Core Insights - Infosys has launched an AI-first model to help enterprises transform their Global Capability Centres (GCCs) into hubs for AI innovation [1] - The AI-First GCC Model aims to integrate AI technologies throughout the lifecycle of GCCs, positioning them as strategic drivers for business operations and growth [1] Offering Details - The model provides a comprehensive framework for GCC setup, talent strategy development, and operational execution [2] - It includes a unified platform for scaling AI solutions and production-grade AI agents, utilizing tools like Infosys Agentic Foundry, EdgeVerve AI Next, and Infosys Topaz [2] Workforce Development - The offering integrates digital learning resources such as Infosys Springboard and utilizes the corporate university infrastructure to align workforce skills with enterprise needs [3] - Clients can choose from various operating models, including Build-Operate-Transfer (BOT), assisted builds, joint ventures, or partner-hosted options [3] Client Engagements - Infosys has previously engaged with over 100 local GCC entities across various industries [3] - Partnerships include collaborations with companies like Lufthansa Systems, zooplus, and Danske Bank [4] Case Studies - Danske Bank's COO highlighted that their collaboration with Infosys has made their GCC central to their strategy and AI-first vision, integrating AI into their software delivery lifecycle [5] - Lufthansa Systems' CEO noted that their partnership with Infosys has been crucial for their digital transformation, creating a future-ready innovation hub focused on enhancing aviation safety and operational efficiency [6]

Core Insights - Infosys has developed an AI Agent aimed at transforming operations in the energy sector, leveraging its own technologies and Microsoft's AI and cloud capabilities to enhance operational efficiency and decision-making [1][3]. Group 1: AI Agent Features - The AI Agent processes various reports, including well logs and images, to streamline operations and provide predictive insights, which help in anticipating operational challenges [2]. - It enhances safety, reliability, and operational performance while reducing non-productive time (NPT) [2]. Group 2: Collaboration and Industry Impact - The partnership between Infosys and Microsoft combines domain expertise with advanced AI and cloud technologies, aiming to drive measurable business value in the energy sector [3]. - Infosys emphasizes the importance of transforming raw data into actionable insights through conversational AI, addressing the complexities of operational data management in the energy sector [3]. Group 3: Company Overview - Infosys is a global leader in digital services and consulting, with over 320,000 employees and operations in more than 59 countries, focusing on digital transformation powered by cloud and AI [4].

Financial Data and Key Metrics Changes - Company reported a revenue growth of 2.2% sequentially and 2.9% year-on-year in constant currency terms for Q2 FY 2026 [4][8] - Operating margins expanded by 20 basis points sequentially, reaching 21% [10][11] - Free cash flow stood at $1.1 billion, representing 131% of net profit, marking the sixth consecutive quarter above 100% [10][11] - Earnings per share (EPS) in rupee terms grew by 13% year-on-year to INR 17.6 [10] Business Line Data and Key Metrics Changes - Financial services and manufacturing verticals grew above 5% year-on-year in constant currency for both Q2 and H1 [9][13] - The company signed 23 large deals during the quarter, with significant contributions from financial services and manufacturing [12] Market Data and Key Metrics Changes - Europe experienced growth greater than 5% year-on-year in constant currency terms [9] - The company added 8,000 employees during the quarter, bringing total headcount to 332,000 [10] Company Strategy and Development Direction - The company announced a revenue growth guidance of 2%-3% for the financial year, with operating margin guidance remaining at 20%-22% [7][17] - Strategic focus on AI capabilities has positioned the company as a leading enterprise AI services provider, with over 2,500 generative AI projects [18][20] - The company is pursuing a joint venture with Versant in Australia, which is expected to close later this year [7][78] Management's Comments on Operating Environment and Future Outlook - Management noted strong client focus on deploying AI for growth and cost-efficiency programs [4][5] - The company anticipates seasonal factors impacting growth in H2, with lower working days and higher furloughs expected [88] - Management expressed confidence in navigating the changing visa landscape through localization and nearshoring strategies [52][54] Other Important Information - The company announced an INR 18,000 crore buyback through a tender route at INR 1,800 per share, expected to be completed in Q3 [12] - The board approved an interim dividend of INR 23, which is 9.5% higher than the previous year's interim dividend [12] Q&A Session Summary Question: Partnerships with companies building AI capabilities - Management confirmed ongoing partnerships with companies building AI capabilities, focusing on modernization as a significant growth opportunity [30][34] Question: Large deal margins and comfort level - Management stated that while they do not disclose margins separately, they maintain a disciplined approach to large deals to ensure margin profiles are preserved [36] Question: Changes in smaller deal activity - Management indicated no significant changes in smaller deal activity, with a consistent pipeline [39] Question: Impact of H1B visa changes on business model - Management noted that while there is no immediate change, the long-term model will adapt with increased localization and nearshoring [52][54] Question: AI's impact on revenue growth profile - Management highlighted that AI presents both growth opportunities and efficiency improvements, but the current focus is on cost reduction due to economic conditions [69][70]

