Infosys says AI now generates 10.5 per cent of revenue as it books a $2 billion mega-deal
Infosys reported Q2 FY27 revenue of $5.15 billion, up 1.5 per cent in constant currency, with AI-related revenue growing 29 per cent quarter on quarter to 10.5 per cent of the total. Large-deal wins reached $5.2 billion, including one contract worth more than $2 billion, while full-year growth guidance narrowed to 1 to 2 per cent.
Infosys has for the first time put a hard number on how much of its business is now driven by artificial intelligence. In results for the quarter ended 30 September, the company said AI revenue accounted for 10.5 per cent of total revenue and grew 29 per cent sequentially, a disclosure that will be watched closely by peers who have so far described AI contribution only qualitatively.
Headline revenue for the quarter was $5,145 million, up 1.5 per cent year on year in constant currency and 1.2 per cent sequentially. First-half revenue reached $10,227 million. The company narrowed its full-year revenue growth guidance to 1 to 2 per cent in constant currency while holding operating margin guidance at 20 to 22 per cent.
The deal pipeline was the strongest part of the story. Large-deal total contract value hit $5.2 billion, with 62 per cent net new, and included a single mega-deal worth more than $2 billion that management expects to add over a percentage point of growth next financial year.
The combination of modest top-line growth and a rapidly rising AI share illustrates the transition under way across Indian IT services. AI is both cannibalising traditional labour-based revenue and opening a new category of platform-led contracts, and the net effect on growth is still close to flat.
Why it matters
A tenth of revenue is a meaningful threshold. It shows enterprise clients are paying for AI-led delivery at scale, not just for proofs of concept, and it gives investors a metric to track across the sector. It also puts pressure on competitors to disclose comparable figures.
Indicops view
For buyers, the lesson is that AI capability is becoming embedded in large outsourcing contracts rather than purchased separately, which makes it harder to evaluate what is actually being delivered. We help public-sector and enterprise clients write AI-specific acceptance criteria into service agreements, with measurable productivity and quality outcomes, so that the AI share of a contract means something on the ground and not only in the vendor's quarterly report.
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