Q2 call: AI revenue 10.5% of revenue, $5.2 bn large deals, FY growth guidance 1% to 2%
Transcript of the media conference call held after the board meeting of October 23, 2026 is out.
By ScoutQuest · · 2 min read
- Revenue growth (YoY, CC)
- 1.5% YoY in constant currency
- Large deals
- $5.2 bn in the quarter, including a net-new mega deal of over $2 bn
- FY Guidance
- revenue growth of 1% to 2% YoY and operating margin of 20% to 22% for the year
What this update is
This is the transcript of the media conference call held after the board meeting of October 23, 2026, where management spoke about the second quarter results.
Growth in the quarter
- Revenue growth for Q2 was 1.5% YoY in constant currency terms.
- AI revenue was 10.5% of revenue and grew 29% sequentially.
- Operating margin was stable at 21%.
- Large deals for the quarter were $5.2 bn, which includes two mega deals.
- One mega deal was net new, worth over $2 bn with a large international company, and management expects it to contribute over 1% revenue growth in the coming financial year.
- The second mega deal was a renewal.
Guidance given by management
- Revenue growth guidance for the year is 1% to 2% YoY in constant currency terms, based on Q2 performance and a revised outlook for the rest of the year.
- Operating margin guidance is retained at 20% to 22% for the year.
How the business is positioned
- Management described AI as a standout, with the company working as an ecosystem integrator with frontier model companies, both open-weight and closed models.
- Investments in Topaz Fabric are described as helping clients move between models.
- The AI approach is organised under the company's Hexagon framework of focus areas, including agents, legacy modernisation, process AI and data AI.
- Management said the partner ecosystem is gaining momentum and that the large deal pipeline is healthy.
Industry trends mentioned
- Good strength in Financial Services, Energy Utilities and Manufacturing.
- Some weakness in Retail and Hi-Tech.
What a retail investor can take away
- The transcript sets out management's own reading of the quarter: AI-linked revenue is scaling, order wins were large, and the operating margin was held steady.
- The guidance ranges define the boundary management has set for the year's revenue growth and profitability.
- The commentary on sectors gives a sense of where demand is holding up and where it is softer.
This is an information update of the call transcript; the figures above are as stated by management during the call.
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More numbers
- Q2 revenue growth YoY (constant currency)1.5%
- AI revenue as share of Q2 revenue10.5%
- AI revenue sequential growth29%
- Large deals for the quarter$5.2 bn
- Net-new mega deal sizeover $2 bn
- Operating margin21%
- Revenue growth guidance for the year (constant currency)1% to 2%
- Operating margin guidance for the year20% to 22%
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