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Infosys Q2 Results: Profit jumps 13% YoY to Rs 7,364 crore, revenue up 9%
India’s tech giant Infosys Ltd has once again proven its strength in uncertain times. The company reported an impressive 13% year-on-year jump in net profit to Rs 7,364 crore for the second quarter of FY26. Revenue from operations climbed 9% YoY to Rs 44,490 crore, reflecting consistent growth despite a challenging global IT environment.
The Bengaluru-based IT leader also announced an interim dividend of Rs 23 per share, sending a strong signal of confidence to its investors.
Infosys Delivers Strong Q2 Growth: Revenue up 9%
Infosys’ steady revenue growth showcases its balanced business model and adaptability. In constant currency terms, revenues grew by 2.9% YoY and 2.2% QoQ, indicating solid sequential performance.
CEO Salil Parekh expressed satisfaction, saying, “We have now delivered two consecutive quarters of strong growth, demonstrating our unique market positioning and client relevance.”
This statement perfectly sums up the company’s strategic execution amid global IT spending slowdowns and AI-driven transformations.
Operational Performance: Margins and Profits Stay Strong
Operating margins saw a slight dip of 10 basis points YoY, standing at 21%, but the company’s overall profitability remained robust. Gross profit improved 9% YoY to Rs 13,690 crore, supported by better utilization and project mix.
Infosys’ free cash flow generation stood strong at $1.1 billion, and the company added 8,203 employees in the quarter – a positive sign of business expansion and future project growth.
Deal Wins Worth $3.1 Billion Reflect Market Confidence
Infosys closed $3.1 billion in deal wins, with 67% being net new contracts. That’s a major confidence boost from clients who trust Infosys to lead their AI and digital transformation journeys.
Parekh noted, “This reflects our deep understanding of clients’ priorities to deliver value from AI in this environment.”
This focus on AI and automation is positioning Infosys as a key player in shaping future-ready enterprises, especially in a world racing toward digital-first ecosystems.
Segment-wise Performance: Manufacturing and Financial Services Lead
Not all segments grew evenly, but the overall picture remains positive.
- Manufacturing division revenues rose 6.6% YoY, showing recovery in industrial and automotive clients.
- Financial services grew 5.4% YoY, a consistent performer for Infosys.
- Meanwhile, communications and life sciences faced declines of 2.5% and 10.5%, respectively, amid global market pressure.
The company’s diversified sector presence continues to act as a strong cushion against regional economic fluctuations.
Revised Guidance: Infosys Raises FY26 Outlook
In a confident move, Infosys revised its FY26 revenue guidance to 2–3% from the earlier 1–3%, keeping its operating margin target at 20–22%.
This upward revision signals optimism about the second half of FY26. Analysts say the company will now need slightly stronger growth in Q3 and Q4 to meet these expectations – but the trends are promising.
According to Incred Equities, “Although narrowing the guidance range was expected, our analysis suggests Infosys could even touch 3.5% YoY growth if Q3 and Q4 sustain momentum.”
AI Investments: The Heart of Infosys’ Future Strategy
According to The Economic Times news article infosys is betting big on AI-first initiatives. The company has been investing heavily in reskilling its workforce and integrating AI into all aspects of operations.
Parekh highlighted, “Our proactive investments in building a human+AI workplace ensure our people are ready to thrive in the new digital era.”
This forward-looking strategy gives Infosys a strong edge over competitors, especially in client-facing automation and data-driven solutions.
Infosys Outlook: Stable Growth, Confident Future
For the first half of FY26, Infosys reported:
- Revenue: Rs 86,769 crore, up 8% YoY
- Constant currency growth: 3.3%
- Operating margin: 20.9%
The company’s stable margins and rising deal pipeline indicate sustainable long-term growth. Infosys’ strong cash reserves and strategic investments make it a reliable performer amid economic uncertainties.
My Take: Infosys is Playing the Long Game
Infosys’ Q2 performance tells a bigger story – one of steady execution, digital leadership, and adaptability. In a market where many IT firms are struggling to maintain margins, Infosys has shown that smart investments in AI, cloud, and client relationships still pay off.
While growth may remain moderate in the short term, Infosys is clearly positioning itself for long-term success. Investors looking for a stable yet future-ready tech stock will find Infosys’ story reassuring.
Conclusion: A Confident Step into the AI Era
Infosys Q2 results show more than just numbers – they reflect resilience, innovation, and forward-thinking leadership. With strong deal wins, steady cash flows, and a focus on AI-driven growth, Infosys continues to prove why it remains one of India’s most trusted IT giants.
If this trend continues, FY26 might just mark the beginning of a stronger, smarter Infosys 2.0 – ready for the AI-powered decade ahead.
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Disclaimer: The views and recommendations above are those of individual analysts or brokerage companies, not US News Weeks. We advise investors to check with certified experts before making any investment decisions.
Source : The Economic Times - Infosys Q2 Results : Profit jumps 13%
✍️ Written by Nikhil Singh
Market & IPO Analyst | Business News Writer | Tech-Auto Observer
Nikhil has been tracking Indian IPOs, consumer brands, tech & automobile overview and financial trends since 2019. His writing style blends market insight with a relatable human voice — making complex data simple for everyday investors.
