# Infosys reports AI revenue at 10.5% of Q2 sales, up 29% quarter‑on‑quarter

Digest AI · Business & Funding · published 2026-10-23T12:53:11Z

Canonical: https://digestai.news/story/infosys-reports-ai-revenue-at-10-5-of-q2-sales-up-29-quarteronquarter

## 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.

Free 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.

## Key points

- 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

## Why it matters

The rapid AI revenue growth shows Infosys’s expanding role in enterprise AI, signaling market demand and influencing investor expectations for tech services firms.

## Sources

1. [Parekh: AI Now Delivers 10.5% of Infosys Q2 Revenue, Up 29% Sequentially](https://unite.ai/parekh-ai-now-delivers-10-5-of-infosys-q2-revenue-up-29-sequentially) (Unite.AI, 2026-10-23)

## Cite

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

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