Highest Dividend in Over 10 Years: Large-Cap IT Stock Reports USD 5.2 Billion Large-Deal TCV, AI Revenue Contribution Reaches Double Digits

Infosys is seeking to offset slower discretionary technology spending in traditional services with artificial intelligence-led transformation work, cost-takeout projects and large enterprise contracts. The IT services company reported consolidated revenue of Rs 49,244 crore for the quarter ended September 30, 2026, up 10.7 per cent YoY, while constant-currency revenue growth was a more modest 1.5 per cent.

Net profit attributable to equity holders rose 6.2 per cent YoY to Rs 7,823 crore, while basic earnings per share increased 8.7 per cent to Rs 19.32. Operating profit increased to Rs 10,330 crore from Rs 9,353 crore a year earlier, with the operating margin steady at 21.0 per cent despite higher selling, marketing and administrative costs.

The quarter’s principal operating highlight was a large-deal total contract value of USD 5.2 billion, of which 62 per cent was net new business. This included a mega deal worth more than USD 2 billion. Such contracts support medium-term revenue visibility, although their contribution to reported revenue depends on implementation and ramp-up schedules. Management said artificial intelligence revenue accounted for 10.5 per cent of quarterly revenue and grew 29 per cent QoQ.

Performance across client industries remained uneven. Financial Services was the largest segment, with revenue of Rs 13,774 crore, while Life Sciences recorded the fastest YoY growth at 32.5 per cent in constant currency. Energy, Utilities, Resources and Services also expanded 7.3 per cent. Retail revenue declined 7.7 per cent and Hi-Tech fell 17.3 per cent in constant currency, reflecting pressure on discretionary spending.

Infosys revised its FY27 constant-currency revenue growth guidance to 1-2 per cent from its earlier range of 1.5-3 per cent, while retaining its operating-margin guidance at 20-22 per cent. Free cash flow was Rs 8,898 crore, representing 113.5 per cent of net profit, although it declined 8.1 per cent YoY.

Infosys Dividend

The board declared an interim Dividend of Rs 26 per share, 13 per cent higher than a year earlier. The company has announced its highest dividend in over 10 years, declaring an interim dividend of Rs 26 per equity share, its highest interim dividend since 2014. This marks an increase from Rs 23 per share declared in October 2025 and continues the trend of rising interim dividend payouts. The company has fixed November 3, 2026, as the record date.

Infosys Share Price 

As of 10:21 am on October 29, 2026, Infosys shares were trading at Rs 1,129.90, up 0.6 per cent from the previous close of Rs 1,123.15. The stock remains 23.8 per cent lower over one year, compared with a 9.01 per cent decline in the BSE 500, indicating an underperformance of about 14.8 percentage points. At the current price, the company’s market capitalisation stood at about Rs 4,55,807 crore.

What This Means for Investors

The quarter reinforces that Infosys is gaining traction in artificial intelligence services and large transformation mandates, even as the underlying demand environment remains selective. The USD 5.2 billion deal intake and 29 per cent QoQ rise in artificial intelligence revenue provide support for future growth, particularly because a majority of the deal value is net new. The stable 21.0 per cent operating margin also shows that cost controls are helping absorb pricing pressure and continued capability investments.

The revised 1-2 per cent FY27 constant-currency growth outlook is the key restraint. Weakness in Retail and Hi-Tech, softer North American revenue and productivity-led pressure on legacy services could delay a broader growth recovery. The investment case, therefore, depends on conversion of major deals into revenue and on artificial intelligence work expanding faster than deflation in traditional services. At 14.82 times trailing 12-month earnings, the valuation reflects a business with strong cash generation and a debt-free balance sheet, but near-term earnings visibility remains closely tied to demand recovery and pricing discipline.

Disclaimer: The article is for informational purposes only and not investment advice.