Infosys Ltd, India’s second-largest IT services company, announced its financial results for the second quarter of FY26, reporting healthy deal momentum and improved profitability. The Bengaluru-based firm also declared an interim dividend of ₹23 per share and unveiled a massive ₹18,000 crore share buyback, reaffirming its strong cash position and shareholder commitment.
Revenue and Growth Highlights
Infosys reported revenue of ₹44,490 crore for Q2FY26, exceeding street expectations and marking a 2.2% sequential growth in constant currency (CC) terms. The company secured $3.1 billion worth of total contract value (TCV) during the quarter, with 67% of these being new deals, reflecting strong demand for digital transformation and AI-driven services.
The company’s management said that the growth was broad-based across sectors, led by financial services, manufacturing, and energy verticals, even as global macroeconomic uncertainties persisted.
EBIT and Margins Performance
Infosys’ Earnings Before Interest and Tax (EBIT) stood at ₹9,353 crore, registering a 6.25% sequential increase, though marginally below market expectations of ₹9,385 crore. The EBIT margin came in at 21%, slightly lower than the consensus estimate of 21.3%, but an improvement over 20.8% in Q1FY26.
For the full financial year, Infosys revised its constant currency revenue growth guidance to 2–3%, narrowing its range from the earlier projection of 1–3%. EBIT margin guidance for FY26 remains unchanged at 20–22%, indicating stable operational outlook.
Dividend and Shareholder Returns
Continuing its consistent track record of rewarding investors, Infosys declared an interim dividend of ₹23 per share, with the record date fixed for October 27, 2025.
Additionally, the company announced its largest-ever share buyback, worth ₹18,000 crore, to be conducted through the tender offer route at ₹1,800 per share, representing a 19% premium over the prevailing market price. The buyback will cover approximately 2.41% of outstanding shares.
Outlook and Strategy
Infosys continues to focus on expanding its AI and cloud-led digital transformation offerings, supported by strategic cost management and efficiency initiatives. The company’s strong deal pipeline and stable margin trajectory signal resilience amid a challenging global IT spending environment.
Summary
- Revenue (Q2FY26): ₹44,490 crore (↑2.2% QoQ in CC)
- EBIT: ₹9,353 crore (↑6.25% QoQ)
- EBIT Margin: 21% (vs 20.8% in Q1FY26)
- Deal Wins: $3.1 billion (67% new deals)
- Dividend: ₹23/share (Record date: Oct 27, 2025)
- Buyback: ₹18,000 crore at ₹1,800/share (2.41% of shares)
Infosys’ Q2FY26 results highlight steady execution, strong deal wins, and continued shareholder returns — positioning the company for moderate but stable growth in the remainder of the fiscal year.
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