Infosys reported a slight revenue beat for the second quarter of 2026 but lowered its full-year 2027 constant currency revenue growth guidance to 1%-2%. While sequential constant currency growth of 1.2% fell short of analyst expectations, the company maintained its operating margin guidance of 20%-22%. A major highlight was the robust deal activity, with large deal TCV reaching $5.2 billion, including a mega deal exceeding $2 billion. Additionally, the company's focus on AI is beginning to materialize, with AI-related revenues growing 29% sequentially to represent 10.5% of total revenue.
Key Highlights
- Revenue for the quarter reached $5.15 billion, a 1.3% increase year-on-year in reported terms.
- Total contract value (TCV) for large deals was strong at $5.2 billion, with 62% of this being net new business.
- Management significantly revised its FY2027 constant currency revenue growth guidance downward to 1%-2% from the previously anticipated higher range.
- Operating margins remained stable at 21.0%, supported by ongoing cost and operational efficiency measures.