Second consecutive quarter of strong performanceRevenue growth of 2.2% sequentially in Q2 and 3.3% in H1 in CC; Large deal TCV at $3.1 Bn and FCF at $1.1 BnFY26 revenue guidance revised to 2%-3% and margin guidance retained at 20%-22%
BENGALURU, India, Oct. 16, 2025 /PRNewswire/ -- Infosys (NSE: INFY) (BSE: INFY) (NYSE: INFY), a global leader in next-generation digital services and consulting, delivered $5,076 million in Q2 revenues, year on year growth of 2.9% and sequential growth of 2.2% in constant currency. Operating margin was at 21.0%. Free cash flow generation was strong at $1.1 billion, 131.1% of net profit. TCV of large deal wins was $3.1 billion, with net new of 67%. Employee headcount increased by 8,203.
H1 revenues grew at 3.3% year over year in constant currency. Operating margin for H1 was at 20.9%.
"We have now delivered two consecutive quarters of strong growth, demonstrating our unique market positioning and client relevance. Strong deal wins, with 67% net new in Q2, reflect our deep understanding of clients' priorities to deliver value from AI in this environment," said Salil Parekh, CEO and MD. "Our proactive investments, over the last three years, in embracing an AI-first culture within Infosys has ensured that our people are reskilled to thrive in a human+AI workplace. Infosys Topaz's differentiated value proposition is unlocking value at scale in every transformation program," he added.
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2.2% QoQ2.9% YoY CC Growth |
21.0% Operating Margin |
13.1% YoYEPS Increase (₹ terms) |
$3.1 Bn Large Deal TCV(67% Net New) |
$1.1 BnFree Cash Flow |
Guidance for FY26:
Key highlights:
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For the quarter ended September 30, 2025 • Revenues in CC terms grew by 2.9% YoY and 2.2% QoQ • Reported revenues at $5,076 million, growth of 3.7% YoY • Operating margin at 21.0%, decline of 0.1% YoY and growth of 0.2% QoQ • Basic EPS at $0.20, growth of 7.9% YoY • FCF at $1,101 million, growth of 31.2% YoY; FCF conversion at 131.1% of net profit |
For the six months ended September 30, 2025 • Revenues in CC terms grew by 3.3% YoY • Reported revenues at $10,018 million, growth of 4.3% YoY • Operating margin at 20.9%, decline of 0.2% YoY • Basic EPS at $0.40, growth of 6.9% YoY • FCF at $1,985 million, growth of 2.7% YoY; FCF conversion at 120.4% of net profit |
"We had robust all-round performance in Q2 - strong growth, resilient margins, very high cash generation and 13.1% EPS growth year on year in rupee terms. We continue to make strategic investments to futureproof the business with a tight focus on execution, amidst high uncertainty," said Jayesh Sanghrajka, CFO. "In line with our Capital Allocation Policy, we have announced a share buyback for `18,000 crores during the quarter and an interim dividend of `23 per share, an increase of 9.5% over last fiscal," he added.
Client Wins & Testimonials
Recognitions & Awards
Brand & Corporate
® ®22nd Annual International Business Awards®AI and Cloud Services
®Key Digital Services
®®® ®®Industry & Solutions
Read more about our Awards & Recognitions here.
About Infosys
Infosys is a global leader in next-generation digital services and consulting. Over 320,000 of our people work to amplify human potential and create the next opportunity for people, businesses and communities. We enable clients in 59 countries to navigate their digital transformation. With over four decades of experience in managing the systems and workings of global enterprises, we expertly steer clients, as they navigate their digital transformation powered by cloud and AI. We enable them with an AI-first core, empower the business with agile digital at scale and drive continuous improvement with always-on learning through the transfer of digital skills, expertise, and ideas from our innovation ecosystem. We are deeply committed to being a well-governed, environmentally sustainable organization where diverse talent thrives in an inclusive workplace.
Visit www.infosys.com to see how Infosys (NSE, BSE, NYSE: INFY) can help your enterprise navigate your next.
