Infosys Limited (NYSE:INFY), the global leader in digital services and consulting, reported second-quarter earnings in line with analyst estimates, while revenue outperformed projections, leading to a modest 0.2% increase in its share price after the announcement.
The company posted earnings per share of $0.19 for the quarter, matching the consensus forecast. Revenue reached $4.94 billion, beating the analyst consensus of $4.88 billion. On a year-over-year basis, revenue increased 3.8%, while on a sequential basis and in constant currency terms, growth was 2.6%.
Operating margin was 20.8%, reflecting a slight decrease of 0.3% compared to the same quarter last year and a marginal 0.2% drop quarter-over-quarter. Free cash flow remained robust at $884 million, equal to 109.3% of net profit, although it was down 19.2% from the prior year.
“Our performance in Q1 demonstrates the strength of our enterprise AI capabilities, the success in client consolidation decisions, and the dedication of our over 300,000 employees,” said Salil Parekh, CEO and Managing Director of Infosys. “Our large deal wins of $3.8 billion reflect our distinct competitive positioning and deep client relationships.”
Looking ahead to fiscal 2026, Infosys forecasted revenue growth of 1% to 3% in constant currency terms and an operating margin range of 20% to 22%.
Jayesh Sanghrajka, CFO, emphasized the company’s financial discipline: “Q1 performance is a clear reflection of our unwavering focus on multiple fronts resulting in strong growth at 2.6% QoQ, resilient margins at 20.8% and EPS increase of 8.6% YoY. Cash flow conversion was well above 100% for the fifth consecutive quarter.”
During the quarter, Infosys expanded its strategic alliances, extending partnerships with clients such as Select Portfolio Servicing, AIB, E.ON, DNB Bank ASA, and Yorkshire Building Society.
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