The lowered FY27 revenue guidance to 1%-2% constant currency is the key negative signal, implying a material slowdown from prior trajectory. Monitor upcoming quarters for execution against the large deal pipeline and whether AI revenue growth can offset broader IT spending weakness.
Price Chart
Executive Summary
Infosys reported Q2 FY27 results with modest revenue growth of 1.5% YoY in constant currency to $5,145 million, stable operating margin at 21.0%, and a large deal TCV of $5.2 billion (62% net new). The company revised FY27 revenue guidance down to 1%-2% constant currency growth, indicating a deceleration from prior expectations. Net profit declined 0.3% YoY on a per-share basis, and free cash flow fell 15.7% YoY. The lowered guidance and declining EPS/FCF overshadow the strong deal wins and AI revenue growth.
Key Facts
- Q2 FY27 revenue of $5,145 million, +1.3% YoY reported, +1.5% constant currency
- FY27 revenue guidance revised to 1%-2% constant currency growth (from prior 3%-6% per 20-F context)
- Operating margin stable at 21.0%, within 20%-22% guidance range
- Basic EPS of $0.20, down 0.3% YoY
- Free cash flow of $928 million, down 15.7% YoY
- Large deal TCV of $5.2 billion, 62% net new, including a mega deal over $2 billion
- AI revenue grew 29% sequentially to 10.5% of total revenue
- Interim dividend increased 13% to 26 INR per share
- Goodwill and intangible assets increased to $2,013 million from $1,576 million at March 2026
Financial Impact
Revenue growth deceleration to 1%-2% constant currency for FY27, down from ~4.6% in FY26; EPS declined 0.3% YoY; FCF declined 15.7% YoY
Risk Factors
- Further revenue guidance cuts if macro/IT spending environment weakens
- FCF decline may pressure capital return programs
- Integration risk from acquisitions (goodwill up 27% from March 2026)
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 6-K Filing (Primary) | 0001067491-26-000042 |
| Exhibit: exv99w02.htm | 0001067491-26-000042 |
| Exhibit: exv99w01.htm | 0001067491-26-000042 |
| Document: 0001067491-26-000042-index-headers.html | 0001067491-26-000042 |
| Document: 0001067491-26-000042-index.html | 0001067491-26-000042 |
| Document: 0001067491-26-000042.txt | 0001067491-26-000042 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 23, 2026 2d ago | Institutional Cluster | $12.38 | awaiting T+20 | — | $12.35 (−0.20%) |
Oct 23, 2026 2d ago | 6-K | $12.59 | awaiting T+20 | — | $12.35 (+1.91%) |
Oct 23, 2026 2d ago | Press Release | $12.20 | awaiting T+20 | — | $12.35 (+1.23%) |
Oct 19, 2026 7d ago | Press Release | $12.20 | awaiting T+20 | — | $12.35 (+1.23%) |
Oct 13, 2026 13d ago | 6-K | $11.40 | awaiting T+20 | — | $12.35 (+8.33%) |
Oct 1, 2026 24d ago | Press Release | $11.35 | awaiting T+20 | — | $12.35 (+8.81%) |
Sep 30, 2026 26d ago | Press Release | $10.76 | awaiting T+20 | — | $12.35 (+14.78%) |
Aug 6, 2026 11w ago | Press Release | $12.36 $12.09 | ▼ −2.18% | ▼ −2.78% | $12.35 (−0.08%) |
Jul 28, 2026 12w ago | 6-K | $12.35 $12.03 | ▼ −2.59% | ▼ −5.97% | $12.35 (+0.00%) |
Jul 28, 2026 12w ago | 6-K | $12.35 $12.03 | ▼ −2.59% | ▼ −5.97% | $12.35 (+0.00%) |
US Market Status
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