Safe Harbor
Certain statements in this release concerning our future growth prospects, our future financial or operating performance, the McCamish cybersecurity incident, and the United States H-1B visa program are forward looking statements intended to qualify for the 'safe harbor' under the Private Securities Litigation Reform Act of 1995, which involve a number of risks and uncertainties that could cause actual results or outcomes to differ materially from those in such forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding the execution of our business strategy, increased competition for talent, our ability to attract and retain personnel, increase in wages, investments to reskill our employees, our ability to effectively implement a hybrid working model, economic uncertainties and geo-political situations, technological disruptions and innovations such as Generative AI, the complex and evolving regulatory landscape including immigration regulation changes, our ESG vision, our capital allocation policy and expectations concerning our market position, future operations, margins, profitability, liquidity, capital resources, our corporate actions including acquisitions, the outcome of pending litigation, the amount of any additional costs resulting directly or indirectly from the McCamish cybersecurity incident, the outcome of the government investigation, the timing, implementation, duration and effect of the September 19, 2025 proclamation signed by the president of the United States related to the H-1B visa program, and the effect of current and any future tariffs. Important factors that may cause actual results or outcomes to differ from those implied by the forward-looking statements are discussed in more detail in our US Securities and Exchange Commission filings including our Annual Report on Form 20-F for the fiscal year ended March 31, 2025. These filings are available at www.sec.gov. Infosys may, from time to time, make additional written and oral forward-looking statements, including statements contained in the Company's filings with the Securities and Exchange Commission and our reports to shareholders. The Company does not undertake to update any forward-looking statements that may be made from time to time by or on behalf of the Company unless it is required by law.
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Infosys Limited and subsidiaries Extracted from the Condensed Consolidated Balance Sheet under IFRS as at: (Dollars in millions) |
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|
September 30, 2025 |
March 31, 2025 |
|
|
ASSETS |
||
|
Current assets |
||
|
Cash and cash equivalents |
3,585 |
2,861 |
|
Current investments |
1,420 |
1,460 |
|
Trade receivables |
3,826 |
3,645 |
|
Unbilled revenue |
1,612 |
1,503 |
|
Other current assets |
1,470 |
1,890 |
|
Total current assets |
11,913 |
11,359 |
|
Non-current assets |
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Property, plant and equipment and Right-of-use assets |
2,172 |
2,235 |
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Goodwill and other Intangible assets |
1,652 |
1,505 |
|
Non-current investments |
1,225 |
1,294 |
|
Unbilled revenue |
260 |
261 |
|
Other non-current assets |
842 |
765 |
|
Total non-current assets |
6,151 |
6,060 |
|
Total assets |
18,064 |
17,419 |
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LIABILITIES AND EQUITY |
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|
Current liabilities |
||
|
Trade payables |
432 |
487 |
|
Unearned revenue |
1,016 |
994 |
|
Employee benefit obligations |
375 |
340 |
|
Other current liabilities and provisions |
3,401 |
3,191 |
|
Total current liabilities |
5,224 |
5,012 |
|
Non-current liabilities |
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|
Lease liabilities |
674 |
675 |
|
Other non-current liabilities |
479 |
477 |
|
Total non-current liabilities |
1,153 |
1,152 |
|
Total liabilities |
6,377 |
6,164 |
|
Total equity attributable to equity holders of the company |
11,634 |
11,205 |
|
Non-controlling interests |
53 |
50 |
|
Total equity |
11,687 |
11,255 |
|
Total liabilities and equity |
18,064 |
17,419 |
|
Extracted from the Condensed Consolidated statement of Comprehensive Income under IFRS for: |
||||
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(Dollars in millions except per equity share data) |
||||
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3 months ended September 30, 2025 |
3 months ended September 30, 2024 |
6 months ended September 30, 2025 |
6 months ended September 30, 2024 |
|
|
Revenues |
5,076 |
4,894 |
10,018 |
9,608 |
|
Cost of sales |
3,516 |
3,400 |
6,933 |
6,659 |
|
Gross profit |
1,560 |
1,494 |
3,085 |
2,949 |
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Operating expenses: |
||||
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Selling and marketing expenses |
254 |
221 |
512 |
454 |
|
Administrative expenses |
241 |
240 |
480 |
469 |
|
Total operating expenses |
495 |
461 |
992 |
923 |
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Operating profit |
1,065 |
1,033 |
2,093 |
2,026 |
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Other income, net (3) |
100 |
72 |
210 |
160 |
|
Profit before income taxes |
1,165 |
1,105 |
2,303 |
2,186 |
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Income tax expense |
325 |
327 |
654 |
644 |
|
Net profit (before minority interest) |
840 |
778 |
1,649 |
1,542 |
|
Net profit (after non-controlling interest) |
839 |
777 |
1,647 |
1,540 |
|
Basic EPS ($) |
0.20 |
0.19 |
0.40 |
0.37 |
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Diluted EPS ($) |
0.20 |
0.19 |
0.40 |
0.37 |
NOTES:
www.infosys.comIFRS-INR Press Release: https://www.infosys.com/investors/reports-filings/quarterly-results/2025-2026/q2/documents/ifrs-inr-press-release.pdf
Fact sheet: https://www.infosys.com/investors/reports-filings/quarterly-results/2025-2026/q2/documents/fact-sheet.pdf
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