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Why it matters
Infosys employs over 3.3 lakh people and is held by millions of small investors and mutual funds, so its outlook matters well beyond the company. A lower growth forecast points to pricing pressure across Indian IT as clients use AI to demand more work for less money. Shareholders on the books on 3 November get ₹26 a share.
Infosys, India’s second-largest IT services company, reported a 6.2% rise in net profit to ₹7,823 crore for the July to September quarter on Friday, 23 October 2026, but cut its revenue guidance for the financial year 2026-27 (FY27) for the second time in three months. The Infosys Q2 results also brought an interim dividend of ₹26 a share, up from ₹23 a year ago. The weaker outlook is what investors focused on: Infosys shares listed in the US fell about 6% in early trading after the announcement.
Infosys Q2 results in numbers
In the Infosys Q2 results, revenue from operations came in at ₹49,244 crore for the quarter that ended on 30 September, against ₹44,490 crore a year earlier, a rise of about 10.7%, Financial Express reported. Against the June quarter, rupee revenue grew 2.1%. Net profit a year ago was ₹7,364 crore, Moneycontrol reported.
Measured in dollars, revenue was $5,145 million, up 1.3% from the previous quarter, according to the business channel CNBC-TV18. A poll of analysts by the channel had expected $5,151 million, so the miss was small. In constant currency terms, which strip out the effect of exchange rate swings, sequential growth was 1.2%, against the 1.4% the market had pencilled in.
Operating profit before interest and tax (EBIT) was ₹10,330 crore. The EBIT margin, the share of revenue left as operating profit, slipped to 21% from 21.1% in the June quarter. Analysts had expected 21.3%.
Some numbers were stronger. Large deal wins reached $5.2 billion, up 68% from a year ago, and included one mega deal worth more than $2 billion, CNBC-TV18 reported. About 62% of that value was net new business rather than renewals. Revenue from artificial intelligence (AI) work made up 10.5% of the total, which crossed ₹5,000 crore for the quarter.
Why Infosys cut its FY27 revenue guidance again
Infosys now expects revenue for FY27, the year ending March 2027, to grow 1% to 2% in constant currency. In July it had said 1.5% to 3%, and in April it had started the year at 1.5% to 3.5%. So the top of the range has come down from 3.5% to 2% in six months. The operating margin forecast of 20% to 22% stays unchanged.
Chief Financial Officer Jayesh Sanghrajka linked the revenue guidance cut to pricing. “We are seeing pricing pressures on intense competition and customers asking for higher productivity. That’s reflecting in our revised guidance,” he said, according to Moneycontrol. Most analysts had expected a smaller cut, to 1.5% to 2.5%, the website reported.
The pressure comes from the way AI is changing how clients pay. More customers are tying fees to productivity gains delivered by technology rather than to the hours that engineers bill, Reuters reported, and Indian firms have had to offer steep discounts. Reuters described the domestic IT industry as worth $315 billion.
Chief Executive Salil Parekh pointed to the AI side of the business, which grew faster than the company as a whole. “As enterprises move to AI adoption at scale, the strong growth in AI revenues is a recognition of our differentiated market positioning and client confidence,” he said, Financial Express reported.
Infosys dividend: ₹26 a share and the record date
The board approved an interim Infosys dividend of ₹26 per share for FY27, about 13% more than the ₹23 paid at the same point last year. The record date, the day on which a shareholder must hold the stock to qualify, is 3 November, and the payout is due on 11 November, according to Financial Express. The company put the total cash outgo at about ₹10,531 crore.
For a small investor, that works out to ₹2,600 for every 100 shares. At Friday’s closing price of ₹1,153.80, the interim payout alone is worth a little over 2% of the share price.
Infosys shares had a rough year before these numbers. It ended Friday’s session little changed, but it is down 29% so far in 2026, CNBC-TV18 reported. The results came after market hours, so trading in India will show the first reaction on Monday, 26 October. In the US, the company’s American Depositary Receipt (ADR), a certificate that lets US investors trade Indian shares, was quoted at $12.40 before the market opened, down 6.2% from $13.22, Moneycontrol reported.
What it means for jobs and for the IT sector
Hiring held up. Infosys added 4,480 employees on a net basis during the quarter, taking its headcount to 3,32,542 from 3,28,062 in June. Voluntary attrition, the share of staff leaving on their own, eased to 12.7% from 13% in the June quarter and 14.3% a year ago, Financial Express reported. Women made up 39.8% of the workforce.
The guidance cut sets Infosys apart from its two bigger rivals this week. Tata Consultancy Services (TCS) and HCLTech both met revenue estimates, and investors bid up their shares on growing AI revenue, Moneycontrol reported. IT services exports are one of India’s largest sources of foreign earnings, so a slowdown at the big firms is watched closely, alongside other signs of how the wider economy is doing.
Infosys’s lower revenue guidance suggests the company expects a slow second half, from October to March. The AI work Parekh highlighted is still about a tenth of total revenue, while the pricing pressure the CFO described applies across the business. The quarter’s large deals, including the mega deal, will add revenue over several years rather than at once. The company’s quarterly results page carries the full filing.
Frequently asked questions
What is the Infosys dividend record date?
The record date for the ₹26 interim dividend is 3 November 2026, and the payment is due on 11 November, according to Financial Express.
What is Infosys's new FY27 revenue guidance?
1% to 2% growth in constant currency for the year to March 2027, down from 1.5% to 3% in July. The operating margin forecast of 20% to 22% is unchanged.
How much profit did Infosys make in Q2 FY27?
Net profit was ₹7,823 crore for July to September 2026, up 6.2% from ₹7,364 crore a year earlier.
Why did Infosys cut its guidance?
CFO Jayesh Sanghrajka cited pricing pressure from intense competition and clients asking for higher productivity.