EL7.AI
StocksMedium•23 October 2026•
3 min read

Infosys Reports $5.145 Billion in Revenue, Cuts Fiscal-Year Growth Forecast to 1%-2%

Key Facts

1Infosys reported revenue of $5.145 billion in the quarter ended September 30, 2026.
2AI revenue grew 29% quarter on quarter and accounted for 10.5% of revenue.
3The company cut its fiscal 2027 revenue growth forecast to 1%-2% in constant currency.
4Free cash flow was $928 million, down 15.7% year on year.
5The board declared an interim dividend of 26 rupees per share, up 13% from the previous year.

Infosys reported revenue of $5.145 billion in the second quarter ended September 30, 2026, up 1.5% year on year and 1.2% sequentially in constant currency, according to a company statement. The figures showed a slowdown from the same quarter of the previous fiscal year, when revenue was $5.076 billion, up 2.9% year on year and 2.2% sequentially in constant currency. The company cut its fiscal 2027 revenue growth forecast to a range of 1%-2% in constant currency. It kept its operating-margin forecast at 20%-22%. The guidance puts limited growth in the overall business alongside rapid expansion in AI activity.

Infosys said AI revenue accounted for 10.5% of total quarterly revenue after rising 29% from the previous quarter. Chief Executive Salil Parekh said the company closed large deals worth $5.2 billion, including a mega deal exceeding $2 billion. Parekh described the deals as "strong" and linked AI revenue growth to the company's positioning and customer confidence. The figures point to a growing AI contribution within the company, but come alongside overall revenue growth of 1.5% year on year in constant currency. In its fiscal 2026 annual report, Infosys said AI-led programs had been implemented at 90% of its top 200 clients.

Before the results announcement, analysts' average estimate for quarterly revenue was 491.32 billion rupees, according to data compiled by LSEG and cited by Reuters. Reuters reported that Infosys slightly exceeded those estimates. It pointed to support for demand from energy and utilities clients, along with increased corporate spending on AI services. That puts revenue above the average forecast, while its year-on-year growth in constant currency remained below the rate in the same period a year earlier. In the second quarter of fiscal 2026, the company had reported year-on-year growth of 2.9% and sequential growth of 2.2% in constant currency.

Free cash flow was $928 million in the quarter, down 15.7% year on year, according to an Infosys statement. The company said free cash flow was 113.3% of net profit. On costs, the chief financial officer said cost-control measures and improved operating efficiency, while continuing necessary investments, helped stabilize margins amid high volatility. The company kept its fiscal-year operating-margin forecast at 20%-22%, alongside the lower revenue-growth range. The board declared an interim dividend of 26 rupees per share, up 13% from the previous year.

Infosys set January 13, 2027, as the date for announcing results for the quarter ended December 31, 2026, and scheduled an investor call for the same day. The upcoming results will be the first regular update after the company cut its fiscal-year revenue growth forecast to 1%-2% in constant currency. The operating-margin forecast range remains 20%-22% under current guidance. In the second quarter of fiscal 2027, the company reported quarter-on-quarter AI revenue growth of 29%. It also said AI programs had reached 90% of its top 200 clients in fiscal 2026.