Infosys Q2 2025 profit surges 13%; raises hopes for 2026 salary hike
BENGALURU, INDIA — Infosys‘ strong second-quarter performance has lifted employee morale, as the Indian IT services major kicks off its annual performance review cycle amid growing expectations of a long-awaited salary hike in 2026.
The company on Thursday reported a 13.2% year-on-year jump in net profit to ₹7,364 crore (US$887 million) for the quarter ended September 30, 2025, signaling renewed stability in its business momentum after a period of cautious cost management and delayed pay raises.
Infosys Q2 earnings signal sharp recovery
According to a report from The Hindu, Infosys’ total revenue for the quarter grew 8.6% year-on-year to ₹44,490 crore (US$5.36 billion), backed by US$3.1 billion in large deal wins, of which 67% came from new clients. The company’s operating profit rose 8.1% to ₹9,353 crore (US$1.13 billion), maintaining an operating margin of 20–22%.
Chief Executive Officer (CEO) and Managing Director Salil Parekh said the performance reflected Infosys’ resilience and client relevance in a challenging macroeconomic environment.
“We have now delivered two consecutive quarters of strong growth, demonstrating our unique market positioning and client relevance,” Parekh said during a media briefing in Bengaluru.
Chief Financial Officer Jayesh Sanghrajka added that the company delivered a robust, all-round performance in Q2, with resilient margins, strong cash generation, and 13.1% year-on-year EPS growth in rupee terms.
Infosys also announced an ₹18,000 crore (US$2.17 billion) share buyback and an interim dividend of ₹23 (US$0.28) per share, up 9.5% from last fiscal year, underscoring its healthy balance sheet and shareholder confidence.
Employee appraisal cycle spurs pay raise expectations
Coinciding with the earnings report, Infosys initiated its annual performance appraisals, prompting employees to update their goals and development plans by October 17, according to a report from The Economic Times.
Despite the routine nature of the exercise, many perceive this year’s review as a significant milestone. “This is a routine exercise, but we hope the company will give us a raise this time, unlike last year,” an employee said.
Infosys’ appraisal outcomes will determine pay adjustments for 2026, following a series of delayed hikes in previous years.
In its latest communication, HR encouraged staff to “reflect on your key efforts, outcomes, challenges, achievements, and set future-ready goals.”
The Bengaluru-based company, which employs about 3.32 lakh people, also added 8,203 new hires in Q2 and reaffirmed plans to recruit 15,000–20,000 freshers in FY26.
Balancing growth and workforce strategy
Infosys’ strong quarter and renewed focus on employee development come at a time when the global outsourcing sector is emphasizing cost optimization, automation, and AI-driven delivery.
With Infosys investing in nearshore centers and local talent in North America, Europe, and Latin America, its ability to balance profitability with workforce retention could set a benchmark for peers.
As global IT clients tighten budgets while ramping up digital and AI spending, Infosys’ alignment of strong financial performance with internal talent development reflects a strategic shift toward sustainable, skill-based competitiveness. This move could influence broader trends in the outsourcing landscape.
The company ranked #11 in the OA500 2025, an objective index of the world’s top 500 outsourcing companies.
