Infosys Limited, a firm specializing in digital services and consulting, announced its third-quarter earnings, aligning with analyst predictions, while its revenue slightly surpassed forecasts. Despite these results, the company’s stock experienced a 1.75% decline post-announcement.
During the third quarter, Infosys reported earnings per share of $0.19, matching analyst estimates. The firm’s revenue reached $4.89 billion, slightly ahead of the $4.87 billion consensus expectation, marking a 3.3% year-over-year revenue growth in constant currency terms.
Salil Parekh, CEO and Managing Director of Infosys, remarked on the performance, noting a 3.1% quarter-on-quarter growth in constant currency during the second quarter, with financial services exhibiting strong momentum.
The company’s operating margin for the quarter was recorded at 21.1%, and free cash flow totaled $839 million, reflecting a 25.2% year-over-year increase. Infosys also reported a total contract value of large deal wins at $2.4 billion, with 41% comprising net new business.
In terms of future expectations, Infosys provided revenue guidance for the fiscal year 2025, anticipating growth of 3.75%-4.50% in constant currency, and sustained its operating margin guidance at 20%-22%.
Jayesh Sanghrajka, CFO, emphasized the company’s focus on margin performance, commenting that the 21.1% operating margin for the quarter was achieved through value-based pricing and efficient utilization despite higher payouts to employees.
The slight decrease in Infosys’ stock price following the earnings release might indicate that investors had higher expectations or are exercising caution regarding the company’s future prospects.