$INFY Q2 Revenue Misses Estimates as AI Revenue Jumps 29% QoQ

Infosys reported a mixed Q2 FY27 earnings print, with both revenue and EPS coming in slightly below expectations.
$INFY generated $5.15 billion in revenue versus the $5.19 billion estimate, up 1.3% year over year.
Diluted EPS came in at $0.20 versus $0.21 expected.
Constant-currency revenue increased 1.5% year over year and 1.2% sequentially, while operating margin was 21.0%.
For FY27, Infosys continues to guide for 1% to 2% constant-currency revenue growth and a 20% to 22% operating margin.
Large deal total contract value reached $5.2 billion, with 62% coming from net-new business.
Free cash flow was $928 million, equal to 113.3% of net profit.
The standout metric was AI.
AI-related revenue represented 10.5% of total revenue and grew 29% quarter over quarter.
That suggests AI is becoming an increasingly meaningful contributor to Infosys even as overall company growth remains relatively modest.
The key question for $INFY is whether accelerating AI demand can eventually translate into faster company-wide revenue growth rather than primarily shifting the mix of existing IT spending.