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Investing.com -- Infosys (NSE:INFY) Limited (NYSE:INFY), a global digital services and consulting company, reported second quarter earnings that met analyst expectations while revenue exceeded forecasts, sending shares up marginally by 0.2% following the announcement.
The company reported earnings per share of $0.19 for the quarter, matching the analyst consensus estimate. Revenue came in at $4.94 billion, surpassing the analyst consensus of $4.88 billion. Compared to the same period last year, revenue grew 3.8% year-over-year, while in constant currency terms, the company saw sequential growth of 2.6%.
Operating margin stood at 20.8%, reflecting a slight decline of 0.3% YoY and 0.2% QoQ. Free cash flow generation remained strong at $884 million, representing 109.3% of net profit, though this marked a 19.2% decline from the previous year.
"Our performance in Q1 demonstrates the strength of our enterprise AI capabilities, the success in client consolidation decisions, and the dedication of our over 300,000 employees," said Salil Parekh, CEO and MD of Infosys. "Our large deal wins of $3.8 billion reflect our distinct competitive positioning and deep client relationships."
For fiscal year 2026, Infosys provided guidance projecting revenue growth of 1%-3% in constant currency and operating margin of 20%-22%.
Jayesh Sanghrajka, CFO of Infosys, highlighted the company’s financial discipline: "Q1 performance is a clear reflection of our unwavering focus on multiple fronts resulting in strong growth at 2.6% QoQ, resilient margins at 20.8% and EPS increase of 8.6% YoY. Cash flow conversion was well above 100% for the fifth consecutive quarter."
The company continued to expand its strategic collaborations during the quarter, announcing extended partnerships with clients including Select Portfolio Servicing, AIB, E.ON, DNB Bank ASA, and Yorkshire Building Society.
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