INFY Earnings Prediction
The chart below shows how INFY performed 10 days before and after its earnings report, based on data from the past quarters. Typically, INFY sees a +2.22% change in stock price 10 days leading up to the earnings, and a -0.51% change 10 days following the report. On the earnings day itself, the stock moves by -2.01%. This data can give you a slight idea of what to expect for the next quarter's release.
INFY Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
4.95B
6.03%
1.06%
Gross Margin
30.49%
2.01%
-1.17%
Operating Margin
21.35%
3.94%
0.05%
Net Margin
16.33%
3.68%
2.70%
EPS
0.19
5.56%
0.00%
No Data Available
INFY Earnings Analysis
Infosys Ltd Corporation (INFY.N) Earnings Conference Call
Positive
Consistent Revenue Growth: Revenue growth of 1.7% quarter-on-quarter and 6.1% year-on-year in constant currency terms, with all verticals and most geographies showing growth.
Large Deal Performance: Large deals totaled $2.5 billion for the quarter, with 63% being net new, reflecting a 57% increase in net new deal TCV.
Operating Margin Improvement: Operating margin improved to 21.3%, an increase of 20 basis points sequentially and 80 basis points year-on-year, demonstrating effective cost management.
Record Free Cash Flow Growth: Free cash flow reached an all-time high of $1.26 billion for the quarter, marking a 90% increase year-on-year and 51% increase quarter-on-quarter.
Employee Growth and Expansion: Headcount grew by over 5,000 sequentially to over 323,000 employees, indicating strong demand and operational expansion.
Negative
Decline in Unbilled Revenues: Net unbilled revenues declined by $323 million sequentially, marking the lowest level in the last 12 quarters, indicating potential future revenue challenges.
Client Revenue Decline: Top five client revenues decreased by over 6% quarter-on-quarter, reflecting significant furlough impacts and a lack of growth year-on-year, raising concerns about client dependency.
Operating Margin Guidance Stability: Operating margin guidance remains unchanged at 20% to 22%, suggesting limited improvement potential despite current performance metrics.
Revised Revenue Growth Guidance: The revenue growth guidance for FY '25 was revised down to 4.5% to 5%, indicating a slowdown in expected growth compared to previous forecasts.
Rising Third-Party Costs: Third-party costs increased significantly, impacting both revenue and margins, with expectations that this trend may continue into the next quarter.
