Large Deal TCV
$3.1B
+63% net new
Large deal total contract value for Q2, with 67% net new; H1 TCV at $6.9B.
INFY
Other
16 Oct 2025
Infy Ltd — Q2 FY26
Infosys delivered a strong Q2 FY26 with constant currency revenue growth of 2.9% YoY and sequential operating margin expansion of 20 bps to 21%.
✓ Verified against BSE filing
2-Min Summary
Infosys delivered a strong Q2 FY26 with constant currency revenue growth of 2.9% YoY and sequential operating margin expansion of 20 bps to 21%. Large deal TCV was robust at $3.1 billion with 67% net new, and a subsequent $1.6 billion mega deal was announced. Growth was driven by financial services and manufacturing, while AI-related projects (2,500+ generative AI, 200+ agentic) are scaling. Management raised FY26 revenue guidance to 2-3% CC, maintaining margin guidance of 20-22%. Key risk: persistent macro uncertainty and tariff-related headwinds could elongate decision cycles and pressure discretionary spending.
Key Numbers
Employee Headcount
332,000
+8,000 QoQ
Net addition of 8,000 employees in Q2; 12,000 freshers hired in H1.
Attrition Rate
14.3%
flat
Attrition remains low at 14.3%, indicating stable workforce retention.
Free Cash Flow
$1.1B
131% of net profit
Strong cash generation; FCF conversion above 100% for sixth consecutive quarter.
Management Guidance
FY26 revenue growth guidance raised to 2-3% CC
Revised from previous range; reflects strong H1 performance and includes seasonal H2 softness.
revenueOperating margin guidance maintained at 20-22%
Margin guidance unchanged despite revenue guidance revision; Project Maximus and cost levers support.
marginsMega deal with NHS worth $1.6B to ramp up this fiscal year
100% net new deal announced post-Q2; expected to contribute to H2 revenue.
growthVersant JV expected to close this fiscal year
Pending regulatory approvals; last year revenue AUD 210M; not included in guidance.
expansionKey Risks
Macro uncertainty and tariff risks
Geopolitical tensions and tariff uncertainties are causing elongated decision cycles and pressure on discretionary spending, especially in retail and manufacturing.
high · management_commentaryH1B visa fee hike impact on delivery model
Analyst raised concern about visa cost increases; management acknowledged potential model shift but provided no specific quantification of margin impact.
medium · analyst_questionAI deflationary pressure on revenue growth
Analyst questioned whether AI-driven productivity gains could compress revenue; management noted cost reduction focus but did not quantify net impact.
medium · analyst_questionSeasonal H2 softness
Lower working days, furloughs, and calendar effects expected to impact H2 growth; guidance reflects this but could be worse if macro deteriorates.
low · management_commentaryNotable Quotes
We had a strong performance in Q2 with increased market share gains.
Our client interactions show strong focus on deploying AI across the enterprise for growth and on cost-efficiency programs.
We are delivering more than 2,500 generative AI and AI projects and 200+ agentic AI projects for our clients.