#Infosys Latest
Infosys Ltd ADR (NYSE:INFY) has reported a strong performance in its latest quarter (Q2 FY26), with net profit growing around 13% year-on-year to ₹7,364 crore. The company’s revenues rose about 8.6% to ₹44,490 crore, or roughly 2.9% in constant currency, reflecting steady execution in a cautious economic environment.
Infosys secured $3.1 billion in large deal bookings, with approximately two-thirds representing new business. It managed to maintain its operating margin near 21%, in line with guidance. The company also announced an interim dividend of ₹23 per share and approved a record ₹18,000 crore share buyback via the tender route at ₹1,800 per share, underscoring management’s confidence in its growth outlook.
A major highlight this quarter was Infosys winning a £1.2 billion (15-year) contract with the UK’s National Health Service (NHS). The project will replace the NHS’s existing workforce and payroll system, covering around 1.9 million employees and managing about £55 billion in annual payrolls. This long-term deal significantly enhances revenue visibility for the company.
However, Infosys continues to face challenges including subdued global IT spending, wage-driven margin pressure, and currency volatility. Regulatory shifts in major markets such as the U.S. and UK, particularly regarding visa and labor policies, remain ongoing risks.
#What Investors Need to Know About Infosys
Infosys reported a 13% increase in net profit year-on-year.
It secured $3.1 billion in large deal bookings, with about 67% net new business.
An operating margin of approximately 21% was maintained.
The company declared an interim dividend of ₹23 per share.
Infosys approved a record ₹18,000 crore buyback program at ₹1,800 per share.
#Infosys At A Glance
Infosys is a global leader in next-generation digital services and consulting. Headquartered in India, it provides a wide range of services and solutions that help businesses navigate digital transformation effectively. The company focuses on innovation and technology solutions across sectors including banking, healthcare, and manufacturing.
#Competitive Landscape
Infosys operates in a highly competitive environment, facing strong rivalry from other major IT companies such as Tata Consultancy Services (TCS), Wipro, and Accenture Plc (NYSE:ACN). These firms compete on digital transformation, consulting, and cloud services, creating ongoing pressure on pricing and differentiation.
#Near-Term Catalysts and Risks
Infosys benefits from a strong order pipeline and sustained large-deal momentum, providing revenue visibility in the medium term. The record buyback and healthy dividend policy also signal confidence in the company’s cash flows.
However, the near-term outlook remains tempered by slower global IT budget growth, inflation-driven wage pressures, and possible regulatory or visa policy shifts in key client markets. Execution challenges on large, long-term contracts such as the NHS deal may also need close monitoring.
#Trading Infosys Stock
When considering Infosys as part of a broader portfolio, assess its valuation relative to peers and growth prospects. The combination of a strong balance sheet, steady margins, and consistent shareholder returns positions it as a stable long-term investment.
That said, near-term performance will likely depend on global technology spending trends, foreign exchange movements, and Infosys’s ability to sustain profitability within its 20–22% operating margin band.
#FAQ
Why should I invest in a technology stock?
Technology stocks provide exposure to sectors driving global innovation and economic growth. Companies like Infosys often show resilient performance and long-term growth potential.
How do market changes affect Infosys?
Infosys’s revenue is directly influenced by enterprise IT spending. Economic slowdowns or reduced corporate budgets can impact both deal flow and profitability.
What is the significance of dividends?
Dividends represent a portion of a company’s earnings distributed to shareholders, signaling financial health and a commitment to delivering consistent value. Discover six Dividend King stocks with nearly 70 years of rising payouts.
How can I assess Infosys's performance?
Key metrics include revenue growth, profit margins, order book trends, and deal pipeline strength. Comparing these to peers and overall industry trends helps gauge performance.