI Affairs reported. The latest reported share of revenue covers the September quarter rather than that potential share of work.
Infosys said quarterly revenue was $5,145 million, up 1.5% year on year and 1.2% sequentially in constant currency. On a reported basis, revenue rose 1.3% year on year. For the six months ended 30 September, it reported $10,227 million in revenue, up 2.1% on a reported basis and 1.9% in constant currency.
The company has been incorporating AI software engineering tools into development work, including through a partnership with Cognition to deploy its Devin AI software engineer internally and for clients, Analytics India Magazine reported.
Large deals reach $5.2 billion
Infosys said large-deal total contract value reached $5.2 billion in the September quarter, with 62% classified as net new business. The equivalent contract value was $3.6 billion in the preceding quarter, Moneycontrol reported. Parekh said the latest total included one deal worth more than $2 billion.
Among the customer arrangements described in the earnings release, Infosys said it had entered a ten-year strategic agreement with Crocs covering its IT transformation. Crocs chief information officer Tom Britt said the work would use Infosys’s delivery and automation capabilities to improve operations and reduce costs.
Infosys also described collaborations with Mondelez International on supply-chain decision-making and with Knorr-Bremse on an AI-enabled enterprise transformation. It said its work with Metsä Group had expanded to cover changes to the company’s IT sourcing model. Those arrangements span different kinds of customer work from the ten-year Crocs agreement.
The earlier reduction in full-year guidance came in the June quarter, when Infosys narrowed its forecast to 1.5%-3% from 1.5%-3.5%, citing macroeconomic uncertainty and its assessment of demand for the rest of the financial year, Moneycontrol reported. The 23 October revision lowered both ends of that range.
Infosys holds margin forecast at 20%-22%
Infosys kept its FY27 operating margin guidance at 20%-22% and reported a second-quarter margin of 21.0%. Chief Financial Officer Jayesh Sanghrajka said cost and operational efficiency measures, alongside investment, had supported margins during the quarter.
The company said quarterly free cash flow was $928 million, down 15.7% year on year, and amounted to 113.3% of net profit. For the first six months of the financial year, it reported free cash flow of $1,883 million, down 5.1% year on year.
Infosys also reported an 8.7% year-on-year increase in earnings per share in rupee terms. Its board announced an interim dividend of ₹26 per share, which the company said was 13% higher than a year earlier.
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