Infosys Q2 Results: FY26 revenue growth guidance tightened to 2% to 3%; margin unchanged

Technology services bellweather Infosys Ltd. reported its September quarter (Q2FY26) results after market hours on Thursday, October 16. Infosys is the last among the IT companies that are part of the Nifty 50 index to report earnings.

The Bengaluru-based IT services giant expects constant currency revenue growth between 2% to 3% for financial year 2026, compared to its earlier guidance of 1% to 3%. The company had raised the lower end of its guidance in the June quarter.

EBIT margin guidance has been left unchanged. For the full year, Infosys expects EBIT margins for financial year 2026 to be between 20% to 22%.

Infosys reported constant currency revenue growth of 2.2% during the September quarter, higher than the estimates of 1.8% on a sequential basis.

Revenue in rupee terms for the September quarter stood at ₹44,490 crore, which is higher than the CNBC-TV18 poll of ₹44,142 crore. The figure is also higher than previous quarter's revenue of ₹42,279 crore.

Earnings Before Interest and Tax (EBIT) stood at ₹9,353 crore, a growth of 6.25% sequentially but marginally lower than expectations of ₹9,385 crore.

EBIT margin for the quarter remained at 21% from 20.8% in the June quarter and slightly lower than expectations of 21.3%.

Infosys buyback

The Infosys stock has shown resilience since the buyback announcement, gaining 3.3%.

The company's board has approved a ₹18,000 crore buyback through the tender offer route at ₹1,800 per share, representing a 19% premium to the current market price.

Infosys plans to repurchase 2.41% of its outstanding equity shares, marking its fifth share buyback and the largest one in the company's history.

Ahead of its Q2 results, as many as 51 analysts have coverage on Infosys. 36 of those analysts have a “buy” recommendation on the stock, 13 of them have a “hold” rating. Two analysts have a “sell” recommendation.

Shares of Infosys had ended 0.24% lower on Thursday at ₹1,470.90, ahead of the results announcement.