Financial Data and Key Metrics Changes - Revenues for Q2 FY26 grew 2.2% sequentially and 2.9% year-on-year in constant currency terms, with quarterly revenues crossing $5 billion and $10 billion for the half year [3][6] - Operating margins expanded by 20 basis points sequentially to 21%, with H1 margins at 20.9% compared to 21.1% in H1 FY25 [7][9] - Free cash flow stood at $1.1 billion, representing 131% of net profit, marking the sixth consecutive quarter above 100% [8][9] - Earnings per share (EPS) in rupee terms grew by 13% year-on-year to INR 17.6 [8] Business Line Data and Key Metrics Changes - Financial services and manufacturing verticals grew above 5% year-on-year in constant currency terms for both Q2 and H1 [7][11] - The company signed 23 large deals during the quarter, with significant contributions from financial services, manufacturing, communication, and retail sectors [10][11] - The manufacturing segment faced trade and macro uncertainties, impacting discretionary spending, particularly in the automotive sector [11][12] Market Data and Key Metrics Changes - Four of the five large industry verticals and three of the four geographies grew year-on-year in constant currency terms [3] - Europe experienced growth greater than 5% year-on-year in constant currency terms [7] - The deal pipeline remains strong, with a focus on cost reduction and operational efficiency across various sectors [12][13] Company Strategy and Development Direction - The company has revised its revenue growth guidance for the financial year to 2% to 3% in constant currency terms, maintaining operating margin guidance at 20% to 22% [5][14] - Infosys is positioning itself as a leading enterprise AI services provider, with a focus on AI-driven initiatives and modernization projects [4][15] - The strategic approach includes a joint venture with Versent in Australia, aimed at enhancing service capabilities [5][6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate macro uncertainties and highlighted strong client demand for AI and modernization initiatives [11][14] - The company anticipates seasonal factors impacting growth in H2, with lower working days and potential furloughs [14][68] - Management noted that while there is uncertainty in the environment, the overall pipeline and signing remain strong [11][44] Other Important Information - The company added 8,000 employees during the quarter, with a total headcount of 332,000 [8] - Cash and investments totaled $6.2 billion at the end of the quarter, with a yield on cash balance of 6.98% [9] - The company announced an INR 18,000 crore buyback plan and an interim dividend of INR 23, reflecting a 9.5% increase from the previous year [10] Q&A Session Summary Question: Partnerships with companies building AI capabilities - Management confirmed ongoing partnerships with companies expanding AI capabilities, focusing on modernization as a significant growth opportunity [28][30] Question: Large deal margins and comfort level - Management stated that while they do not disclose margins separately, they maintain a disciplined approach to large deals to ensure margin profiles are preserved [31] Question: Smaller deal activity and average sizes - Management indicated no significant changes in smaller deal activity, with a consistent structure in deal sizes [33][34] Question: Impact of H1B visa changes on business model - Management noted that while there is uncertainty, they have been working on localization strategies to adapt to changes in the visa landscape [44][45] Question: AI's impact on revenue growth profile - Management highlighted that AI presents both growth opportunities and efficiency improvements, with a focus on cost reduction in the current economic environment [55][56] Question: Seasonal softness and employee additions - Management explained that the addition of employees was driven by demand visibility, despite anticipated seasonal softness in H2 [74]

