Infosys Q2 net profit rises 6.4% to ₹7,838 cr, cuts guidance on weak demand
Infosys reported a 6.4% rise in net profit but lowered its revenue guidance due to weak demand in the US and deflationary pressures from AI. The company is focusing on cost-optimization deals as it navigates a volatile economic environment.
Why it matters
As a major IT services firm, Infosys's performance and outlook serve as a bellwether for the global technology outsourcing sector and the impact of AI on corporate spending.
Information technology services firm Infosys, the country's second-largest, has reduced its revenue forecast for 2026-27 because growth in its largest market, the United States (US), is expected to weaken and deflationary pressure from artificial intelligence (AI) is anticipated to increase. On Friday, the company said it expected revenues to grow 1-2 per cent in constant currency, down from the 1.5-3 per cent it expected three months ago. Its net profit for the second quarter rose 6.2 per cent to ₹7,828 crore while revenues were up 10.7 per cent to ₹49,244 crore, helped by its financial-services, and energy and utilities businesses. While net profit missed analyst estimates, revenues exceeded those. Analysts polled by Bloomberg had expected net profit and revenues to be ₹7,904 crore and ₹49,108 crore, respectively.
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