FY25 revenue guidance revised to 3.75%-4.50%; Margin guidance retained at 20%-22% BENGALURU, India, Oct. 17, 2024 /PRNewswire/ -- Infosys (NSE: INFY) (BSE: INFY) (NYSE: INFY), a global leader in next-generation digital services and consulting, delivered broad based growth performance with $4,894 million in Q2 revenues, sequential growth of 3.1% and year on year growth of 3.3% in constant currency. Operating margin for Q2 was at 21.1%. Free cash flow for Q2 was at $839 million, growing 25.2% year on year. TC ...

Strategic Collaboration and AI Innovation - Infosys announces a strategic collaboration with zooplus to establish a state-of-the-art Global Capability Center (GCC) in Hyderabad, India, aimed at driving AI-led innovation and enhancing service capability and scalability [1] - The collaboration will leverage Infosys Topaz, an AI-first offering using generative AI technologies, to drive AI innovation, transform e-commerce capabilities, and enhance operational efficiency for zooplus [2] - Infosys was selected for its unique AI-first strategy and commitment to improving productivity while achieving cost efficiencies, which will play a pivotal role in transforming zooplus' customer experience and technology capabilities [3] Leadership Perspectives - Geoffroy Lefebvre, CEO of zooplus, emphasizes the strategic decision to collaborate with Infosys due to their AI-first strategies and expertise in delivering AI-powered solutions, aiming to unlock operational efficiencies and enhance customer experience [4] - Karmesh Vaswani, Executive Vice President at Infosys, highlights the company's commitment to driving digital transformation at scale for clients, leveraging Infosys Topaz to empower zooplus and position them at the forefront of digital commerce and marketing [4] Company Overviews - zooplus SE is the leading online pet platform in Europe, offering a broad product range, exclusive brands, and innovative services to cater to pet parents' needs across 30 European countries [5] - Infosys is a global leader in next-generation digital services and consulting, with over 300,000 employees enabling digital transformation for clients in more than 56 countries, powered by cloud and AI technologies [6]

Core Viewpoint - Infosys (INFY) has demonstrated strong stock performance, gaining 26.9% year-to-date, significantly outperforming the Zacks Computers - IT Services industry and the broader market indices [1][2]. Financial Performance - The company's stock performance reflects investor confidence in its financial health, innovative product launches, and a steady influx of customer contracts [2]. - In the first quarter of fiscal 2025, Infosys reported a revenue growth of 2.1% year-over-year, with a consensus estimate for fiscal 2025 revenues projected at $19.3 billion, indicating a year-over-year growth of 3.7% [8]. AI and Innovation - Infosys has been expanding its presence in the AI market through partnerships and acquisitions, including the acquisition of InSemi, which bolstered its R&D capabilities in AI, 5G, and high-performance computing [5]. - The company has collaborated with industry leaders such as NVIDIA, ServiceNow, and Intel to enhance its AI offerings and integrate advanced technologies into its solutions [6][7]. Client Engagement - Infosys has secured numerous clients this year, with many adopting its AI solutions, including notable companies like Sally Beauty Holdings, Posti, Metro Bank, LIC India, and First Abu Dhabi Bank [4]. Challenges - The company faces macroeconomic challenges, including inflationary pressures and high interest rates, which have led to expense reductions among enterprise customers and slower decision-making processes [9]. - Infosys is also susceptible to currency volatility between the Indian Rupee and the U.S. dollar, as a significant portion of its revenue is generated from the U.S. market [10]. Investment Outlook - Despite the challenges, Infosys's consistent contract flow and expanding AI capabilities suggest solid top-line growth potential. However, the stock's valuation is considered stretched, prompting a cautious investment stance [11].

Core Insights - Infosys is expanding its collaboration with Microsoft to accelerate global adoption of generative AI and Microsoft Azure, aiming to enhance customer experiences and drive transformative outcomes for joint customers [1][2][3] Collaboration Details - The collaboration began with Infosys as an early adopter of GitHub Copilot, leading to significant efficiencies in code modernization, with over 18,000 developers generating more than 7 million lines of code [2] - Infosys has been selected as a strategic supplier for Cloud and AI workloads, integrating Microsoft's generative AI offerings into its Solution IP portfolio to enhance cost-efficiency, scalability, and agility for clients [3] Sector-Specific Solutions - Financial Services: Combining Infosys' Finacle expertise with Microsoft's capabilities to improve efficiency in financial institutions [4] - Healthcare: Infosys Helix, built on Microsoft Azure, utilizes AI/ML to optimize patient outcomes and reduce costs [4] - Supply Chain: Enhanced agility and optimized processes through TradeEdge and Azure OpenAI service [4] - Telecommunications: Improved connectivity and customer experiences via Microsoft's generative AI and Infosys Live Operations platforms [4] - Customer Service: Infosys Cortex integrates Microsoft GenAI and Copilot for personalized customer engagement [4] Market Availability - Many solutions will be accessible on Azure Marketplace, allowing customers to leverage their Microsoft Azure Consumption Commitment (MACC) [5] Responsible AI Initiatives - Both companies are focusing on sharing best practices for Responsible AI, with Infosys contributing to ethical AI guidelines through its Responsible AI Office [6] Leadership Statements - Anand Swaminathan from Infosys emphasized the collaboration's focus on delivering value through a customer-centric approach across key sectors [7] - Nicole Dezen from Microsoft highlighted the transformative potential of the expanded collaboration in enhancing business operations and driving innovation [8]