Core Insights - Infosys Ltd secured a $1.6 billion contract with the UK's National Health Service, marking its first major deal in two years and the fourth-largest under CEO Salil Parekh [1][3] - The contract involves managing the NHS Business Services Authority's back-end IT infrastructure for 15 years, expected to generate over $107 million annually until 2040, contributing a guaranteed 0.6% incremental revenue in FY26 [1][2] - This deal signifies a turnaround for Infosys, ending a drought in mega deals valued over $1 billion, with the last similar contract awarded two years ago [3] Financial Impact - The total value of the new contract exceeds $1.4 billion, representing 6.8% of Infosys's full-year revenue from the healthcare and life sciences vertical in FY25 [2] - Infosys concluded FY25 with a revenue of $19.28 billion, indicating a significant addition to its revenue stream from this contract [1] Competitive Positioning - The deal enhances Infosys's competitive position against Cognizant Technology Solutions, which was ahead by $304 million as of June 2025 [5] - CEO Parekh's leadership is highlighted as Infosys outperformed larger rival Tata Consultancy Services and smaller competitors HCL Technologies and Wipro in the first quarter [4] Industry Context - The contract is noted as one of the largest public-sector technology partnerships of the decade, reflecting growing confidence in Indian IT firms as long-term transformation partners [6] - The deal is part of a trend where major Indian IT outsourcers are securing large contracts after a period of uncertainty, with Infosys being the fourth to win a mega deal this year [6][7] Future Outlook - Infosys plans to develop a data-driven workforce management solution to replace the current Electronic Staff Record system, which manages payroll for 1.9 million NHS employees [5] - The company aims to leverage its experience in digital transformation and AI offerings to enhance NHS operations [9]

Core Insights - Infosys has been awarded a £1.2 billion, 15-year contract by the NHS Business Services Authority to deliver the Future NHS Workforce Solution, which aims to modernize workforce management for the NHS [1][2][6] Group 1: Contract Details - The contract is part of the NHS's 10-year Health Plan, focusing on creating a future-ready workforce [3][6] - The new solution will replace the existing Electronic Staff Record system and manage payroll for 1.9 million NHS employees, amounting to over £55 billion annually [1][4] Group 2: Solution Features - The Future NHS Workforce Solution will provide a modern, flexible, and integrated platform covering the entire employee lifecycle, including recruitment, onboarding, payroll, career development, and retirement [4][5] - Advanced technologies will power the solution, offering AI-driven tools for streamlined workforce planning and data-driven decision-making [4][5] Group 3: Strategic Importance - The solution is positioned as a strategic enabler for the NHS to better attract, retain, and support its workforce, going beyond merely replacing the existing system [6] - Infosys emphasizes its commitment to delivering generational change for NHS employees through this partnership, leveraging its experience in digital transformation [6][9]

Core Insights - Infosys has launched the Infosys Customer Experience Suite for Salesforce, aimed at automating and optimizing customer engagement processes for organizations looking to scale digital operations and integrate AI-driven automation across various channels [1][6] - The suite utilizes Infosys Topaz and Salesforce's agentic AI capabilities to automate service requests, sales workflows, and employee support functions, enhancing personalized customer interactions [2][6] - The solutions are designed for interoperability with existing enterprise systems, ensuring real-time data processing and compliance with regulatory and ethical standards [3] Implementation and Impact - The suite has been deployed in production environments, with one implementation at a research institute leading to reduced process inefficiencies and improved response times [4] - A media company deployment utilized Salesforce's agentic AI to decrease transactional inquiries, minimize spam, and shorten case resolution times [5] - Fluido, an Infosys subsidiary, played a role in redesigning customer experience frameworks, focusing on process simplification and data harmonization with AI as a core component [5] Strategic Positioning - Infosys aims to provide enterprises with scalable automation tools to support digital transformation and measurable operational improvements [6] - The collaboration with Salesforce positions Infosys to empower businesses in adapting to the evolving landscape of AI services [4][6]

