The company's fiscal first-quarter revenues improved 2.1% to $4.71 billion from the year-ago quarter's revenues of $4.62 billion. The top line also surpassed the Zacks Consensus Estimate of $4.67 billion. In terms of constant currency (cc), the metric improved by 2.5%. Infosys Limited (INFY) shares soared 8.4% on Thursday after the India-based IT services provider reported strong first-quarter fiscal 2025 results. The company's upbeat sales guidance for fiscal 2025 also boosted investors' confidence in the ...

Best of all, though, was growth in the all-important category of free cash flow. Infosys generated $1.1 billion in cash profits in Q1, an increase of 57% over one year ago -- and 43% better than reported net income. And the near-term news looks pretty propitious as well. Turning to guidance, Infosys guided for stronger growth in sales, up 3% or even 4% this year, with operating margins continuing to range from 20% to 22% -- so roughly equal to Q1. This implies that earnings growth this year should be respec ...

Key Takeaways INFOSYS LTD, 1D, NSE Infosys stock price chart YTD -- TradingView The improved outlook comes as companies increase spending to invest in AI. Gartner forecasts global IT spending to jump in 2024, driven by AI. Gartner projected that IT services spending will grow to $1.61 trillion, a 7.1% jump from the spending recorded the year prior. William Blair analysts said that it is still in the "very early stages of an AI revolution" indicating that investment spending is expected to continue into 2025 ...

Indian IT giant Infosys raised its annual revenue guidance Thursday after reporting a 7.1 percent on-year rise in net profit for the June quarter, signaling a gradual revival in client spending. Infosys bumped constant-currency revenue guidance for the current financial year to 3-4 percent, up from an earlier forecast of 1-3 percent. Parekh added that Infosys was seeing "early signs of improvement" for its financial services arm in the United States. Infosys, which has over 300,000 employees, upset markets ...

Financial Data and Key Metrics - Revenue for Q1 grew 3.6% sequentially and 2.5% year-on-year in constant currency terms, reaching $4.7 billion [23][38] - Operating margin improved by 1% sequentially to 21.1%, driven by a 1.4% improvement in gross margins [38] - Free cash flow reached a record high of $1.1 billion, a 29% sequential increase [31] - Employee attrition rate remained stable at 12.7% [26] - Return on equity increased sequentially to 33.6% [31] Business Line Performance - Financial services returned to positive sequential growth after six quarters, with 7.9% growth in constant currency terms [15][23] - Manufacturing saw broad-based growth across geographies and sub-verticals like industrial, automotive, and aerospace [40] - Hi-Tech vertical remains soft, with no clear trigger for improvement [2][52] - Retail sector continues to face uncertainties, with clients focusing on cost takeouts to fund business transformation [41] Market Performance - In the US, financial services showed early signs of recovery, particularly in mortgages, capital markets, and card payments [39][46] - Europe saw mixed performance, with strong traction in Nordic countries and Germany, but challenges in other regions [172] - Large deal TCV reached $4.1 billion, with 58% being net new [15][33] Company Strategy and Industry Competition - The company is positioning itself as a digital-first, cloud-first, and AI-first brand, with strong differentiation in generative AI and cost efficiency [9][10] - The acquisition of in-tech is expected to accelerate growth in the engineering segment [35] - Project Maximus continues to drive margin improvement through value-based selling, lean automation, and efficient pyramid structures [13][43] Management Commentary on Operating Environment and Future Outlook - Management highlighted early signs of recovery in US financial services but remains cautious about the broader discretionary spending environment [10][34] - The company revised its revenue growth guidance for the full financial year to 3% to 4% in constant currency, while maintaining operating margin guidance at 20% to 22% [11][52] - Generative AI is seen as a key area of focus, with strong client engagement and early project wins [26][27] Other Important Information - The company closed 34 large deals during the quarter, with significant contributions from retail, communication, and financial services [33] - Utilization rate increased to 85.3%, and unbilled revenues dropped to $1.7 billion [17] - The company launched Aster, a marketing suite of AI-amplified solutions, to enhance marketing efficiency and performance [28] Q&A Session Summary Question: What is driving the improvement in financial services? - The improvement in financial services is driven by early signs of recovery in areas like mortgages, capital markets, and card payments in the US [46] Question: How is the in-tech acquisition impacting margins? - The in-tech acquisition is relatively small and is not expected to have a material impact on margins, but it comes with healthy margins and potential synergies [84] Question: What are the key levers for margin improvement going forward? - Key levers include value-based selling, lean automation, and efficient pyramid structures, with potential headwinds from wage hikes and large deal ramp-ups [43][112] Question: How is generative AI impacting delivery productivity? - Generative AI is improving productivity in areas like software development and process optimization, with benefits also seen in customer service [116] Question: What is the outlook for retail and Hi-Tech verticals? - The retail sector remains under pressure, with clients focusing on cost takeouts, while the Hi-Tech vertical continues to face challenges with no clear trigger for improvement [41][52] Question: How is Europe performing? - Europe shows mixed performance, with strong traction in Nordic countries and Germany, but challenges in other regions due to high interest rates and geopolitical conflicts [172]

Revenue guidance at 3%-4% and operating margin guidance at 20%-22% Highest Free Cash Flow at $1.1 billion; Record number of large deals at 34 with $4.1 billion TCV BENGALURU, India, July 18, 2024 /PRNewswire/ -- Infosys (NSE: INFY) (BSE: INFY) (NYSE: INFY), a global leader in next-generation digital services and consulting, delivered $4,714 million in Q1 revenues with a sequential growth of 3.6% and year on year growth of 2.5% in constant currency. Operating margin was at 21.1%, a sequential expansion of 1% ...

Revenue guidance at 3%-4% and operating margin guidance at 20%-22% Highest Free Cash Flow at $1.1 billion; Record number of large deals at 34 with $4.1 billion TCV BENGALURU, India, July 18, 2024 /PRNewswire/ -- Infosys (NSE: INFY) (BSE: INFY) (NYSE: INFY), a global leader in next-generation digital services and consulting, delivered $4,714 million in Q1 revenues with a sequential growth of 3.6% and year on year growth of 2.5% in constant currency. Operating margin was at 21.1%, a sequential expansion of 1% ...

Infosys' (INFY) North-American subsidiary, Infosys Public Services, has received a contract for modernizing the Delaware Department of Labor's existing systems. Infosys Public Services has been given the task of developing a platform for paid family medical leave program. This solution provides improved customer relationship management, analytics expertise and reduced long-term ownership costs. The LaborForce is one of those solutions that Infosys Public Services uses to expand its market share in the publi ...

About Infosys Infosys is a global leader in next-generation digital services and consulting. Over 335,000 of our people work to amplify human potential and create the next opportunity for people, businesses and communities. With over four decades of experience in managing the systems and workings of global enterprises, we expertly steer clients, in more than 50 countries, as they navigate their digital transformation powered by the cloud. We enable them with an AI-powered core, empower the business with agi ...

The move to cloud-based ERP will modernize Sector Alarm's financial and business operations, providing streamlined processes, enhanced business insights and seamless integration with its Customer Relationship Management platform. Infosys' digital transformation capabilities, combined with the robust Microsoft platform, will enable Sector Alarm to optimize its finances, improve customer retention and acquisition, and enhance the overall customer and employee experience. The implementation will be phased acro ...