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Call sheet · Q2'27

Infosys (INFY)

Q2'27 earnings call · held October 23, 2026 · compared with the Q1'27 call · management-credibility review
8/12
Disclosure score
1 high, 4 medium, 5 low flags
Financial quality
Bottom line
The sleeper story isn't the AI headline, it's what Infosys stopped telling you: DSO, large-deal net-new %, coding-tools headcount, and EPS growth all vanished from the call the same quarter guidance got cut. The obvious headline is a 'standout' AI quarter (10.5% of revenue, $5.2B in large deals including two mega deals), but dig in and the binding constraint is explicit: 'there is the AI which is giving us the growth, there is AI which is also seeing the compression and we continue to see that', AI-driven deflation and competitive pricing are now eating into growth faster than AI bookings can offset it. The $2B net-new mega deal, the best piece of real news this quarter, delivers almost nothing until FY28, meaning FY27 has no fresh growth lever left. My view changes if next quarter brings back the net-new % disclosure and shows it above 50%; if it stays hidden, assume renewal-heavy TCV is masking a real net-new demand slowdown.

The 30-second version

  • The metrics that vanished are more telling than the ones they kept
  • Guidance was 'narrowed,' but the midpoint got cut
  • Management dodged two pointed questions on the record

What changed this quarter

MetricQ1'27Q2'27Change
Revenue growth YoY (CC)2.4%1.5%-90bps deceleration
Revenue growth QoQ (CC)1.0%1.2%+20bps, still anemic
AI revenue % of total8.2%10.5%+230bps, headline standout
Large deal TCV$3.6B$5.2B+44% QoQ, includes 2 mega deals
Large deal net-new %61%Not disclosedMetric vanished while one of two mega deals is a renewal
Operating margin21.1%21%-10bps, effectively flat
Free cash flow$955M$922M-3.5% QoQ
EPS growth YoY+15%Not repeated on this callHeadline metric dropped
FY revenue growth guidance (CC)1.5%-3%1%-2%Midpoint cut ~75bps
FY margin guidance20%-22%20%-22%Unchanged

Accountability tracked

4 new promises made6 narrative shifts flagged5 prior promises scored
Inside the full report
The complete write-up covers the full promise ledger with kept/missed calls, disclosure-quality scoring, the metrics-vanished check, verification items, and the questions to ask next quarter.
Read the full INFY Q2'27 report Subscribe
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Scores, kept-promise rates, and flags on this site reflect the author's opinion, applying a stated methodology to statements management made on public earnings calls. Informational and educational purposes only - not investment advice, a recommendation, or an offer to buy or sell any security. Sources believed reliable but not guaranteed; the author may hold positions in the securities discussed.

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