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Infosys narrows annual revenue guidance after 5.2% decline in Q2, profit up 6.4%
Infosys Q2 Results FY26: Revenue fell 5.2% QoQ to ₹44,490 crore even as net profit rose 6.4% QoQ to ₹7,364 crore.
Infosys Ltd. has decided to narrow its annual revenue growth guidance after a more than 5% decline in the second quarter of the ongoing fiscal.
Consolidated revenue of India's second largest IT services company fell 5.2% from the previous three months to ₹44,490 crore in the quarter ended 30 September, according to an exchange filing on Thursday (16 October 2025). That compares with the Rs-44,008-crore estimate of analysts tracked by Bloomberg.
Infosys Q2 Results FY26: Key Highlights (QoQ)
- Revenue down 5.2% at ₹44,490 crore (Estimate: ₹44,008 crore)
- EBIT up 6.2% at ₹9,353 crore (Estimate: ₹9,338 crore)
- EBIT margin up 20 basis points at 21.02% (Estimate: 21.21%)
- Net profit up 6.4% at ₹7,364 crore (Estimate: 7,222 crore)
- Interim dividend of ₹23/share declared
One basis point is one-hundredth of a percentage point.
Infosys Revenue Guidance
Infosys has raised the lower end of its revenue growth guidance, banking on a revival in client spending on AI. The Bengaluru-based IT services firm now sees revenue growth at 2% to 3% in constant-currency terms in the fiscal ending 31 March 2026, as against 1% to 3% estimated in July.
“The second half of the year is generally slower (than the first half),” Chief Executive Officer Salil Parekh said, but “the company is confident of future momentum, which has led to the guidance uptick”.
Still, there's some likelihood of some moderation in 2025, as IT budges remain under intense scrutiny amid an increasingly uncertain economy, according to Bloomberg Intelligence.
“Our thesis stems from indications that the IT-services area is likely more exposed to muted discretionary spending, especially more digitally native providers like Infosys,” BI analysts Anurag Rana and Andrew Girard said. “Potential changes in the US H-1B visa policy also represent meaningful overhang, which could depress near-term bookings and impose costs.”
On Thursday, Infosys share price fell 0.08% to ₹1,472.75 apiece on the BSE even as the benchmark Sensex ended the day 1.04% higher at 83,467.66 points. The quarterly results were declared after market hours.
