Infosys reports that AI's revenue has increased by 29% month-on-month
PR Newswire
1h ago
Ai Focus
Infosys Announces Second Quarter Results: Revenue of $5.145 Billion, Up 1.5% Year-on-Year and 1.2% Quarter-on-Quarter at Constant Exchange Rates; Operating Margin at 21.0%. The company stated that the total contract value of large transactions reached $5.2 billion and lowered its revenue growth forecast for fiscal year 2027 to 1% to 2%, while maintaining its profit margin forecast of 20% to 22%.
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Bengaluru, India, October 23rd / PRNewswire / — Infosys ( NSE : INFY ) ( BSE : INFY ) ( NYSE : INFY ) announced that its revenue for the second fiscal quarter ending September 30, 2026, was $5.145 billion, a year-on-year increase of 1.5% and a sequential increase of 1.2% at constant exchange rates. The operating margin remained stable at 21.0%. In rupees, earnings per share increased by 8.7% year-on-year. The total contract value of major transactions ( TCV ) was $5.2 billion, of which 62% was new business.

In the first half of the year, revenue increased by 1.9% year-on-year when calculated using a constant exchange rate, and the operating profit margin for the same period was 21.0%.

Infosys CEO and Managing Director Salil Parekh stated: "We have secured a large deal worth $5.2 billion, which includes a super-large transaction of over $2 billion. This further solidifies our position as a trusted partner for customers initiating large-scale, complex transformation projects. Our AI revenue accounted for 10.5%, representing a 29% quarter-on-quarter increase. With enterprises adopting AI on a large scale, the strong growth in AI revenue reflects our differentiated market positioning and customer confidence."

He added, "We are providing AI strategic consulting to some of the world's largest enterprises and continue to invest in deep industry and technical capabilities to bring new ideas and integrated ecosystems, helping companies to unleash the AI value in large-scale scenarios."

For the fiscal year 2027, the guidance provided by Infosys is as follows:

  • Calculated at a constant exchange rate, revenue growth is 1% to 2%.
  • Operating profit margin ranges from 20% to 22%.

Infosys Chief Financial Officer Jayesh Sanghrajka stated: "In an environment of increased volatility, our operating margin for the second fiscal quarter still reached 21.0%. By focusing on cost and operational efficiency measures, while making necessary investments, we have achieved stable profit margins."

He also stated that the free cash flow amounted to $928 million, which is equivalent to 113.3% of the net profit, reflecting the financial strength of the business. The board of directors has announced a mid-term dividend of 26 rupees per share, an increase of 13% compared to last year.

Customer Cooperation and Projects

  • Infosys collaborates with Mondelez International to drive their supply chain transformation through decision-making, data standardization, and intelligent enterprise workflows powered by AI. Mondelez International, the Global Vice President in charge of Digital Supply Chain, stated that the opportunity lies in combining people, processes, data, and technology to achieve meaningful business outcomes. As AI evolves into agentic AI, its potential is no longer limited to generating insights; it can now support more autonomous, agile, and intelligent workflows.
  • Infosys and Crocs, Inc have signed a 10-year strategic agreement to accelerate their IT transformation and support scalable global growth. Crocs's Chief Information Officer, Tom Britt, stated that the company aims to find a partner with both deep industry experience and a commitment to innovation and operational excellence. With the help of Infosys's mature delivery framework and advanced automation capabilities, Crocs will optimize operations, reduce costs, and achieve responsible expansion.
  • Infosys collaborates with Knorr-Bremse to accelerate the enterprise transformation empowered by AI. Knorr-Bremse, the Chief Digital Officer and Vice President of Transformation and Governance at IT, stated that the company is building a technology foundation for the future to support innovation and long-term value creation.
  • Infosys has expanded its cooperation with Mets and Group to drive the transformation of their IT architecture through AI. Mets The Chief Information Officer of Group, Kristiina Lammila, stated that this marks a new phase in the long-term partnership between the two parties, and that the company will simplify and transform its IT procurement model to meet the efficiency requirements of today's business environment.
  • Infosys has collaborated with NTN Corporation to drive their digital growth through seamless SAP cloud adoption. The head of the strategic department at NTN Corporation ICT, Kenji Kitazato, stated that this migration to SAP Commerce Cloud supported by Infosys has simplified IT operations, enhanced agility, and laid a solid foundation for future digital growth.
  • Infosys collaborates with Telia to drive the transformation of their network and network security operations. Telia Group CIO Hein M ü skens states that Infosys's experience in AI, automation, and telecommunications transformation makes it an ideal partner for this project.
  • Infosys has collaborated with KnitWell Group to develop the AI platform for customer interaction. KnitWell Group, the Chief Technology Officer, Jaap, van, and Riel stated that together they have created the Engage platform, which helps store employees to engage with customers in a more efficient and attractive manner, and they have already seen positive results.
  • Infosys Finacle has been selected by Investec and its digital banking transformation is being driven through the Finacle SaaS platform on Microsoft Azure. Lyndon Subroyen, the global head of digital and technology at Investec Group, stated that this marks an important step in their digital transformation, which will help the company to expand its scale, provide a more seamless and personalized experience, and operate with greater precision.

