Infosys Ltd, one of India’s leading IT services companies, reported a steady performance for the July–September quarter (Q2 FY26) on October 16, 2025, showcasing resilience in a challenging global technology environment. The company’s consolidated net profit rose 13.2% year-on-year to ₹7,364 crore, supported by stable margins, strong cash generation, and healthy deal activity.
Revenue and Margins Remain Steady
Consolidated revenue for the quarter stood at ₹44,490 crore, reflecting an 8.6% year-on-year increase and 2.2% sequential growth in constant currency terms. The performance surpassed market expectations, which had estimated revenue at ₹44,142 crore.
Operating margin for the quarter remained stable at 21%, compared to 20.8% in the previous quarter, though slightly below the anticipated 21.3%. The EBIT margin guidance for FY26 continues to be in the 20–22% range, signalling consistent operational efficiency despite market uncertainties.
Narrowed FY26 Guidance Reflects Confidence
Infosys has tightened its FY26 revenue growth guidance to 2–3% in constant currency terms, raising the lower end from its earlier 1–3% range. This revision underscores the management’s confidence in deal execution and delivery capabilities. The company retained its margin outlook, highlighting its ability to balance profitability and growth in a dynamic macro environment.
Strong Deal Wins and AI-Driven Strategy
The quarter recorded large deal wins worth $3.1 billion, representing a 29% year-on-year increase, with 67% of the total being net new contracts. Although sequentially lower due to the timing of closures, the deal momentum remains healthy.
CEO and MD Salil Parekh attributed this performance to Infosys’ evolving client partnerships and its AI-first approach through the Topaz platform, which continues to deliver scalable value in digital transformation initiatives.
Robust Cash Generation and Dividend Payout
Chief Financial Officer Jayesh Sanghrajka described the quarter as a robust all-round performance, highlighting free cash flow of ₹9,677 crore, up 38% year-on-year and representing 131% of net profit.
Infosys also announced an interim dividend of ₹23 per share, marking a 9.5% increase from the previous year. The record date is set for 27 October 2025. Additionally, the company’s board approved a ₹18,000 crore share buyback via the tender offer route at ₹1,800 per share — the largest in Infosys’ history.
Talent Growth and Attrition Decline
During the quarter, Infosys added 8,203 employees, bringing renewed strength to its workforce. The company’s attrition rate dropped to 14.3% on a last-twelve-month basis, indicating improving employee stability. Infosys has already onboarded 12,000 freshers in H1 FY26 and remains on course to hire 20,000 freshers for the full year, underscoring its commitment to nurturing talent for future demand.
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Outlook
With a combination of steady growth, resilient margins, and strong deal traction, Infosys has delivered a balanced quarter amid a cautious global spending environment. The company’s sharpened focus on AI-led innovation, operational discipline, and strategic deal pipeline positions it well to navigate FY26 with confidence.
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