Infosys issues underwhelming outlook, misses Q1 sales estimates; stock down

Published 17/04/2025, 12:32
© Reuters.

Investing.com -- Indian IT giant Infosys (NSE:INFY) delivered a cautious revenue outlook for fiscal 2026 on Thursday, as continued weakness in North America highlighted reduced client spending.

The Indian IT services giant said it expects revenue to rise between 0% and 3% in the current fiscal year, falling short of analysts’ projections, which had anticipated growth in the 2% to 4% range. The company had also started the previous year with a conservative forecast, which it later revised upward.

The company’s U.S.-listed shares declined 3.5% in premarket trading.  

For the first quarter, Infosys reported revenue of 409.25 billion rupees ($4.79 billion), an increase of 7.9% from the same period last year but below the 420.73 billion rupees expected by analysts, according to LSEG data.

Operating margin for the quarter stood at 21%—an jump of 0.9 percentage points year-over-year but a slight dip of 0.3 points sequentially.

"We have built a resilient organisation with sharp focus on client-centricity and responsiveness to the market, thanks to the trust of our clients and dedication of our employees. Our performance for the year has been robust in terms of revenues, expansion in operating margins and highest ever free cash generation”, said Salil Parekh, CEO and managing director of Infosys. 

Infosys has guided for an operating margin of 20% to 22% for the current year. 

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