Infosys ADRs fell by nearly 6% overnight in US trading despite the company reporting better-than-expected Q3FY25 results, reflecting resilience amidst a mixed demand environment. The IT major showcased strong performance across key metrics and revised its revenue growth guidance upward, signaling improved client spending.
Key Highlights:
- Infosys raised its FY25 revenue growth guidance to 4.5-5% in constant currency, up from the earlier 3.75-4.5%, marking the third upward revision this fiscal year.
- Net profit for Q3FY25 grew 11.4% YoY to ₹6,806 crore, beating estimates, with a 4.6% sequential growth.
- Revenue rose 7.6% YoY to ₹41,764 crore, ahead of market expectations, and grew 1.9% QoQ.
- Operating margin guidance was maintained at 20-22% for FY25.
The company highlighted improving discretionary spending in the US and Europe, particularly in sectors such as financial services and retail. “We see positive trends in key markets, which reinforce our growth momentum,” said Salil Parekh, CEO and MD of Infosys.
Infosys’ revenue guidance revision and continued client spending underscore the company’s strong positioning. However, the overnight decline in ADRs suggests mixed sentiment among international investors, likely influenced by global market conditions and broader industry trends.
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