Infosys reports stronger AI revenue while lowering its wider growth outlook

Second-quarter results show 29% sequential AI revenue growth alongside revised 1%–2% full-year constant-currency guidance.

Infosys reported second-quarter revenue of $5.145 billion on October 23 and revised its full-year constant-currency revenue growth guidance to 1%–2%. The results pair slower company-wide growth with a reported 29% sequential increase in AI revenue.

The company said revenue grew 1.5% year on year and 1.2% from the preceding quarter in constant currency. Operating margin was 21%, and full-year margin guidance remained 20%–22%. Its figures come from the company’s results announcement and exchange filing.

AI growth and total growth measure different things

A rapid increase in one activity can coexist with a more modest result across the business. The AI figure is a sequential measure for that category; it should not be read as the growth rate for Infosys as a whole.

Infosys also reported $5.2 billion in large-deal total contract value, with 62% described as net new. Contract value is distinct from revenue recognised in the quarter and does not establish when every part of a deal will become billable work.

A transition visible in the reporting

The release highlights both demand for AI-related services and the conditions affecting the broader services business. It is evidence of the company’s reported performance and outlook, rather than proof that AI alone caused the guidance change.

For customers and industry observers, the useful comparison is how those categories develop over subsequent reporting periods. Signed work, delivered services and recognised revenue sit at different stages of that process.

The October 23 figures describe a business balancing expanding AI activity with a slower overall growth outlook. They do not by themselves provide a forecast for its share price.

Sources

- [Infosys Q2 FY27 results and revised guidance](https://www.infosys.com/investors/documents/exchange-filings/2026/outcome-board-meeting23oct2026.pdf) — Infosys / stock-exchange filing - [Infosys differentiated AI strategy and second-quarter results](https://www.prnewswire.com/news-releases/infosys-differentiated-ai-strategy-and-a-sharp-focus-on-value-unlock-propels-29-sequential-growth-in-ai-revenues-302918095.html) — Infosys via PR Newswire