Infosys Limited — Important, 21-01-2025: Updates

Revenue grew 1.7% quarter-on-quarter and 6.1% year-on-year in constant currency during Q3 FY'25, with all verticals, particularly Europe and India, showing double-digit growth. Infosys secured large deals worth $2.5 billion, with strong free cash flow of $1.26 billion for the quarter. Headcount expanded by over 5,000, reaching 323,000 employees.

The Financial Services segment in the U.S. continued to thrive, and a revival in European Financial Services was noted. Retail and consumer products in the U.S. showed signs of improvement as discretionary spending pressures eased, although the automotive sector remained sluggish. The company is advancing its Generative AI initiatives, with 100 agents being developed for deployment across various sectors.

Due to the robust Q3 performance and positive outlook, Infosys revised its revenue growth guidance to 4.5%–5% for the financial year, maintaining an operating margin guidance of 20%–22%. Investors should watch closely for these growth trends and the impact of ongoing Generative AI developments.