Infosys net profit rises 13.2% in Q2 FY26 as US, Europe biz recover

Infosys, India’s second-largest technology services exporter, continued to register strong numbers, with net profit rising by 13.2% at the end of the second quarter of FY26, backed by a recovery in its key geographies and business verticals.

The net profit during Q2 stood at Rs 7,364 crore, compared with Rs 6,506 crore in the similar period a year ago. The revenue during this period touched Rs 44,490 crore, which was an annual growth of 8.6%.

“We have now delivered two consecutive quarters of strong growth, demonstrating our unique market positioning and client relevance. Strong deal wins, with 67% net new in Q2, reflect our deep understanding of clients’ priorities to deliver value from AI in this environment,” said Infosys CEO Salil Parekh.

Even the US dollar numbers came in strong for Infosys as revenues rose by 3.7% on a year-on-year basis at the end of the second quarter. This comes in contrast to its larger rival, Tata Consultancy Services, which recorded a flattish growth in revenues in US dollar terms.

Infosys said the large deal total contract value stood at $3.1 billion, with 67% of this being the net new contracts.

The CEO remarked that the large deals pipeline continues to remain strong for the company, and its investments into artificial intelligence (AI) have started to pay dividends. “Our proactive investments, over the last three years, in embracing an AI-first culture within Infosys have ensured that our people are reskilled to thrive in a human+AI workplace,” he said.

During the quarter, Infosys saw positive growth across the geographies of North America and Europe. It recently announced bagging a £1.2 billion ($1.6 billion) deal from the NHS Business Services Authority of the UK.

However, the operating profit margins saw a marginal drop in the second quarter to touch 21%, compared with 21.1% a year ago.

Infosys CFO Jayesh Sanghrajka said, “We had robust all-round performance in Q2—strong growth, resilient margins, very high cash generation and 13.1% EPS growth year on year in rupee terms. We continue to make strategic investments to futureproof the business with a tight focus on execution, amidst high uncertainty.”

Infosys remained positive on the human resources front as it added 14,203 employees over the last year, with its total headcount at the second quarter reaching 331,991. It plans to hire 12,000 freshers during the course of the current fiscal year.

On the impact of new H-1B regulations by the United States, the Infosys CEO said the majority of its employees in the US do not require immigration support and will continue to look at multiple options like nearshoring, local hiring and localisation as part of its future efforts.