Infosys Q2 profit rises 13%, Tech, AI-led deals drive growth

India's second-largest IT services firm, Infosys Ltd, reported a robust second quarter for FY26 (ended September 30), buoyed by strong large-deal momentum and continued focus on AI-led transformation partnerships. The Bengaluru-headquartered firm posted a 13.2% year-on-year rise in consolidated net profit to ₹7,364 crore for the July–September quarter, compared with ₹6,506 crore a year earlier. Revenue rose 8.55% YoY to ₹44,490 crore, with an operating margin at 21%.

A highlight of the quarter was Infosys’ $3.1 billion total contract value (TCV) in large deals, 67% of which were net new—a sign of expanding business even amid a cautious global spending environment. “We have now delivered two consecutive quarters of strong growth, demonstrating our unique market positioning and client relevance,” said Salil Parekh, CEO and MD, Infosys. “Strong deal wins reflect our deep understanding of clients’ priorities to deliver value from AI in this environment.”

Parekh noted that Infosys’ AI-first strategy, under its Topaz platform, continues to drive large-scale enterprise transformation. “Our proactive investments in building an AI-first culture have ensured that our people are reskilled to thrive in a human+AI workplace,” he added.

Tech, AI deals lead the quarter

Infosys’ Q2 saw several strategic alliances underscoring its focus on AI, cloud, and data modernisation. ABN AMRO partnered with Infosys to transform its lending process through the nCino platform, unifying multiple legacy systems into a single cloud-based framework.
With Mastercard, Infosys expanded access to Mastercard Move—a global money-movement suite—enhancing cross-border payment scalability for financial institutions. Sunrise extended its collaboration with Infosys to strengthen data security, operational agility, and AI integration.

In Australia, Infosys acquired a 75% stake in Telstra’s Versent Group, forming a joint venture to co-develop AI-enabled cloud and digital solutions for enterprises. The company also partnered with AGCO to revamp IT and HR operations for efficiency and scalability.
Analysts said the deal momentum reinforces Infosys’ strength in high-value verticals like AI, automation, and cloud transformation, even as clients defer discretionary spending.

Meanwhile, Wipro Ltd posted ₹22,697 crore in revenue, up 1.8% YoY, and a net profit of ₹3,262 crore, a modest 1.1% rise. While overall growth remained soft, Wipro scored two mega contracts worth over $500 million each—one with Phoenix Group and another with a U.S. telecom major—pushing total deal bookings to $4.69 billion for the quarter. The company guided for flat-to-mild revenue growth of –0.5% to +1.5% in Q3 FY26, reflecting ongoing demand uncertainty across global markets.

AI at the Core of Future Growth

Infosys’ strategic positioning around AI and cloud continues to offer resilience amid macroeconomic headwinds. With more than $3 billion in large-deal signings, a diversified client base, and disciplined cost management, the company remains well-placed to sustain steady growth.
Infosys ended Q2 with 1,896 active clients and a workforce of 3.32 lakh, 39.5% of whom are women. Analysts expect AI-led offerings such as Topaz and continued global partnerships to underpin growth in the second half of FY26.