Infosys Q2 net profit rises 13% YoY to Rs 7,364 crore; FY26 revenue guidance narrowed to 2-3%

Infosys Q2 Results LIVE

Infosys Ltd reported a 13.2 percent year-on-year rise in consolidated net profit to Rs 7,364 crore for the July-September quarter (Q2 FY26), driven by resilient margins, strong cash generation and steady deal momentum. The company also declared an interim dividend of Rs 23 per share, marking a 9.5 percent increase over the previous year.

Consolidated revenue grew 8.6 percent year-on-year to Rs 44,490 crore, while in constant currency terms, growth stood at 2.9 percent on-year and 2.2 percent sequentially. Operating margin came in at 21 percent, broadly stable on a year-ago basis.

Both net profit and revenue came above CNBC-TV poll estimates of Rs 7,266.5 crores and Rs 44142 crores respectively. On the operating margin front, however, it was a miss as the estimate was 21.3%.

The company has narrowed its FY26 revenue growth guidance at the lower end at 2–3 percent in constant currency and retained its operating margin band at 20–22 percent, reflecting confidence in execution despite an uncertain macro environment.

As of Q1, revenue growth guidance for the full year was 1-3 percent in CC.

Chief executive officer and managing director Salil Parekh said Infosys had delivered two consecutive quarters of strong growth, underscoring its market positioning and relevance to clients. “Strong deal wins, with 67 percent net new in Q2, reflect our deep understanding of clients’ priorities to deliver value from AI in this environment,” Parekh said, adding that Infosys’ AI-first strategy through its Topaz platform continues to unlock value at scale.

Large deal wins stood at $3.1 billion, up 29 percent YoY. Sequentially, it was down by 18.4 percent. Parekh noted that the company has recently closed a $1.6 billion mega deal but it happened after the quarter ended.

Chief financial officer Jayesh Sanghrajka described it as a robust all-round performance with “strong growth, resilient margins and very high cash generation”. He noted that free cash flow for the quarter rose 38 percent on-year to Rs 9,677 crore, amounting to 131 percent of net profit.

Infosys also announced a share buyback of Rs 18,000 crore during the quarter, in line with its capital allocation policy.

In terms of headcount addition, Infosys employee base grew by 8,203 sequentially, and attrition rate for the last twelve month (LTM) basis plunged 10 bps QoQ to 14.3 percent.

Infosys has hired about 12,000 freshers in H1FY26, and is on track to hire 20,000 freshers for the full year.