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Infosys Q2FY26 Revenue Rises 2.9% YoY; AI-Led Transformation and $4.7 Billion in Deals Boost Growth

Topaz AI platform and strong client demand drive steady margins and future optimism

Shaina Ahuja by Shaina Ahuja
October 22, 2025
in Financial Results
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Infosys Q2FY26 Revenue Rises 2.9% YoY; AI-Led Transformation and $4.7 Billion in Deals Boost Growth
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Infosys Limited, one of India’s leading IT services and consulting firms, reported a 2.9% year-on-year rise in revenue for the second quarter of FY26, supported by strong demand for its digital and AI-driven transformation services. The company’s revenue for the quarter stood at $4,728 million (₹39,530 crore), with an operating margin of 21%.

Large deal momentum remained robust, with total deal wins worth $4.7 billion, including several multi-year mega contracts. The company also announced an additional $1.6 billion mega deal after the quarter closed, reinforcing its healthy business pipeline. These deals are expected to strengthen growth in the coming quarters, particularly in enterprise AI, cloud modernization, and digital transformation services.

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The company’s AI-first strategy is being driven by Infosys Topaz, its proprietary AI platform, which now powers more than 2,500 generative AI projects and 200 agentic AI deployments for global clients. Infosys has trained over 110,000 employees in generative AI and integrated tools like GitHub Copilot for 22,000 developers to boost productivity and efficiency across projects.

Infosys is also building a strong AI ecosystem through partnerships with global technology leaders such as Microsoft, Google Cloud, AWS, and Nvidia. These collaborations are helping clients adopt AI at scale, improve automation, and create new business models. The company reported that it has already unlocked $50 million in free cash flow from AI-led process automation.

Revenue growth was broad-based, with strong performance across manufacturing, energy, utilities, and BFSI sectors. The company’s digital revenues continued to account for a large share of its business, reflecting its successful shift toward high-value, innovation-led services.

Infosys maintained its FY26 revenue growth guidance at 2-3% in constant currency and retained its operating margin guidance of 20-22%. Management stated that its focus on large deal execution, cost efficiency, and AI-driven productivity will support sustained profitability going forward.

The company remains financially strong, with healthy cash generation and a consistent dividend payout policy. During the quarter, Infosys declared an interim dividend of ₹18 per share. Its strong balance sheet and zero-debt status continue to make it one of the most stable IT firms in the industry.

Founded in 1981, Infosys is a global leader in technology services, consulting, and next-generation digital solutions. With a presence in over 50 countries, the company serves Fortune 500 enterprises by helping them accelerate digital transformation through cloud, AI, data, and automation technologies.

With a growing AI portfolio, robust client demand, and sustained deal momentum, Infosys is positioning itself for steady growth in FY26 and beyond. The company’s focus on innovation and operational discipline continues to strengthen its reputation as one of the world’s most trusted technology partners.

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Shaina Ahuja

Shaina Ahuja

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