Infosys Q2 profit rises 6.2%, but FY27 guidance cut

Infosys Limited (NSE: INFY) reported Q2 FY27 consolidated net profit of ₹7,823 crore, up 6.2% YoY. Revenue increased to ₹49,244 crore, but the company lowered its FY27 constant-currency revenue growth guidance to 1–2% from 1.5–3%. Key Highlights • Revenue grew approximately 10.7% YoY in rupee terms, while constant-currency growth stood at 1.5%. • Large deal wins reached $5.2 billion, with 62% coming from net-new business. • AI-related revenue grew 29% sequentially and contributed 10.5% of quarterly revenue. • Operating margin remained stable at 21%. • North American revenue declined 1.5% amid weaker client spending. • The company announced an interim dividend of ₹26 per share. My View Infosys delivered reasonable profit growth and strong deal bookings, but the reduced revenue guidance raises concerns about near-term demand. The most important development is the contrast between $5.2 billion in deal wins and just 1.5% constant-currency revenue growth. This suggests that strong deal bookings are not immediately translating into faster revenue growth. AI presents another interesting opportunity. While AI-related revenue is expanding rapidly, clients are also demanding productivity improvements and lower costs, creating pricing pressure on traditional IT services. I believe the sustainability of AI-led revenue growth will be more important than headline deal wins alone. What I'm Watching Next I will monitor North American demand, the conversion of large deals into revenue and operating margins in Q3 FY27. The revised 1–2% FY27 revenue growth guidance will be the key benchmark. Stance: Neutral to cautious. Strong deal wins and AI growth are positives, but weaker demand and reduced guidance limit near-term earnings visibility. Disclosure: I do not have any holding or position in the stock mentioned above.