Infosys shares fall as fourth-quarter revenue misses views

  • Investing.com
  • Stock Market News
Infosys shares fall as fourth-quarter revenue misses views
Credit: © Reuters.

Infosys Limited (NS: INFY ) shares plunged nearly 6% in early U.S. trading Thursday after the company missed analysts' fourth-quarter revenue estimates and issued downbeat guidance.

The India-based IT giant reported revenue growth of 1.3% to NR379.23 billion ($4.54 billion), which was below the consensus estimate of INR383.81 billion ($4.61 billion).

The company's consolidated profit rose 30% to 79.69 billion rupees.

For fiscal year 2025, Infosys expects revenue growth between 1% and 3% in constant currency and an operating margin of 20-22%.

The entire India IT sector has been seeing pressure as clients pull back on non-essential projects due to inflationary pressures.

Despite the stock's sell-off, executives at the company reassured investors that it is well-positioned in Generative AI and that its free cash flow is strong.

“We delivered the highest ever large deal value in the financial year 2024. This reflects the strong trust clients have in us. Our capabilities in Generative AI continue to expand. We are working on client programs leveraging large language models with impact across software engineering, process optimization, and customer support," said Salil Parekh, CEO and MD.

Free cash flow of $848 million in Q4 was highest in the last 11 quarters driven by our relentless focus to improve working capital cycle, CFO Jayesh Sanghrajka highlighted.

Drop an image here or Supported formats: *.jpg, *.png, *.gif up to 5mb

Error: File type not supported

Drop an image here or

100

Related Articles