Infosys Limited · INFY · FY2027 Q2 · Calendar Q4 2026
Infosys pairs faster AI growth with lower revenue guidance
The quarter supports a mixed view: AI adoption, deal momentum and cash generation strengthen the growth case, but the lower revenue outlook and persistent pricing and margin pressures limit confidence that demand will translate into near-term earnings acceleration.
Earnings scorecard
Reported versus consensusMarket reaction
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Transcript intelligence
What changed
AI revenue increased to 10.5% of revenue from 8.2% in the prior-quarter analysis, while large deals rose to $5.2 billion from $3.6 billion. At the same time, full-year revenue-growth guidance was lowered from 1.5%-3% to 1%-2%.
Guidance delta
Full-year revenue-growth guidance was trimmed to 1%-2% YoY as macro and pricing pressures persist.
Key takeaways
- AI revenue reached 10.5% of total revenue and grew 29% quarter on quarter.
- Large deals totaled $5.2 billion, including a new seven-year $2 billion mega-deal.
- Operating margin held near 21%, while Project Maximus is intended to offset compensation, acquisition and seasonality headwinds.
- Free cash flow was $928 million, and management said the company remains debt-free.
Management priorities
- Scale AI capabilities through Topaz Fabric, Agentic Foundry and partnerships.
- Convert large-deal and mega-deal wins into revenue.
- Use Project Maximus to offset margin pressure while continuing planned hiring.
- Maintain the offshore delivery model and expand AI-driven modernization.
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Try FN2 freeCompany context
Snapshot as of publicationInfosys Limited, through its global network of subsidiaries, delivers an extensive portfolio of consulting, technology, outsourcing, and next-generation digital services spanning North America, Europe, India, and other international markets. The company's diverse offerings encompass a broad spectrum of digital capabilities, including marketing, workplace modernization, e-commerce, customer experience enhancement, and exploration into the metaverse. It provides expertise in data analytics, both applied and generative artificial intelligence, sustainability initiatives, blockchain, engineering, and the Internet of Things. Further services cover enterprise agile DevOps, application modernization, cloud computing, digital process automation, and optimization of digital supply chains. Infosys also specializes in Microsoft business applications, cloud business integration, service experience transformation, energy transition, robust cybersecurity, and quality engineering.…
Historical context
All INFY earningsTechnology peers this season
Latest reports in the same sector| Company | Quarter | EPS surprise | Market move | Headline |
|---|---|---|---|---|
| SSNC SS&C Technologies Holdings, Inc. | FY2026 Q3 · Calendar Q4 2026 | +0.6% | +2.8% | SS&C raises 2026 outlook as AI and tokenization support growth |
| ROP Roper Technologies, Inc. | FY2026 Q3 · Calendar Q4 2026 | +1.7% | +9.7% | Roper raises DEPS outlook as AI adoption expands across portfolio |
| VRSN VeriSign, Inc. | FY2026 Q3 · Calendar Q4 2026 | -2.0% | -0.9% | VeriSign reports record registrations as renewal mix becomes a key watchpoint |
| TTMI TTM Technologies, Inc. | FY2026 Q3 · Calendar Q4 2026 | +16.8% | -27.7% | TTM Technologies Q3: Record Growth, Higher Investment, More Deal Risk |
| NOK Nokia Oyj | FY2026 Q3 · Calendar Q4 2026 | +25.0% | -14.8% | Nokia Q3: AI and cloud growth lifts margins as cash flow stays negative |
| WDC Western Digital Corporation | FY2027 Q1 · Calendar Q4 2026 | +12.9% | -6.4% | Western Digital pairs strong FY27 Q1 growth with an accelerated HDD roadmap |
Latest beats and misses
Who reports nextBeat on EPS
- DECKFY2027 Q2 · October 22, 2026+13.4% EPS-0.2% move
- OMCFY2026 Q3 · October 22, 2026+2.2% EPS+2.6% move
- SSNCFY2026 Q3 · October 22, 2026+0.6% EPS+2.8% move
- BEFY2026 Q3 · October 22, 2026+36.0% EPS-8.7% move
- ROPFY2026 Q3 · October 22, 2026+1.7% EPS+9.7% move
- BPOPFY2026 Q3 · October 22, 2026+5.8% EPS-2.8% move
Missed on EPS
- SNAFY2026 Q3 · October 22, 2026-5.9% EPS-3.4% move
- SPOTFY2026 Q3 · October 22, 2026-11.6% EPS+11.1% move
- VRSNFY2026 Q3 · October 22, 2026-2.0% EPS-0.9% move
- HBANMFY2026 Q3 · October 22, 2026-5.3% EPS+0.5% move
- HBANPFY2026 Q3 · October 22, 2026-5.3% EPS0.0% move
- PCGFY2026 Q3 · October 22, 2026-0.8% EPS-1.3% move
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Sources
- Earnings call transcript and parsed analysis · 2026-10-23T16:04:45.676971+00:00
- FN2 earnings calendar · 2026-10-23T01:23:12.835668+00:00
- Polygon adjusted daily market bars · 2026-10-23T16:20:46.073711+00:00
- Financial Modeling Prep analyst price-target consensus and quote snapshot · 2026-10-23T16:20:46.071061+00:00
Methodology
Reported and consensus figures come from FN2's earnings event records. Market reaction and volume are calculated from daily adjusted bars around the event; abnormal move subtracts the SPY move over the same window.
Transcript intelligence is a structured synthesis of the current and prior earnings-call analyses. Missing values stay missing and are never estimated.
By FN2 Research · Updated · As of 2026-10-23. For educational purposes only; not investment advice.