{"version":1,"type":"story","url":"https://digestai.news/story/infosys-reports-ai-revenue-at-10-5-of-q2-sales-up-29-quarteronquarter","json":"https://digestai.news/story/infosys-reports-ai-revenue-at-10-5-of-q2-sales-up-29-quarteronquarter.json","markdown":"https://digestai.news/story/infosys-reports-ai-revenue-at-10-5-of-q2-sales-up-29-quarteronquarter.md","slug":"infosys-reports-ai-revenue-at-10-5-of-q2-sales-up-29-quarteronquarter","headline":"Infosys reports AI revenue at 10.5% of Q2 sales, up 29% quarter‑on‑quarter","summary":"Infosys posted Q2 revenue of $5,145 million for the quarter ended September 30, 2026, with a 21.0% operating margin. AI‑related revenue represented 10.5% of total sales and grew 29% from the prior quarter, according to CEO Salil Parekh. The company also secured large‑deal contracts worth $5.2 billion, 62% of which were net new, including a mega deal exceeding $2 billion.\n\nFree cash flow fell to $928 million, a 15.7% year‑on‑year decline, but still covered 113.3% of net profit. Infosys revised its FY 2027 revenue outlook to 1%‑2% growth in constant currency and kept its operating‑margin target of 20%‑22%. The board approved an interim dividend of 26 rupees per share, a 13% increase from the prior year. The quarter saw new client engagements with Crocs, Mondelez International, Knorr‑Bremse, Metsä Group, NTN Corporation, Telia, KnitWell Group and Investec, among others.","keyPoints":["AI revenue made up 10.5% of Q2 revenue and rose 29% quarter‑on‑quarter, CEO Salil Parekh said","Large‑deal wins totalled $5.2 billion, 62% net new, including a mega deal of over $2 billion","Free cash flow was $928 million, down 15.7% YoY, but covered 113.3% of net profit"],"whyItMatters":"The rapid AI revenue growth shows Infosys’s expanding role in enterprise AI, signaling market demand and influencing investor expectations for tech services firms.","category":{"slug":"business","name":"Business & Funding","url":"https://digestai.news/category/business"},"entities":{"companies":["Infosys","Crocs, Inc.","Mondelez International","Knorr‑Bremse","Metsä Group","Investec"],"models":[],"people":["Salil Parekh","Jayesh Sanghrajka"]},"firstPublishedAt":"2026-10-23T12:53:11Z","updatedAt":"2026-10-23T12:53:11Z","sourceCount":1,"hasPrimarySource":false,"sources":[{"outlet":"Unite.AI","title":"Parekh: AI Now Delivers 10.5% of Infosys Q2 Revenue, Up 29% Sequentially","url":"https://unite.ai/parekh-ai-now-delivers-10-5-of-infosys-q2-revenue-up-29-sequentially","publishedAt":"2026-10-23T12:53:11Z","type":"press","primary":false,"lead":true}],"sourceNotes":null,"discussions":[],"thread":null,"cite":{"text":"Digest AI, \"Infosys reports AI revenue at 10.5% of Q2 sales, up 29% quarter‑on‑quarter\", 23 October 2026, https://digestai.news/story/infosys-reports-ai-revenue-at-10-5-of-q2-sales-up-29-quarteronquarter","publisher":"Digest AI","title":"Infosys reports AI revenue at 10.5% of Q2 sales, up 29% quarter‑on‑quarter","datePublished":"2026-10-23T12:53:11Z","url":"https://digestai.news/story/infosys-reports-ai-revenue-at-10-5-of-q2-sales-up-29-quarteronquarter"},"generatedBy":"Written by Digest AI's editorial model from the linked sources; the sources are the record.","license":"Headlines, digests and key points are written by Digest AI and may be quoted with a link to the story page. Linked articles belong to their publishers. Terms: https://digestai.news/terms#reuse"}