Infosys Q2 FY27 Results Show 29% AI Revenue Growth Despite Lowered FY27 Guidance

Infosys AI Revenue Reaches 10.5% of Total Revenue with 29% Sequential Growth

Infosys delivered robust AI performance in Q2 FY27, with AI revenue growing 29% sequentially and accounting for 10.5% of total revenue, up from 8.2% in the previous quarter1

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. CEO and Managing Director Salil Parekh positioned the company as the preferred AI strategy and deployment partner for top clients as enterprises accelerate AI adoption at scale2

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. The quarter's financial results showed consolidated revenue of Rs. 49,244 crore ($5,145 million), representing year-on-year growth of 10.7% in rupee terms and 1.5% in constant currency4

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. Net profit rose 6.2% to Rs. 7,823 crore, while the operating margin remained stable at 21.0%3

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Large Deal Contract Value Hits $5.2 Billion with Two Mega Deals

Infosys secured $5.2 billion in large deal contract value during Q2, with 62% classified as net new business1

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. The quarter included two mega deals: a net-new engagement worth more than $2 billion with a large international company spanning seven years, expected to contribute over 1% revenue growth in the next financial year, and a $1 billion renewal2

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. Parekh emphasized that these large deals reinforce Infosys' position as a trusted partner when clients embark on large and complex transformation programs3

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. The company's large-deal pipeline remains healthy and includes additional mega deals under consideration2

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AI-Led Transformation Projects Drive Enterprise AI Transformation

Infosys is executing AI-enabled client engagements across multiple industries, demonstrating how AI moves into core business operations. The company collaborated with Mondelēz International on supply chain transformation through AI-enabled decision-making, data standardization, and intelligent enterprise workflows3

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. Sanjay Gurbaxani, Global Vice President of Digital Supply Chain at Mondelēz International, highlighted the potential of bringing together people, processes, data, and technology as AI evolves toward agentic AI3

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. Additional engagements included Telia's AI-powered network and cybersecurity transformation using Infosys Topaz, KnitWell Group's AI-powered customer engagement platform called Engage, and Knorr-Bremse's AI-enabled enterprise transformation2

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Infosys AI Strategy Leverages Ecosystem Integration Across Models

Infosys positions itself as an ecosystem integrator working with frontier-model companies across both open-weight and closed-model environments2

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. Parekh explained that the company's investments in Infosys Topaz Fabric enable enterprises to navigate between different AI models, optimize token usage, and focus on value realization2

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. This approach allows Infosys to advise enterprises on AI strategy and help them select and integrate models based on specific business requirements. The company has also incorporated AI software engineering tools into its development work, including a partnership with Cognition to deploy the Devin AI software engineer across internal engineering operations and client engagements1

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. Infosys continues to invest in deep domain and technology capabilities and an integrated ecosystem to help businesses unlock AI value at scale3

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Infosys Financial Results Show Stable Performance Amid Market Volatility

For Q2 FY27, Infosys reported consolidated revenue of Rs. 49,244 crore, compared with Rs. 44,490 crore in the corresponding quarter last year4

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. Operating profit increased 10.4% year-on-year to Rs. 10,330 crore, maintaining an operating margin of 21.0%4

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. Chief Financial Officer Jayesh Sanghrajka attributed the stable margin to cost and operational efficiency measures while making required investments amid heightened volatility3

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. Free cash flow reached $928 million for the quarter, representing 113.3% of net profit, underscoring the financial strength of the business3

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. Basic earnings per share increased 8.7% year-on-year to Rs. 19.32, while the Board announced an interim dividend of Rs. 26 per share, a 13% increase from last year3

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FY27 Growth Guidance Revised Downward Despite Strong AI Performance

Infosys lowered its FY27 constant currency revenue growth forecast to 1%-2%, down from the previous guidance of 1.5%-3%, while retaining its operating margin guidance at 20%-22%1

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. The revised outlook reflects cautious client spending, slower decision-making, and pressure on traditional IT services pricing1

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. For IT services firms, AI can drive demand for consulting, implementation, and engineering work while reducing the hours needed to deliver existing contracts, raising questions about whether vendors can win enough net new business to offset those efficiencies1

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. The company's first-half FY27 revenue increased 12.3% year-on-year to Rs. 97,454 crore, with constant currency growth at 1.9% and operating margin at 21.0%4

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