Awards and Recognition

Infosys has also received multiple industry recognitions in various categories such as brands, cloud services, digital services, and industry solutions, including being recognized as a leader among institutions such as __BJWKEEP_00004®, IDC, Everest Group, NelsonHall, and Constellation.

About Infosys

Infosys ( NSE, BSE, NYSE : INFY ) is a global enterprise dedicated to providing consulting services and technical support in the field of AI. The company claims that over 325,000 employees are committed to unleashing human potential and creating new opportunities for individuals, businesses, and communities. Infosys indicates that its services cover 59 countries, helping companies to realize the value of AI in large-scale scenarios.

Safe Harbor Statement

Certain statements in this press release, including those regarding future events, future growth prospects, future financial or operating performance, as well as the company's products and collaborations, are considered forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. These statements are based on the company's current expectations, assumptions, estimates, and projections and are subject to various known and unknown risks, uncertainties, and other factors. Actual results may differ significantly from those implied by these forward-looking statements. Relevant factors include, but are not limited to, the implementation of business strategies, competition for talent, recruitment and retention capabilities, wage increases, investment in employee retraining, the adoption of hybrid work models, economic uncertainties and geopolitical situations, technological changes such as artificial intelligence, changes in immigration regulations, ESG targets, capital allocation policies, market position expectations, future operations, profit margins, liquidity and capital resources, corporate actions such as mergers and acquisitions, cybersecurity issues, pending litigation, and the outcomes of investigations by U.S. government authorities, as well as the impact of current and future tariffs. For more information, please refer to the documents submitted by the company to the U.S. Securities and Exchange Commission, including the 20-F annual report for the fiscal year ending March 31, 2026.

Note:

  • The above information is excerpted from the audited consolidated balance sheets and comprehensive income statements for the quarters and half-years as of September 30, 2026, and was approved at the board of directors meeting on October 23, 2026.
  • Revenue growth calculated in the reporting currency includes the impact of exchange rate fluctuations; constant exchange rate growth, on the other hand, is determined by converting the current period's revenue in various local currencies to US dollars using the previous period's exchange rates, and then comparing it with the reported revenue from the previous period.
  • A factual brochure on company operational indicators can be downloaded under www.infosys.com.
  • Since quarterly and semi-annual data are derived from original sources and rounded, the sum of quarterly data may not necessarily match the semi-annual data exactly.

IFRS-INR Press Release: https :// www.infosys.com / investors / reports-filings / quarterly-results /2026-2027/ q2 / documents / ifrs-inr-press-release.pdf

Fact Sheet: https :// www.infosys.com / investors / reports-filings / quarterly-results /2026-2027/ q2 / documents / fact-sheet.pdf

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