Infosys Ltd. share price target

Lower passthrough led to higher than anticipated revenue decline in Q4FY25 The revenue growth performance (-3.5% CC QoQ) was below our estimates (1.6% QoQ CC), attributed to lower than anticipated passthroughs, and extended furloughs. The FY26 revenue growth guidance (0-3% CC YoY) translates to a revenue CQGR of ~0.4%-1.7% CC, which is well below the quarterly run-rate (~2.3% QoQ CC) of FY25, partly aided by mega wins awarded earlier. Despite having reported a large deal TCV of USD11.6b, the...

Infosys’ weak guidance with a widened range of 0-3% YoY CC for FY26 is due to weak exit growth rate of -1.1% YoY CC, heightened uncertainty due to global tariff wars and lack of mega deals reflected in muted TCV of USD 11.6bn, down 34% YoY in FY25.

Infosys reported a disappointing revenue performance in Q4, and missed implied growth guidance. Revenue declined 3.5% QoQ in cc terms, falling short of our expectations.

Both 4QFY25 and FY26 guidance were weaker than expected. The ~25% CYTD stock decline possibly prices some of that in

Reported revenues stood at $4,730 million, down 3.5% q-o-q/up 4.8% y-o-y in CC terms, missing our estimate of $4,842 million owing to lower third-party costs and revenue, and seasonality. Revenue in rupee terms stood at Rs 40,925 crore down 2% q-o-q/up 7.9% y-o-y.

Infosys (INFO) reported 4QFY25 revenue of USD4.7b, down 3.5% QoQ CC/up 4.8% YoY CC vs. our estimate of 1.0% QoQ CC decline. For full year, revenue stood at USD19.2b, up 4.2% YoY CC. EBIT margins stood at 21% vs. our estimates of 20.6%. EBIT declined 3.8% QoQ/up 12.5% YoY to INR85b (est. INR87b).

3QFY25 beats our estimates. European BFS and US Retail & CPG discretionary spends pick up. Higher than usual pass through impacts

Infosys (INFO) reported 3QFY25 revenue of USD4.9b, growth of 1.7% QoQ/6.1% YoY CC vs. our estimate of 1.0% QoQ CC. EBIT margins stood at 21.3% vs. our estimates of 20.8%. EBIT grew 3.0% QoQ/11.9% YoY to INR89b (est. INR86b). PAT came in at INR68b, up 4.6% QoQ/11.5% YoY, in line with our estimate of INR68b.

Infosys reported better than expected revenue growth in Q3. Revenue grew 1.7% QoQ CC, partly aided by increase in pass-through revenue and incremental contribution (20bps) from the in-tech acquisition. EBITM expanded by 20bps to 21.3%, in line with expectation.

Reported revenue stood at $4,939 million, up 1.7% q-o-q in constant currency (CC) terms, beating our estimate of $4,876 million. EBIT margins improved ~20 bps q-o-q to 21.3 %, beating our estimates. Company closed 17 large deals with TCV of $2.5 billion, up ~3% q-o-q/down 27% y-o-y.

Infosys led the revenue growth in constant currency (CC) for Tier-1 IT service companies in Q2FY25 driven by broad based participation across verticals, and a 2.3% y-o-y growth in CC in its key Financial services vertical.

In light of the improving macroeconomic outlook, stronger client engagement, and upgraded guidance, we upgrade our recommendation to a BUY

Broad-based growth with European auto the only weak spot. Discretionary spending still restricted to US financial services.