Infosys AI Revenue Jumps 29% Sequentially, FY27 Growth Guidance Cut to 1-2%

IT major Infosys on Friday reported a 29 per cent sequential increase in AI revenue for the September quarter, supported by strong large-deal wins, while revising its full-year revenue growth guidance to 1-2 per cent.

The company reported revenue of USD 5.145 billion for the second quarter of FY27, registering year-on-year growth of 1.5 per cent and sequential growth of 1.2 per cent in constant currency terms. AI contributed 10.5 per cent of total revenue, reflecting growing demand for artificial intelligence-led business transformation.

Infosys secured large deals with a total contract value (TCV) of USD 5.2 billion during the quarter, of which 62 per cent represented net new business. The wins included a mega deal worth more than USD 2 billion.

"Our AI revenue was at 10.5 per cent and grew 29 per cent quarter-on-quarter," Chief Executive Officer and Managing Director Salil Parekh said, attributing the growth to the company's market positioning and client confidence.

For FY27, Infosys revised its revenue growth forecast to 1-2 per cent in constant currency terms, while retaining its operating margin guidance at 20-22 per cent.

The company's operating margin remained stable at 21 per cent during the quarter. Earnings per share increased 8.7 per cent year-on-year in rupee terms, while free cash flow stood at USD 928 million, down 15.7 per cent from the year-ago period.

Chief Financial Officer Jayesh Sanghrajka said cost and operational efficiency measures, alongside investments, helped maintain margins amid heightened volatility.

The board announced an interim dividend of ₹26 per share, marking a 13 per cent increase from the previous year.

Among key business developments, Infosys entered a 10-year strategic agreement with footwear maker Crocs to accelerate its IT transformation. It also partnered with Mondelez International on AI-enabled supply-chain transformation and expanded AI-led engagements with other global clients.

For the first half of FY27, revenue grew 1.9 per cent year-on-year in constant currency terms, while operating margin stood at 21 per cent.