Infosys, one of India's largest IT services exporters with over 325,000 employees across 59 countries, reports its Q2 FY27 results into a demand environment where client budgets remain skewed toward cost optimisation and AI. The print will speak to whether the trimmed 1.5%-3.0% constant-currency growth guidance holds, and how far the rupee's sharper depreciation and Project Maximus can lift margins before the October wage-hike tranche lands.
| Results date | October 23, 2026 |
|---|---|
| Quarter | Q2 FY 2026-2027 |
| Previous quarter revenue | $5,082 Mn (Rs. 48,211 Cr) |
| Previous quarter PAT | $819 Mn (Rs. 7,769 Cr) |
| Previous quarter EBITDA margin | 21.1% (operating margin) |
| Net debt (latest quarter) | Debt-free balance sheet; cash and investments of $3,916 Mn (Rs. 37,065 Cr) |
| Market cap | Rs. 471,247.08 Cr |
| CMP | Rs. 1,161.2 |
The Board of Directors meets on October 22-23, 2026, to approve the audited Q2/H1 FY27 results (Ind AS standalone and consolidated; IFRS for quarter and half year) and consider an interim dividend.
An investor/analyst call is scheduled for October 23, 2026, following the results announcement.
The quarter's central test is whether Infosys can hold to the FY27 constant-currency revenue guidance of 1.5%-3.0% that was cut at the July 23, 2026 call, with the industry demand pool stabilising but shallow — NASSCOM's latest print showed Indian tech revenues up just 1% QoQ, and top-tier firms' aggregate revenue grew only 0.1% QoQ in Q1 FY27. On margins, the setup is tailwind-heavy relative to Q1's 21.1% operating margin: the rupee weakened roughly 2% from end-June to end-September/early October (a larger move than Q1's bridge item of +70 bps from currency), the Q1 program-termination impact of -40 bps was fully absorbed with no follow-through in Q2, and Project Maximus plus higher utilization of 84.9% remain tailwinds. Offsets include the ~50 bps acquisition-related drag from Optimum Healthcare IT and Stratus integration and the -50 bps AI sales-and-marketing investment run-rate, while the October wage-hike tranche falls after September 30, so its direct impact lands in Q3 and Q4 on the 52.5% employee-cost ratio. AI remains the growth engine to track, with AI services revenue share rising from 5.5% in Q3 FY26 to 8.2% in Q1 FY27 and management guiding it to become a larger part of overall revenue, against AI-led pricing deflation in TCV-to-ACV conversion. The call will also be the first since the US DOL suspended Infosys' PERM visa applications on October 10, 2026 — a post-quarter overhang the company states is 'not anticipated to have a material impact' — and ahead of Ashiss Dash taking charge as MD & CEO on April 1, 2027.
FY27 guidance scorecard: Tracking the guidance set at the July 23, 2026 call into Q2 FY27.
Q2 margin bridge: currency vs wage and acquisition drags
AI revenue share and large-deal conversion
US DOL PERM suspension, CEO transition and capital returns
At the July 23, 2026 call, Infosys lowered FY27 constant-currency revenue growth guidance to 1.5%-3.0% from 1.5%-3.5%, citing a one-off client program termination, softer volumes, increased client demand for productivity, and competitive pricing. The CFO noted the company expected a stronger AI-productivity impact and the competitive landscape became more intense than anticipated in April.
AI services revenue rose from 5.5% of total revenue in Q3 FY26 to 8.2% in Q1 FY27 — a 2.7 percentage-point rise in two quarters, growing at double-digit QoQ for several quarters. Management has said AI-led revenues are expected to become a larger part of overall revenue in coming quarters.
No — management clarified that both the European automotive client ramp-down and the EURS program termination were not AI-related, with one a commercial decision and the other a client reason. The program termination carried a -40 bps margin impact in Q1, fully absorbed with no follow-through expected in Q2.
Infosys retained its FY27 operating margin guidance of 20%-22%, and Q1 FY27 printed at 21.1%, up 20 bps sequentially. The CFO cited currency as a tailwind and Project Maximus working well, against headwinds from wage hikes, ~50 bps of acquisition-related impact, and AI sales-and-marketing investment.
The US Department of Labor suspended new and pending PERM applications by certain companies including Infosys on October 10, 2026, with no end date announced. The company states the suspension is 'not anticipated to have a material impact' and notes only a minority of its US workforce requires immigration sponsorship.