Infosys(US:INFY) ZACKSยท2024-10-18 16:00Core Insights - Infosys reported second-quarter fiscal 2025 earnings of 19 cents per share, matching the Zacks Consensus Estimate, with a year-over-year improvement of 5.6% from 18 cents [1] - Revenues for the second quarter increased by 3.7% to $4.894 billion, slightly surpassing the Zacks Consensus Estimate of $4.89 billion, driven by large deals and stable demand across various segments [1] Revenue Performance - North America revenues declined by 2.6% year-over-year, while revenues from India, Europe, and the Rest of the World increased by 14.7%, 16.7%, and 4.8%, respectively [2] - On a constant currency basis, North America saw a decline of 2.7%, while India, Europe, and the Rest of the World experienced growth of 16%, 15.5%, and 3.8% [2] - Segment-wise revenue growth included Manufacturing at 13.5% ($768 million), Financial Services at 2.8% ($1.33 billion), and Energy, Utilities, Resources & Services at 10.7% ($660 million) [2] Client Acquisition and Contracts - Infosys added 86 clients in the fiscal second quarter and signed multiple large deals totaling $2.4 billion [3] - The number of clients generating over $100 million in revenue increased to 41, up from 39 in the previous year [3] Financial Metrics - Gross profits rose by 3.2% year-over-year to $1.49 billion, with a gross margin contraction of 20 basis points to 30.5% [4] - Operating income increased by 3.3% year-over-year to $1.03 billion, while the operating margin contracted by 10 basis points to 21.1% [4] - Consolidated cash and investments at the end of the quarter were $4.63 billion, up from $4.31 billion in the previous quarter, with free cash flow generated at $839 million [4] Outlook - Following strong fiscal second-quarter performance, Infosys raised its revenue guidance for fiscal 2025 to a growth range of 3.75-4.50% on a constant currency basis, up from the previous guidance of 3-4% [5] - The company expects fiscal 2025 operating margin to be in the range of 20-22% [5]