Tech major Infosys will announce its financial results for the second quarter of fiscal year 2026 today. Amid the subdued demand environment and apprehensions of AI affecting tech majors’ business, all eyes will be on the company’s revenue, profit and margin pressure.
In Q1 FY26, Infosys reported a 7.5 per cent YoY revenue growth and 8.7 per cent YoY profit growth. The company’s revenue and profit in Q1 FY26 stood at Rs 42,279 crore and Rs 6,921 crore, respectively.
While Infosys outperformed its peers in the last quarter in terms of growth, profitability, and margin, apprehensions remain high this quarter as the entire IT sector is facing uncertainty due to tariffs, H-1B visa cancellations, and other AI-related developments.
Here are the key expectations with respect to Infosys’ Q2 performance
Infosys Q2FY26 preview: Revenue and growth expectation
Kotak Securities expects a moderate 1.8 per cent QoQ revenue growth for Infosys in Q2. The firm states that higher billing days and a strong performance in the finance vertical of the business will support revenue growth. However, Kotak Securities does not expect any incremental revenue gain from the sale of the third-party products.
Kotak Securities says that Infosys’ EBIT margin will remain stable in Q2 on both a QoQ and a YoY basis. Furthermore, Kotak states that the company will benefit from rupee depreciation; however, its effect will be neutralised as the company is likely to increase provisions for post-sales support.
Infosys’s larger order deals in the second quarter are expected to increase by 22 per cent Yoy growth. As per the Kotak estimates, Infosys is likely to report $3 billion worth of large deal TCV. However, Kotak warns that the IT major’s large deal TCV is likely to decline on a quarterly basis.
The Kotak report states that Infosys will raise its FY26 revenue growth guidance to 2-3 per cent from 1-3 per cent previously.
Infosys Q2FY26 preview: Big concerns for Infosys investors
Apart from concerns about revenue growth, investors will also pay special attention to factors such as the H-1B visa, pricing, and AI adoption. Kotak Securities states that investors will be watching for the cancellation of the H-1B visa programme by the United States and its impact on various business verticals. Additionally, it remains to be seen how will imposition of tariffs by the US will affect the company.
In Infosys’ Q2 results, another key focus area for the investors will be the pricing pressure on the large deals. Kotak Securities states that the pace of adoption of enterprise AI within the company, as well as the subsequent pricing and deflationary pressure, will be among the highlights of the company’s Q2 results.
Additionally, the investors will also look at the company’s attrition rate as the industry-wide size reduction continues.
