Infosys (INFYN) Q2 2027 Earnings Report
MX:INFYN Q2 2027 EPS Results
- Actual EPS
- MXN 3.77
- Consensus EPS
- MXN 3.77
- Beat/Miss
- Met expectations
- One Year Ago EPS
- MXN 3.72
MX:INFYN Q2 2027 Revenue Results
- Actual Revenue
- MXN 95.73B
- Expected Revenue
- MXN 95.17B
- Beat/Miss
- Beat by +MXN 564.64M
- YoY Revenue Growth
- +1.10%
Earnings Announcement Details
- Quarter
- Q2 2027
- Date
- 10/23/2026
- Time
- Before Open
- Conference Call
- Friday, October 23, 2026
Infosys's next earnings date is estimated for January 13, 2027, based on past reporting schedules.
Q2 2027 Earnings Call Audio
Q2 2027 Earnings Slide Deck
No slide deck is available for this earnings event.
Q2 2027 Earnings Call Summary
The call was cautiously positive. Current revenue growth was below expectations and guidance was reduced to 1%-2%, with macro uncertainty, softer volumes, pricing pressure, weak high-tech and retail demand, and second-half margin headwinds. However, these challenges were outweighed by 29% sequential AI revenue growth, AI revenue reaching 10.5% of total revenue, $5.2 billion of large deal wins with 62% net new, an $8.8 billion H1 large-deal book up 28% year-on-year, strong free cash flow, stable margins, and management's confidence in future growth from AI adoption and mega-deal conversion.
Infosys revised its FY 2027 revenue growth guidance to 1%-2% year-on-year in constant currency terms, with the lower end assuming further deterioration in macro and the upper end assuming improvements; operating margin guidance remains 20%-22%, effective tax rates for the year are expected to be in the range of 29%-30%, and the company’s target is approximately 20,000 freshers for FY 2027. H2 margins will be impacted by compensation hikes, softer revenue seasonality, continued sharing of AI-driven productivity benefits, and ramp-up of large deals, partly offset by initiatives under Project Maximus. The $2 billion-plus seven-year mega deal is expected to contribute over 1% growth for the company in FY 2028.
- AI Revenue Growth and ScaleAI revenue grew 29% sequentially and increased to 10.5% of total revenue from 8.2% last quarter. Management said AI revenue is new revenue, described year-on-year growth as very strong, and said clients are moving from experimentation toward enterprise-wide adoption.
- Strong Large Deal WinsInfosys won 19 large deals with total contract value of $5.2 billion, the second-highest quarterly TCV in the last five years, with 62% net new. The awards included an entirely net-new $2 billion-plus, seven-year mega deal expected to contribute over 1% growth in FY 2028, as well as a $1 billion renewal.
- Healthy Deal Pipeline and H1 BookingsH1 large deal wins totaled $8.8 billion, up 28% year-on-year, with 62% net new. Management said the large deal pipeline is healthy, has grown significantly over the last year, and includes additional mega deals.
- Solid Cash Generation and Balance SheetFree cash flow was $928 million for Q2, representing 113% of net profit. Infosys ended the quarter with $4.7 billion in cash and cash equivalents and a debt-free balance sheet.
- Stable Operating MarginQ2 operating margin was 21%, down only 0.1 percentage points sequentially, and H1 operating margin was 21%, at the midpoint of the guided range. Management maintained full-year operating margin guidance of 20%-22%.
- Earnings and Dividend GrowthQ2 EPS was INR 19.32, up 8.7% year-on-year. H1 EPS was INR 38.51, representing 11.7% year-on-year growth. The board announced an interim dividend of INR 26, an increase of 13% compared with last year.
- AI Capabilities, Partnerships, and Topaz Fabric InvestmentsInfosys said it continues to invest in deep domain and technology capabilities, Topaz Fabric, AI talent, certifications, and partnerships with frontier model companies. Topaz Fabric supports 15 different foundation models and is intended to help clients navigate between models, optimize token usage, and protect data in sovereign environments.
- Demonstrated AI Client OutcomesFor a food services company, an AI-enabled invoicing platform delivered 40% faster time to market, 80% less rework, and 30% more defects caught before go-live. For an education technology company, embedding AI agents into software modernization achieved a 40% effort reduction and a production-ready solution.
- Broad Strength Across Several VerticalsManagement reported strong traction in financial services, energy and utilities, parts of manufacturing, and healthcare. Financial services generated more than $3.5 billion of Q2 large deal signings, and financial services and EURS are expected to grow higher than the company average.
- Operational Improvements and Workforce ExpansionNet headcount increased by about 4,400 employees. Infosys hired about 13,000 freshers in H1, in line with its target of approximately 20,000 for FY 2027. Utilization including training improved 0.5 percentage points sequentially to 85.4%, while attrition declined to 12.7% from 13% sequentially.
- Working Capital ImprovementDSO was 64 days, down seven days from last year. DSO including unbilled revenue was 77 days, down 10 days year-on-year. Q2 yield on the cash investment balance was approximately 6.9%.
- AI Positioning and Client ConfidenceManagement said Infosys remains the preferred AI strategy and deployment partner for its top clients, is gaining market share where program economics are aligned with stakeholder interests, and is seeing AI included in almost every large transaction under consideration.
- Disciplined Contract SelectionManagement said it remains selective about contract economics and has maintained discipline on large deals, including declining or not pursuing opportunities where return expectations were not met. Signed large deals were described as having margin profiles similar to prior contracts.
- Mega Deal Transition Expected Without Current-Year Margin ImpactThe $2 billion-plus mega deal is a business transformation opportunity using AI across technology and operations. Management said there would be no real margin impact from the transition in the current year and that the deal involves no asset takeovers, although some people will be taken over.
- No AI-Driven Increase in Insourcing ObservedManagement said it has not seen a pattern of clients increasing insourcing because of AI. It also noted that, in some cases, clients are interested in having Infosys take on internally performed tasks and use AI to deliver them more efficiently.
MX:INFYN Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Jan 13, 2027 | 2027 (Q3) | 3.68- | 3.33 | ― | ― |
| Oct 23, 2026 | 2027 (Q2) | 3.773.77 | 3.72 | 1.50% (+0.06) | |
| Jul 23, 2026 | 2027 (Q1) | 3.733.70 | 3.53 | 4.74% (+0.17) | |
| Apr 23, 2026 | 2026 (Q4) | 3.704.27 | 3.68 | 16.16% (+0.59) | |
| Jan 14, 2026 | 2026 (Q3) | 3.733.33 | 3.53 | -5.79% (-0.20) | |
| Oct 16, 2025 | 2026 (Q2) | 3.683.72 | 3.53 | 5.26% (+0.19) | |
| Jul 23, 2025 | 2026 (Q1) | 3.533.53 | 3.34 | 5.56% (+0.19) | |
| Apr 17, 2025 | 2025 (Q4) | 3.513.68 | 4.27 | -13.91% (-0.59) | |
| Jan 16, 2025 | 2025 (Q3) | 3.553.53 | 3.31 | 6.74% (+0.22) | |
| Oct 17, 2024 | 2025 (Q2) | 3.603.53 | 3.34 | 5.56% (+0.19) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
