Infosys Shares Jump 2.6% in Opening Trade on Robust Q2 Performance and Share Buyback Plans

Infosys Ltd, India’s second-largest IT services company, saw its shares rise 2.6% at market open on October 23, 2025. The bullish movement follows the company’s robust Q2 FY26 results announced earlier in the month, which surpassed market expectations and rekindled investor optimism.

During Q2, Infosys posted a consolidated net profit of Rs 7,364 crore, reflecting a 13.2% year-on-year growth. Its revenue surged 8.6% to Rs 44,490 crore in the same period. The company witnessed a 2.2% sequential rise in revenue in constant currency terms, supported by steady demand from financial services and manufacturing sectors, along with a $3.1 billion large deal total contract value (TCV), of which 67% were net new deals.

Additionally, Infosys declared an interim dividend of Rs 23 per equity share with the record date set for October 27, 2025, providing direct returns to shareholders. Investors also favored the company’s aggressive capital allocation strategy, approving its largest-ever Rs 18,000 crore share buyback, set at Rs 1,800 per share, which is a 19% premium over the stock’s pre-announcement price.

The company’s operating margin remained stable at 21%, aligning with its FY26 guidance of 20-22%, while it raised its revenue growth guidance to 2-3% in constant currency from the earlier 1-3%.

Key Highlights:

Infosys shares jumped 2.6% in opening trade on October 23, 2025.

Q2 FY26 net profit grew 13.2% YoY to Rs 7,364 crore; revenue rose 8.6% YoY to Rs 44,490 crore.

Large deal TCV reached $3.1 billion, with 67% net new deals.

Interim dividend declared at Rs 23 per share; record date October 27, 2025.

Share buyback of Rs 18,000 crore approved at Rs 1,800/share (19% premium).

Operating margin steady at 21%; FY26 revenue growth guidance raised to 2-3%.

Investor sentiment boosted by strong execution, deal pipeline, and capital return plans.

Major Takeaway:
Infosys’ strong quarterly results, coupled with shareholder-friendly initiatives like dividends and a sizeable share buyback, have reignited investor confidence. The company’s clear growth trajectory and robust deal wins position it well for sustained performance in FY26 and beyond.

Sources: Economic Times, Moneycontrol, Business Standard, NSE India, Financial Express.