Infosys Q2FY27 Results: Mixed Earnings Expected with AI Focus

Infosys is estimated to post revenue of ₹48,318 crore for the June quarter, up 4.13% from ₹46,402 crore reported in the March quarter. According to ET Now estimates, this represents a slight revision from earlier projections. In dollar terms, revenue is estimated at $5,065 million, a sequential increase of 0.5% from $5,040 million. Brokerages estimate revenue in the range of ₹48,086 crore to ₹48,659 crore for Q1FY27. Sequential constant currency (CC) revenue growth is expected at 2-2.2%, with analysts expecting constant currency revenue growth of 1%–2.5% quarter-on-quarter, including around 1% contribution from recent acquisitions. The growth is expected to be supported by contributions from the Optimum Healthcare IT and Stratus acquisitions, along with continued deal ramp-ups. Nuvama expects Infosys to report 2.3% quarter-on-quarter revenue growth in constant currency terms and 2.1% growth in dollar terms, including about 1% inorganic contribution from the early closure of Optimum. However, organic growth is expected to remain modest, showing that the demand recovery is still gradual.

Earnings before interest and tax (EBIT) are estimated at ₹9,677 crore, down 0.68% from ₹9,743 crore in the previous quarter. According to ET Now estimates, EBIT margin is expected to decline to 20.03% in Q1 FY27 from 21% in the previous quarter. However, profit after tax (PAT) is likely to decline 7.84% sequentially to ₹7,834 crore, compared with ₹8,501 crore reported in the March quarter. Net profit is expected to come in between ₹8,049 crore and ₹8,173 crore. While profit could decline 3.9-5.3% sequentially due to normal quarterly seasonality, it is still expected to rise 16-18.1% compared with the year-ago quarter. Most analysts expect operating margins to remain healthy or improve slightly, with operating margin estimated in the range of 21.2-21.4%, with some estimates going as high as 23.3%. Nuvama expects EBIT margin to expand 30 basis points sequentially, helped by currency tailwind and lower provision for doubtful debt. EBIT margin is expected to improve marginally by 30 to 40 bps in the range of 21.1% to 21.3%, aided by rupee depreciation, cost optimisation and absence of wage hikes. According to Chief Financial Officer Jayesh Sanghrajka, two key tailwinds are likely going to offset the margin pressure: rupee depreciation and 'Project Maximus'. Every 1% change in the currency or depreciation... typically gives you anywhere between 15 to 17 basis points on margins, as outlined during the post-earnings conference call.

Addressing shareholders at the company's 45th AGM in June 2026, Nandan Nilekani, Infosys' co-founder and Chairman, said that the company is keen to tap into a massive $400 billion artificial intelligence (AI) first service opportunity by 2030. According to Upstox, Nilekani asserted that AI will not replace IT firms but rather "amplify" them. The co-founder noted that the AI deployment gap in large enterprise clients is real, and closing that gap is where the work is. "More than three years after GenAI was launched, Infosys is more relevant than ever before and well-positioned for the decade ahead," Nilekani stated. He explained that enterprise solutions demand rigorous testing, resilient architecture, foundational cybersecurity, and strict data governance that cannot be outsourced to external platforms. The AI revolution has made legacy modernisation urgent, positioning Infosys to capitalise on this structural shift in technology. As part of its AI-first approach, Infosys is leveraging Infosys Topaz Fabric, a purpose-built agentic services suite, which unifies infrastructure, models, data, applications, and workflows into a composable, agent-ready ecosystem.

Infosys in June 2026 announced its strategic collaboration with Sentara, a leading not-for-profit healthcare organisation. The partnership seeks to build a scalable AI-driven foundation to boost efficiency, empower clinicians and staff, and enhance patient and member experiences. As part of the collaboration, Infosys will leverage Infosys Topaz Fabric to allow Sentara to reference architectures, AI-first SDLC modernization, and govern scaling to embed AI across core hospital and enterprise workflows. Additionally, Infosys in early June partnered with Germany-based Handelsblatt Media Group to launch an AI-powered editorial engine to automate editorial workflows. The partnership has launched Editorial Link Intelligence (ELI), which leverages Infosys Aster, an AI-amplified marketing suite. The editorial recommendation engine was developed exclusively for Handelsblatt and WirtschaftsWoche, designed to elevate digital journalism by delivering enhanced storytelling and driving deeper reader engagement.

This is likely to be the biggest talking point for investors. As reported by Moneycontrol, brokerages remain divided on guidance revisions. Motilal Oswal expects Infosys to trim the upper end of its FY27 constant currency revenue growth guidance to 1.5-3%. BNP Paribas expects the company to revise guidance to 2-4% after incorporating the Optimum Healthcare IT acquisition while maintaining its operating margin guidance of 20-22%. Elara Securities believes there is a higher probability of the company lowering the upper end of its guidance given the relatively weaker Q1 growth. However, Nuvama expects Infosys to raise its FY27 revenue growth guidance to 2.5-4% in constant currency terms from 1.5-3.5% earlier, driven by an incremental 1% contribution from acquisitions. For FY27, Infosys has guided for constant currency revenue growth of 1.5% to 3.5%, with investors expected to closely watch whether the company maintains this outlook. Jefferies expects first-quarter revenue to grow 2.5% quarter-on-quarter in constant currency, including around 100 basis points of inorganic contribution. It expects Infosys to raise its fiscal 2027 revenue growth guidance by 100 basis points to 2.5%–4.5% while maintaining its EBIT margin guidance of 20%–22%. However, Goldman Sachs believes Infosys may effectively lower its organic growth outlook, expecting the company to keep the upper end of its overall guidance unchanged, implying a 50–100 basis point reduction in the underlying organic growth outlook.

Infosys shares opened at ₹1,046.90 apiece today, as compared to previous close of ₹1,052.10 on Wednesday. The stock touched an intraday high of ₹1,040 and low of ₹1,039.10 on July 23, 2026. The IT stock fell as much as 1% on NSE in Thursday's trading session ahead of its Q1 results announcement. Infosys shares ended the previous session 2% lower at ₹1,052 apiece and have declined 35% this year, so far. The stock is 8% off its 52-week-low of ₹982.4 apiece, which it hit on July 1. Infosys' market capitalisation stood at ₹4,26,938.44 crore. The stock had touched its 52-week high of ₹1,728 on February 3, 2026, at the current price it is trading at ₹676.80, or around 39.2% below that level. Based on the current share price and market capitalisation, Infosys was valued at around ₹7 lakh crore at its 52-week high, indicating the company has lost nearly ₹2.75 lakh crore in market value from its peak. According to CNBC-TV18, analysts expect Infosys to lead in growth among the large caps IT stocks in the first quarter, but only second to Tech Mahindra whose constant currency growth for the quarter stood at 2.6%. While TCS saw a 0.4% constant currency growth sequentially during the quarter, HCLTech and Wipro saw a drop of 0.5% and 1.2% respectively compared to the previous quarter. Ahead of the 28 July expiry, the options market is pricing in a move of roughly ±4.7% in Infosys, with strong call build-up at 1,100 strike suggesting resistance around this zone.