Infosys share price will be in focus on Friday after the IT major reported its earnings for the second quarter of FY26. Infosys Q2 results were announced after the stock market closed on October 16. Hence, Infosys shares are expected to remain volatile on Friday, October 17, due to the impact of the earnings.
The initial impact on Infosys Q2 results was seen on the company’s American Depository Receipt (ADR) traded on the NYSE. Infosys ADR came under pressure on Thursday, and fell sharply soon after the opening bell on Wall Street.
First, here’s a look at Infosys Q2 results:
Infosys Q2 Results
Infosys Q2 results were largely in-line with the Street estimates, while the IT major also increased its lower-end of the revenue guidance for FY26. India’s second-largest IT company reported a net profit of ₹7,365 crore in the quarter ended September 2025, registering a growth of 6.4% from ₹6,921 crore in the previous quarter.
The company’s revenue in Q2FY26 grew 5.2% to ₹44,490 crore from ₹42,278 crore, quarter-on-quarter (QoQ). Revenue in dollar terms grew 2.7% QoQ to $5,076 million.
At the operational level, EBIT increased 6.35% QoQ to ₹9,353 crore, while EBIT margin improved by 20 bps QoQ to 21%.
The IT giant narrowed its constant currency revenue growth guidance for FY26 to between 2% to 3% from 1% to 3%. It maintained operating margin guidance of 20% – 22% for FY26.
Infosys also declared a dividend of ₹23 per share. Infosys dividend record date has been fixed as October 27, 2025.
Infosys ADR
Infosys ADR declined 2.25% to $16.07 on Thursday after the company announced its Q2 results, extending its losses for the third consecutive session. The fall in Infosys ADR was also in-line with the broader weakness in the US stock market.
Infosys ADR closed 31.99% short of its 52-week high of $23.63 hit on December 13.
Infosys Q2 Results Review
Infosys delivered an in-line operating performance in Q2, with revenue growth of 2.2% QoQ in Constant Currency (CC) terms, aided by ~20 bps contribution from M&As and improved realizations from Project Maximus amid soft volumes.
Large deal TCV in Q2 was strong at $3.1 billion, of which 67% is net new. In addition, Infosys signed a $1.6 billion mega-deal with NHS after the end of Q2; the deal will start ramping up within the current fiscal year.
“The company has narrowed its FY26 revenue growth guidance to 2-3% CC (earlier 1-3%), implying CQGR of -0.2% to -1.5% in H2. H2 is expected to be seasonally softer due to fewer working days, furloughs, and calendar effects, and the revised guidance incorporates elevated uncertainty at the lower end and a stable environment at the upper end,” said Dipeshkumar Mehta, Senior Research Analyst at Emkay Global Financial Services Ltd.
Mehta largely retained FY26-28E EPS estimates for Infosys, factoring in in-line Q2 results. He has retained a ‘Buy’ rating on Infosys shares with a target price of ₹1,650 apiece, valued at 21x Sep-27E EPS.
According to Antique Stock Broking, Infosys Q2 results were better than expectations leading to an increase in the lower end of the guidance.
“Growth recovery is visible, but still gradual; the upgraded guidance from 1–3% to 2–3% reflects confidence in deal ramp-ups. After strong H1 growth 3.3% CC, the guidance range implies flattish to slightly decline in H2. Commentary suggested, clients continue to be cautious on their discretionary spending,” said the brokerage firm.
It kept the EPS estimates unchanged and maintained a ‘Hold’ rating on the stock with Infosys share price target of ₹1,675 at a target multiple of 22x.
Infosys share price has fallen 3% in one month and gained over 4% in six months. On a year-to-date (YTD) basis, the largecap IT stock has declined 22%, while it has fallen 23% in one year. Infosys share price has gained 31% in five years.
On Thursday, Infosys share price ended 0.08% lower at ₹1,472.75 apiece on the BSE.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
