Infosys shares jump 3% ahead of Q2 earnings announcement. What to expect?
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Infosys shares rose on Friday ahead of the IT major’s Q2 FY27 results, with analysts expecting an 11% year-on-year rise in revenue and an 8% increase in net profit. Investors will track management commentary on client spending, large deal wins and AI-led pricing pressure, alongside the company’s full-year revenue growth guidance.
Infosys shares jumped 3% on Friday ahead of the IT major’s Q2 FY27 results. Investors will be closely tracking the earnings print after the so-called ‘anti-AI’ advantage drove the stock up 16% in a month.Infosys is estimated to report an 11% year-on-year (YoY) rise in revenue and an 8% increase in net profit for the second quarter of FY27, according to the average of estimates from seven brokerages. However, analysts forecast India's second-largest IT services company to lower its full-year revenue growth guidance amid weak discretionary spending, AI-led pricing pressure and slower client decision-making.
The Bengaluru-based IT major is expected to report revenue of around Rs 49,384 crore for the second quarter, as compared with Rs 44,490 crore in the corresponding period last year, based on the brokerage consensus.
Consolidated net profit is expected to increase to Rs 7,965 crore from Rs 7,375 crore a year earlier.
Also read | Infosys Q2 results preview: Will the results provide oomph to surging IT stocks?
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Investors will closely watch out for Infosys management’s commentary on client spending, large deal wins and the impact of artificial intelligence on its traditional IT services business.
The results will effectively wrap up the Q2 earnings season for major IT companies, following announcements by TCS, HCL Technologies, Wipro and Tech Mahindra.
How did Infosys perform in the previous quarter?
Infosys in July reported 12% year-on-year (YoY) growth in its consolidated net profit at Rs 7,769 crore in the first quarter of FY27. The same stood at Rs 6,921 crore in the last year quarter. Revenue from operations in the reporting period increased 14% YoY to Rs 48,211 crore.For the full financial year 2027, the company trimmed the upper end of the revenue growth guidance 1.5%-3% in constant currency, while operating margin outlook was given at 20-22%.
Operating profit stood at Rs 10,163 crore, up 15% from Rs 8,803 crore a year earlier. Operating margin came in at 21.1%, compared with 20.8% in the year-ago quarter and 21% in the March quarter.
Infosys said AI revenue stood at 8.2% of total revenue in Q1. Large deal total contract value was $3.6 billion, with 61% net new business. Free cash flow stood at $955 million, or Rs 9,051 crore, with free cash flow conversion at 116.4% of net profit.
Also read | Infosys Q1 Results: Profit rises 12% YoY to Rs 7,769 crore; co trims upper-end revenue forecast
Infosys share price
Infosys shares have fallen 27% in 2026 so far but gained 16% in the past one month as growing concerns around the massive spending behind artificial intelligence sparked a sharp selloff in the global AI stocks, boosting sentiment for India’s battered IT stocks which analysts say bear the so-called ‘anti-AI’ advantage.In the longer term, the stock has fallen more than 16% in three years and 31% in five years. The company has a market capitalisation of around Rs 4.18 lakh crore.
Disclaimer: This article has been written by Debaroti Adhikary, who is not a SEBI-registered Research Analyst or an Investment Adviser. Debaroti Adhikary and his/her ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimers here.
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Figures reflect the source report and its stated period. This article is for information and is not investment advice.
