Bengaluru, October 16, 2025 — India’s second-largest IT services company, Infosys, announced its Q2 FY26 results, reporting a 13% year-on-year jump in net profit to ₹7,364 crore, beating market expectations and signaling a recovery in global IT demand. The strong performance has sent Infosys share price higher in early trading, as analysts reaffirmed their bullish stance on the IT major.
Infosys Q2 Results: Strong Profit and Margins
According to the company’s filing, Infosys’ revenue for the quarter stood at ₹39,870 crore, marking a 6.2% year-on-year increase. The company also declared an interim dividend of ₹23 per share, with the record date set for October 27, 2025.
Despite macroeconomic headwinds, Infosys’ operating margin remained stable at 20.4%, demonstrating strong cost optimization and efficient delivery management across its key verticals — banking, financial services, retail, and manufacturing.
“Our Q2 performance reflects consistent execution and client confidence across industries,” said Salil Parekh, CEO and Managing Director of Infosys. “We continue to invest in AI, cloud, and digital transformation solutions to help clients adapt faster in an evolving global environment.”
Revenue Guidance Revised; Demand Outlook Improves
Infosys narrowed its FY26 revenue guidance to 2–3% growth, compared to 1–3% previously, while maintaining its EBIT margin forecast at 20–22%. The company’s leadership attributed this to strong deal momentum and stabilization in discretionary IT spending among global clients.
In contrast to its Q1 performance, Infosys secured five large deals this quarter, valued at over $2.5 billion collectively. These include multi-year digital transformation partnerships in banking, healthcare, and energy sectors.
Analysts believe the Infosys results indicate the IT industry is witnessing early signs of recovery after a sluggish 2024 marked by cautious enterprise spending and delayed technology budgets.
Infosys Share Price Reaction and Market Sentiment
Following the announcement, Infosys share price gained nearly 2% in early NSE trading, outperforming the broader IT index. On the BSE, the stock opened at ₹1,640 and touched an intraday high of ₹1,672 before stabilizing around ₹1,660.
Brokerages including Motilal Oswal, Jefferies, and Kotak Institutional Equities have maintained their “Buy” rating on the stock, citing a robust deal pipeline, resilient margins, and improving utilization rates.
“Infosys’ execution and cost discipline are impressive. The revised guidance reflects confidence in demand recovery,” said a Jefferies analyst in a note to clients.
Meanwhile, Infosys ADR on the New York Stock Exchange fell 2.25% to $16.07, as global investors awaited further clarity on the U.S. economic outlook and currency fluctuations.
Sector Impact: IT Stocks in Focus
The Infosys Q2 results have also lifted sentiment across the Indian IT sector. Peers like Wipro and Tech Mahindra witnessed moderate gains, while TCS remained flat after its own quarterly report last week.
Market experts say Infosys’ performance will set the tone for other mid- and large-cap IT companies reporting this week. The company’s strong execution could also positively influence infy share price in the coming quarters, especially if global technology spending continues to stabilize.
On the flip side, some analysts have cautioned that wage inflation, pricing pressure, and slower decision-making in key markets like the U.S. and Europe could weigh on growth in the second half of FY26.
Infosys Bets Big on AI and Cloud
Infosys has been ramping up its investments in artificial intelligence (AI), automation, and cloud services through its Topaz AI suite. The company reported that AI-driven deals accounted for nearly 40% of its new wins this quarter.
Parekh emphasized that Infosys will continue leveraging AI-powered productivity tools internally to drive margin improvement. The company is also exploring partnerships with hyperscalers such as Microsoft Azure, AWS, and Google Cloud to expand its digital transformation offerings.
What Analysts Are Saying
Brokerages are optimistic about the near-term outlook:
- Motilal Oswal: Maintained a target price of ₹1,950, highlighting consistent growth in large deals and stable margins.
- Nomura India: Noted Infosys’ “disciplined execution and strong client retention” as key differentiators.
- ICICI Securities: Upgraded Infosys share to “Buy”, citing its attractive valuation post-correction.
Conclusion: Infosys Strengthens Leadership Amid IT Recovery
The Infosys Q2 results showcase resilience and adaptability in an uncertain global environment. By focusing on AI-led transformation, cost efficiency, and client-centric growth, the company continues to reaffirm its position as a global IT leader.
With a strong deal pipeline and a renewed demand outlook, Infosys share price could remain in focus for investors seeking exposure to India’s IT sector rebound.
As India’s tech giants like Infosys, Wipro ADR, and TCS continue to navigate changing global demand, the sector appears well-positioned for steady long-term growth.
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