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Infosys INFY, a leader in next-generation digital services and consulting worldwide, delivered a strong third-quarter fiscal 2025 performance with earnings of 19 cents per share, matching the Zacks Consensus Estimate. The bottom line improved 5.6% from the year-ago quarter’s earnings of 18 cents.
In the trailing four quarters, INFY’s earnings beat the Zacks Consensus Estimate once and matched thrice, with an average surprise of 8.8%.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Infosys’ fiscal third-quarter revenues increased 5.9% to $4.94 billion from the year-ago quarter’s revenues of $4.66 billion. The top line surpassed the Zacks Consensus Estimate of $4.88 billion. Key strategic initiatives, market positioning, remarkable growth across segments and unique digital offerings were the company's main drivers of the top line.
Buoyed by strong third-quarter performance, Infosys raised its guidance for fiscal 2025. Impressive quarterly results, along with upbeat fiscal 2025 guidance, are likely to give a fresh boost to INFY’s share price and gain investors' confidence.
Over the past year, shares of INFY have gained 8.8% compared with the Computers - IT Services industry’s appreciation of 10.8%.
Infosys Limited Price, Consensus and EPS Surprise
Infosys Limited price-consensus-eps-surprise-chart | Infosys Limited Quote
Infosys’ Q3 Details
Revenues across North America recorded year-over-year growth of 4.9% on a reported basis. Revenues across India and Europe registered growth of 38.3% and 11.9%, respectively, while the Rest of the World decreased 11.7% on a reported basis. On a constant currency (cc) basis, North America grew 4.8%. On a cc basis, India and Europe registered growth of 40.1% and 12.2%, respectively, while the Rest of the World decreased 11.1%.
Segment-wise, revenues from Manufacturing increased 10% to $765.5 million, Financial Services revenues grew 5.8% to $1.37 billion and Energy, Utilities, Resources & Services sales climbed 8.6% to $666.8 million. Communication rose 4.4% to $553.2 million, and Hi-Tech division sales increased 8.5% to $390.2 million.
In the third quarter of fiscal 2025, the company’s Retail segment revenues increased 0.1% to $681.6 million. Life Sciences revenues increased 6.5% to $375.4 million. The Others business unit’s revenues decreased 1.3% to $133.4 million.
Infosys added 101 clients in the fiscal third quarter. It signed 17 large deals of contract values worth $2.5 billion. The company reported that its clients, worth more than $100 million, now add up to 41, up from 40 in the year-ago quarter.
Gross profits increased 7.6% year over year to approximately $1.5 billion. The gross margin expanded 50 basis points (bps) on a year-over-year basis to 30.3%. The company’s operating income increased 10.1% year over year to $1.05 billion. Meanwhile, the operating margin expanded 80 bps to 21.3% year over year.