The guidance cut to 1%-2% from 3%-4% is the key negative signal, but the $5.2B deal TCV and 29% QoQ AI revenue growth provide offsetting positives. Watch next quarter's revenue growth and deal pipeline conversion to see if the guidance revision proves conservative or if further cuts are needed.
Price Chart
Executive Summary
Infosys reported Q2 FY27 revenue of $5,145M (+1.5% YoY CC) and EPS of $0.20, in line with consensus. Large deal TCV was $5.2B (62% net new), including a mega deal >$2B. AI revenue reached 10.5% of total, growing 29% QoQ. FY27 revenue guidance was revised to 1%-2% (from 3%-4% previously), while operating margin guidance was retained at 20%-22%. The guidance cut signals near-term headwinds, partially offset by strong deal wins and AI momentum.
Key Financial Metrics
Key Facts
- Q2 FY27 revenue $5,145M, +1.5% YoY CC, +1.2% QoQ CC
- Basic EPS $0.20, flat YoY (decline of 0.3% in USD terms)
- Operating margin stable at 21.0%
- Large deal TCV $5.2B, 62% net new, including a mega deal >$2B
- AI revenue 10.5% of total, up 29% QoQ
- Free cash flow $928M, down 15.7% YoY; FCF conversion 113.3% of net profit
- FY27 revenue guidance revised to 1%-2% CC (from 3%-4% previously)
- FY27 operating margin guidance retained at 20%-22%
- Interim dividend of ₹26/share, up 13% YoY
Financial Impact
Revenue $5,145M, EPS $0.20, FCF $928M, large deal TCV $5.2B
Risk Factors
- FY27 revenue guidance cut to 1%-2% signals slower near-term growth
- FCF declined 15.7% YoY, potentially pressuring capital returns
- Macro uncertainty and client spending caution could weigh on deal conversion
- Currency volatility and immigration policy changes in the US remain headwinds
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-prn-302918081 |
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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