Core Insights - Infosys has launched the Infosys Customer Experience Suite for Salesforce, enhancing its collaboration with Salesforce to support enterprises in their digital transformation initiatives [1][4] - The suite leverages Infosys Topaz and Salesforce's agentic AI capabilities to automate customer interactions, streamline processes, and enhance personalization [2][4] - The solutions aim to drive measurable efficiencies across sales, services, and marketing channels, ensuring operational success for enterprises [2][4] Company Developments - Infosys deployed Agentforce SDR to improve the sales process for a leading research institute, significantly reducing response times and addressing inefficiencies [3] - A renowned media house transformed its customer service operations using Salesforce's agentic AI solutions, resulting in reduced transactional inquiries and improved customer satisfaction scores [3] - The collaboration with Fluido, an Infosys company, has been pivotal in driving Salesforce-powered transformations for clients, including VTT, a leading research organization in Europe [4][5] Technology and Innovation - The Agentforce platform represents a new evolution in AI services, utilizing generative AI and agentic AI capabilities to enhance enterprise and customer operations [4] - Infosys emphasizes the integration of cutting-edge technology and a deep understanding of client needs to foster sustainable growth and productivity in an AI-driven environment [4][5] - The solutions are designed to ensure compliance with ethical and regulatory standards while supporting real-time decision-making and dynamic customer interactions [2][4]

Core Insights - Infosys and Sunrise have deepened their partnership to enhance IT transformation and AI adoption, focusing on operational efficiency, data security, and customer experience through technology deployment [1][6] - Infosys has developed a comprehensive suite of AI solutions, including Infosys Topaz for generative AI, Applied AI with AI Cloud, and various AI & Automation Services [2] - The acquisition of In Semi has bolstered Infosys' R&D capabilities in AI, 5G, and high-performance computing, while collaborations with industry leaders like NVIDIA, ServiceNow, and Intel further expand its AI capabilities [3][4][5] Partnership Developments - The partnership with Sunrise aims to leverage AI, analytics, and Infosys Topaz to enhance operations and deliver personalized digital experiences [1][6] - Infosys has integrated its Topaz with NVIDIA's NIMs to create solutions such as TOSCA Network Service Design and a generative AI-powered smart networking operating center [4] - Collaboration with ServiceNow has led to the development of a product that integrates the Now Platform with Infosys Enterprise Service Management Cafe, improving enterprise business services [5]

Core Insights - Infosys is expanding its strategic collaboration with Sunrise to enhance IT transformation and customer experience through advanced technology solutions [1][4]. Group 1: Collaboration and Objectives - The partnership aims to create a modern, agile, and secure technology foundation for Sunrise, focusing on IT transformation, data security, operational agility, and future AI integration [1][2]. - Infosys has been instrumental in streamlining Sunrise's IT landscape by consolidating multiple vendors and transitioning various applications, which is crucial for advancing Sunrise's IT transformation [2][3]. Group 2: Technological Advancements - Infosys will leverage its expertise in AI, analytics, and data, including its AI-first offering, Infosys Topaz, to help Sunrise become an AI-powered organization [3]. - The collaboration is expected to unlock new business value for Sunrise by enhancing operational speed, efficiency, and quality through data-driven insights and intelligent automation [3][4]. Group 3: Leadership Statements - Anna Maria Blengino, CIO of Sunrise, emphasized the importance of customer experience in their technology transition, highlighting the collaborative efforts between Sunrise and Infosys [4]. - Upendra Kohli from Infosys noted that the partnership reflects a shared vision for the future of telecommunications, focusing on innovation and data security [4].