Infosys Q2 results: ‘AI revenue has been outstanding,’ says CEO Salil Parekh as pricing pressure persists

Infosys CEO Salil Parekh said artificial intelligence (AI) is driving strong growth for the company, with the technology increasingly becoming part of large deals. However, pricing pressure and rising competition continue to pose challenges for the IT services major.

The comments came after Infosys announced its second-quarter results on Friday, October 23, 2026. At the press conference following the results, ET Now asked Parekh whether AI-led opportunities were growing fast enough to offset pricing pressure in the company's traditional services business.

“On the AI, I think the AI revenue has been outstanding as you pointed out, we have exceptional growth in that and that shows really how we have put together the AI approach within Infosys which is resonating with the client and the six dimensions of the hexagon in which each area that we are investing and scaling up and the foundation that we have built on the topaz fabric helps our clients.”

Parekh said Infosys was seeing several AI projects progressing well, including large-scale assignments. He added that AI was becoming an important part of the company's large deals.

“So there we see many examples of projects that are going extremely well these are scaled projects even in the large deals that we referenced almost all of them have some component one or two of them have full business transformation driven by AI as the fundamental element of the large deals. And that large deals have been quote exceptional as well which has helped us in a way to support the next financial year with the expected revenue growth support that the large mega deals we provide.”

However, Parekh acknowledged that AI was also contributing to pricing pressure, even as it created new growth opportunities.

“In terms of guidance, we continue to see what Jaish was sharing in terms of competitive intensity so there is the AI which is giving us the growth, there is AI which is also seeing compression and we continue to see that. There is competitive intensity because of that and we are extremely clear that we will take on the contracts it meets out economic guidelines and se with that in mind and all of the margin work that’s been done in terms of the initiative we have been able to keep our margin at this level and that is what reflected into our guidance where we see that competitive intensity and the changes that are going on.”

The Infosys CEO also pointed to global economic uncertainty, including ongoing wars, changes in interest rates and rising US 10-year Treasury yields, as factors affecting its clients.

“On the macro environment is also equally in a place where there is continuing different wars, there was some interest rate increases, there was also tenure yield which is now nearing to 5% and there is continuing some element of talent which creates a different type of environment for the global economy and therefore for the type of clients that we work with which is essentially global 2000.”

Parekh said Infosys remained confident about its AI business and large deals, while recognising that competition would continue to influence the market.

“So all of those put together we feel extremely good that the AI is going well that the large deals are good and then we also see the competitive intensity in the market.”

The company's Q2 financial performance provides the immediate context for Parekh's comments on growth, margins and the demand environment. Its AI business and large deal wins remain key areas of focus as Infosys navigates pricing pressure and uncertainty in the global economy.