Infosys Limited ($INFY) Stock: Q2 Earnings Smash Expectations With $5.08B Revenue and Robust Cash Flow as FY26 Targets Hold Firm

Infosys delivers another quarter that leaves analysts scrambling to upgrade their spreadsheets.

The Numbers That Matter

$5.08 billion in revenue pours in during Q2, beating even the most optimistic projections. Cash flow remains strong enough to make treasury departments blush. The company's FY26 guidance stands untouched—either a sign of supreme confidence or corporate stubbornness, depending on which analyst you ask.

Execution Over Promises

While other tech firms talk about transformation, Infosys keeps delivering quarter after quarter. The steady performance suggests either brilliant strategic planning or incredibly conservative forecasting—because nothing says 'we know what we're doing' like consistently lowballing your own targets.

Market Response

Investors cheer the results, pushing shares higher in pre-market trading. The steady hand approach continues to pay dividends, literally and figuratively. Another quarter, another beat—almost makes you wonder if they've figured out this whole 'business' thing better than the competition.

Closing Thought: In a world where tech companies promise moonshots and deliver excuses, Infosys keeps hitting its numbers with the boring reliability that makes accountants sleep well at night—and hedge fund managers slightly disappointed there's no drama to trade on.

TLDR

• Q2 2025 revenue rose 3.7% YoY to $5.08B, surpassing estimates of $5.04B.
• Net income stood at $839M, with EPS rising 7.9% YoY to $0.20.
• Free cash flow hit $1.1B, up 31.2% YoY, marking 131% of net profit.
• FY26 guidance reaffirmed with 2%-3% revenue growth and 20%-22% margins.
• Infosys announced a ₹18,000 crore share buyback and ₹23 interim dividend, up 9.5% YoY.

Infosys Limited (NYSE: INFY) stock traded at $15.85, down 3.56% as of 10:10 AM EDT, after releasing its second-quarter results for the period ended September 30, 2025.

Infosys Limited (INFY)

The IT services giant reported revenue and profit growth that met market expectations, reaffirming its full-year guidance amid resilient performance across business segments.

Strong Q2 Performance and Earnings Growth

Infosys reported adjusted earnings of $0.20 per share, up from $0.19 a year earlier and in line with analyst expectations. Quarterly net income reached $839 million, up from $777 million last year. Total revenue ROSE 3.7% year-over-year to $5.08 billion, beating Wall Street’s estimate of $5.04 billion.

Infosys, $INFY, Q2-26. Results:

📊 Adj. EPS: $0.20 🟢
💰 Revenue: $5.08B 🟢
📈 Net Income: $839M
🔎 Strong large deal momentum ($3.1B TCV, 67% net new) and quarterly free cash FLOW of $1.1B, over 130% of net income. pic.twitter.com/NRPfdGITvF

— EarningsTime (@Earnings_Time) October 16, 2025

In constant currency, revenue grew 2.9% YoY and 2.2% sequentially, while operating margin came in at 21.0%, reflecting a 0.1% YoY decline but a 0.2% QoQ improvement. CFO Jayesh Sanghrajka noted the company’s “robust all-round performance,” highlighting resilient margins, high cash generation, and a 13.1% EPS increase in rupee terms.

Strong Cash Flow and Capital Returns

Free cash Flow was a major highlight, reaching $1.1 billion, up 31.2% YoY, and representing 131% of net profit. For the first half of FY26, free cash flow stood at $1.98 billion, up 2.7% YoY with a 120% conversion rate.

Infosys’ board approved a share buyback worth ₹18,000 crores and declared an interim dividend of ₹23 per share, marking a 9.5% increase over the previous fiscal year. The company’s strong balance sheet and disciplined capital allocation reflect its continued shareholder focus.

Segment Growth and Deal Momentum

Large deal total contract value (TCV) reached $3.1 billion, with 67% net new business, underscoring the company’s expanding enterprise footprint. The firm added 8,203 employees during the quarter, signaling investment in capacity to meet growing client demand.

For the six months ended September 30, 2025, Infosys reported $10.02 billion in revenue, up 4.3% YoY, with an operating margin of 20.9% and EPS of $0.40, up 6.9% YoY.

FY26 Guidance and Analyst Outlook

Infosys reaffirmed its FY26 revenue growth guidance of 2%-3% in constant currency, while maintaining its operating margin target at 20%-22%. Sanghrajka emphasized continued investment in digital transformation, AI, and automation to futureproof the business amid ongoing global uncertainty.

Analysts remain optimistic, with an average “Buy” rating. Of 14 analysts, 6 rate the stock as “Buy/Strong Buy”, 7 as “Hold”, and 1 as “Sell.” The median 12-month price target stands at $19.51, implying 15.7% upside from the last close.

Infosys shares have gained 1% this quarter but are down 25% year-to-date, reflecting sector-wide volatility. Still, with its stable margins, growing deal pipeline, and shareholder returns, Infosys remains well-positioned for long-term growth in FY26 and beyond.