Core Insights - Infosys Ltd risks losing over a third of its $400 million annual revenue from Daimler due to the German automaker seeking a new vendor for software and equipment following execution delays [1][2] - The loss primarily concerns the contract for IT services, including the provision of iPhone cases, laptops, and Microsoft 365 subscriptions for Daimler's IT operations [2] - Infosys ended FY25 with $19.28 billion in revenue and now needs to backfill $150 million, or 0.7% of its business, amid macroeconomic uncertainties and client spending pressures [3] Contractual Details - Infosys signed a $3.2 billion, eight-year IT transformation deal with Daimler in December 2020, covering six business divisions [4] - The contract includes services such as network services, cybersecurity, and data centers, but the workplace solutions segment is pending renewal [5][6] - Daimler owes Infosys nearly $47 million in dues since 2021, highlighting ongoing issues with execution and billing [6] Competitive Landscape - Another Indian IT services provider is eyeing a portion of Infosys' contract with Daimler and has already made a bid [7] - The Daimler contract is one of the largest for Infosys, which has secured multiple mega deals since CEO Salil Parekh took over in January 2018 [8] Financial Performance - Revenue from Infosys Automotive and Mobility GmbH, created for the Daimler project, declined by 8.5% to $418 million in FY25, marking the first decline after two years of growth [12][13] - The overall revenue for Infosys grew 42% to $19.28 billion in FY25, with the Daimler project significantly contributing to this growth [10] Industry Trends - The trend of clients terminating contracts with IT service providers mid-way through deals is becoming more common, as seen with other companies like Transamerica and HCL Technologies [14][15]