Infosys (INFY) Gains 8% on In-Line Q1 Earnings, Solid Sales View

Core Insights - Infosys Limited reported a 2.1% increase in fiscal first-quarter revenues to $4.71 billion, surpassing the Zacks Consensus Estimate of $4.67 billion [1] - The company raised its revenue guidance for full fiscal 2025 to a growth of 3-4% on a constant currency basis, up from the previous guidance of 1-3% [8] Financial Performance - Gross profits increased by 3.5% year over year to $1.46 billion, with a gross margin expansion of 40 basis points to 30.9% [6] - Operating income rose 3.4% year over year to $994 million, and the operating margin improved by 30 basis points to 21.1% [16] Client and Deal Activity - Infosys added 87 clients in the fiscal first quarter and signed multiple large deals totaling $4.1 billion [5] - The number of clients generating over $100 million in revenue increased to 40, up from 38 in the previous year [5] Segment Performance - Revenue growth was observed in several segments: Manufacturing up 6.4% to $693 million, Life Sciences up 2.7% to $344 million, and Energy, Utilities, Resources & Services up 5.2% to $627 million [4] - The Retail segment saw a decline of 3% to $651 million, while Financial Services fell 0.1% to $1.3 billion [14] Geographic Revenue Trends - North America experienced a year-over-year revenue decline of 1.2%, while revenues from India, Europe, and the Rest of the World increased by 18.4%, 8.6%, and 0.6%, respectively [13]