Core Insights - Infosys and Old National Bank have expanded their four-year collaboration to enhance operations transformation and process digitization through automation and Generative AI [1][3] - Since 2020, Infosys has utilized a self-funding model to modernize Old National's digital landscape, resulting in improved stability, resiliency, and client experience [2] - Old National Bank, with approximately $53 billion in assets and $30 billion in assets under management, ranks among the top 30 banking companies in the U.S. [4] Company Overview - Infosys is a global leader in digital services and consulting, employing over 300,000 people and operating in more than 56 countries [5] - Old National Bank is the sixth largest commercial bank in the Midwest, focusing on long-term partnerships and community support [4] - Infosys emphasizes an AI-first approach and continuous improvement through digital skills transfer and innovation [5]

Infosys (INFY) shares have gained 25.7% in the past six months, outperforming the Zacks Computers - IT Services industry's return of 4.5%. INFY stock has also outperformed the Zacks Computer and Technology Sector and the S&P 500 index in the past six months. The Zacks Computer and Technology sector and the S&P 500 index have returned 10.3% and 10.1%, respectively, in the past six months. This outperformance reflects investors' confidence in INFY's financials, innovative product launches and steady flow of c ...

Infosys Topaz will deliver accelerated business value from AI and future-proof the business BENGALURU, India and DENTON, Texas, Sept. 26, 2024 /PRNewswire/ -- Infosys (NSE: INFY), (BSE: INFY), (NYSE: INFY), a global leader in next-generation digital services and consulting, today announced its strategic collaboration with Sally Beauty Holdings, Inc. (SBH), an American international specialty beauty retailer and distributor of professional beauty supplies. Driving enterprise-scale IT transformation, Infosys ...

BENGALURU, India, Sept. 25, 2024 /PRNewswire/ -- Infosys (NSE: INFY) (BSE: INFY) (NYSE: INFY), a global leader in next-generation digital services and consulting, today announced a strategic collaboration with Polestar (NASDAQ: PSNY), the Swedish electric performance car brand. This engagement aims to create a base for Polestar's development of in-car infotainment, Software and Electrical / Electronics (SW&EE) engineering, user experience (UX), and cloud-powered digital services. Infosys will also leverage ...

Core Insights - Infosys (INFY) shares have increased by 23.4% year to date, outperforming the Zacks Computer and Technology Sector and S&P 500 index returns of 22.4% and 19.7%, respectively, as well as the Zacks Computers - IT Services industry's return of 7.2% [1] Client Expansion and AI Initiatives - Infosys has recently expanded its client base by partnering with Posti, a leading European delivery and logistics company, to enhance customer experience and operational efficiency using AI [2] - This new seven-year project builds on a previous relationship where Infosys improved Posti's IT infrastructure, now leveraging Infosys Topaz and Cobalt for AI-based solutions in a cloud environment [3] - In addition to Posti, Infosys has gained several clients interested in its AI capabilities, including Metro Bank, LIC India, TDC Net, Roland-Garros, Telstra, and First Abu Dhabi Bank [4] Investment in AI Capabilities - Infosys is significantly investing in AI, both organically and inorganically, launching the Aster platform in early 2024, which utilizes Infosys Topaz and advanced technologies for immersive experiences [5] - The inorganic growth strategy includes acquisitions like In Semi, enhancing R&D capabilities in AI, 5G, hyperconnectivity, and high-performance computing, along with collaborations with industry leaders such as NVIDIA, ServiceNow, and Intel [6][7][8] Macroeconomic Challenges - Infosys faces potential near-term challenges due to softening IT spending amid macroeconomic headwinds, with rising inflation leading to expense reductions among enterprise customers [9] - The revenue growth rate has slowed to a low-to-mid single-digit percentage range from double-digit rates until fiscal 2023, with the Zacks Consensus Estimate for 2025 revenues at $19.3 billion, indicating a year-over-year growth of 3.7% [10] Valuation and Market Position - Despite a steady flow of contracts and expanding AI expertise indicating solid top-line growth potential, Infosys' stock is considered to have a stretched valuation, reflected by a Zacks Value Score of F, suggesting a wait for a better entry point [12]

To help Posti enhance customer experience and operational efficiency with an AI-first strategy leveraging Infosys Topaz BENGALURU, India, Sept. 19, 2024 /PRNewswire/ -- Infosys (NSE: INFY) (BSE: INFY) (NYSE: INFY), a global leader in next-generation digital services and consulting, today announced it is extending its strategic collaboration with Posti, the leading delivery and logistics services provider in Finland, Sweden, and the Baltics. As part of the engagement, Infosys will help Posti enhance customer ...