Infosys Ltd. share price target

Revenue was strong at $4,894 million, up 3.1% q-o-q in constant currency (CC) terms, nearly in line with our estimate of $4,897 million.

Infosys (INFO) reported 2QFY25 revenue of USD4.9b, growth of 3.1% QoQ/3.3% YoY CC vs. our estimate of 3.0% QoQ CC.

Infosys announced a strong start to FY25 with Q1FY25 results in line with our estimates.
Revenue in Q1FY25 grew to INR 393,150 Mn up 3.6% YoY (+3.7% QoQ) driven by growth in communication, Energy, Utilities, Resources & Services, and manufacturing segments; in line with our projections.

In light of improved medium-term demand from a majority of verticals along with some improvement in utilizations, we expect Infosys to report better growth in FY25. Hence, we recommend a BUY rating on the stock

Cost optimisation/vendor consolidation to be the prime growth driver for Infosys in FY25

Infosys announced relatively underwhelming Q4FY24 results, with revenue falling short of our expectations, while profits exceeded our forecasts largely on the back of substantial other income.
Revenue of INR 3,79,230 Mn (+1.3% YoY) was led by growth in the Communication (+4.2% YoY), Energy, Utilities, Resources & Services (+1.5% YoY), and Hi-Tech (+8.7% YoY) segments, although it fell short of our estimates by 3.2%.