Infosys shares: Should you buy the IT stock after Q2 results, dividend 2026 announcement? Expert view on what to do
Infosys shares: IT major Infosys posted its earnings for the quarter ended September 2026 (Q2 Results) on Friday, October 24. The Bengaluru-based firm delivered year-on-year growth in profit and revenue, announced a sharper-than-expected cut to its full-year growth forecast.
The company lowered its revenue growth guidance for FY27 to 1%-2% from the earlier range of 1.5%-3%, disappointing investors who had anticipated a narrower reduction to 1.5%-2.5%.
Infosys reported consolidated net profit of ₹7,823 crore for the September quarter, marking a 6.2% increase from ₹7,364 crore in the corresponding period last year. Consolidated revenue from operations rose 10.2% year-on-year to ₹49,244 crore from ₹44,490 crore.
AI-related revenue accounted for 10.5% of total revenue and grew 29% quarter-on-quarter, indicating the increasing contribution of AI-led services to the company's business.
CEO and Managing Director Salil Parekh said Infosys secured large deals worth $5.2 billion during the quarter, including a mega deal valued at more than $2 billion.
However, the company lowered its FY27 revenue growth forecast to 1%-2%, compared with its previous guidance of 1.5%-3%. Infosys had already reduced its full-year forecast in the June quarter, from 1.5%-3.5% to 1.5%-3%, citing macroeconomic uncertainty and its assessment of demand for the remainder of the financial year.
Jayesh Sanghrajka, CFO of Infosys, attributed the latest revision to competitive intensity and customer expectations around productivity. “We are seeing pricing pressures on intense competition and customers asking for higher productivity. That's reflecting in our revised guidance,” he said.
“We delivered operating margins of 21.0% in Q2 amidst heightened volatility. Focus on cost and operational efficiency measures, while making the required investments, has led to stable margins,” said CFO Jayesh Sanghrajka.
Infosys’ board of directors on Friday approved an interim dividend of ₹26 per share, equivalent to 500% of the stock’s face value. Along with the dividend announcement, the company also finalised the record date for identifying eligible shareholders and the timeline for payment.
According to Infosys’ filing with the BSE, November 3 has been fixed as the record date to determine shareholders eligible to receive the interim dividend. Investors must hold the company’s shares as per the applicable record-date requirements to qualify for the payout. The dividend payment is scheduled to be completed by November 11.
Infosys shares ended 0.3% higher at ₹1,154.50 on the BSE on Friday, before the company announced its Q2 results after market hours. However, its American depositary receipts (ADRs) fell 6.5% to $12.35 on Friday following the results announcement.
The stock has declined 0.6% over one week but gained 13% over one month and 10% over three months. Over longer periods, it has fallen 7% in six months and 25% in one year.
Infosys is currently around 33% below its 52-week high of ₹1,727.85, recorded in February 2026. It touched a 52-week low of ₹980.30 in September 2026.
The recent performance reflects the challenges facing the IT sector, with investors monitoring revenue guidance, client spending and the impact of AI on traditional services.
Expert views on the stock’s technical indicators and key support and resistance levels offer further insight into its near-term trajectory.
Jigar S Patel, Senior Manager – Technical Research at Anand Rathi Share and Stock Brokers, said Infosys was struggling near its previous major swing high of ₹1,193.50. The stock faced selling pressure around this level during the week and closed below it, suggesting that sustained buying interest had yet to emerge at higher prices.
Although the hourly Relative Strength Index (RSI) indicated improving bullish momentum, Patel cautioned that a short-term pullback remained possible. He identified ₹1,195 as the key resistance level and said a decisive daily close above it would strengthen the bullish outlook and help confirm the formation of a major bottom.
On the downside, ₹1,050 remains an important support level. Patel said long-term investors could consider accumulating the stock on dips for portfolio allocation, while fresh short-term trading positions should be avoided until a sustained breakout above ₹1,195 confirms a stronger recovery.
“Overall, long-term investors may consider accumulating the stock on dips for portfolio allocation. However, fresh short-term trading positions are not advisable until a sustained breakout above ₹1,195 confirms a stronger recovery,” Patel added.
For investors, the decision will depend on their investment horizon and risk appetite. While Infosys reported growth in quarterly profit and revenue and secured large deals, its reduced guidance highlights continuing demand and pricing challenges.
Pranati Deva is a seasoned financial journalist with over a decade of experience in high-pressure newsroom environments, currently working as a Senior Sub Editor at LiveMint. Over the years, she has developed a reputation for sharp editorial judgement, a strong grasp of market dynamics, and the ability to translate complex financial developments into clear, engaging stories for a wide audience. <br><br> Her core areas of coverage include stock markets, leading listed companies, currencies, and commodities, with a particular strength in fast-paced, real-time market reporting. She is known for handling breaking market news, earnings-driven stock movements, and macroeconomic developments with speed, accuracy, and context—qualities that are essential in financial journalism. <br><br> Pranati has built a diverse and credible professional track record across some of India’s most respected news organisations, including MintGenie, CNBC-TV18, Business Standard and EconomicTimes.com. During her stints at these platforms, she produced data-driven market stories, curated and steered live blogs during volatile trading sessions, and conducted interviews with market veterans, fund managers, economists, and industry experts. Her work often combines on-ground reporting with analytical depth, helping readers make sense of daily market fluctuations and longer-term trends. An alumnus of the Symbiosis Institute of Media and Communications and Hansraj College, University of Delhi, Pranati brings a strong academic foundation to her journalism. She specialises in real-time financial reporting, with a keen focus on precision, balance, and insight, aiming to decode market movements in a way that is both informative and accessible to readers across experience levels.
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