Infosys ADRs crash nearly 6% in pre-market after Q4 results

Infosys' US-listed ADRs fell nearly 6% in pre-market on Thursday, even as the IT major reported a strong rise in profit in its March-quarter earnings. The Bengaluru-based company reported a 21% year-on-year jump in consolidated net profit to Rs 8,501 crore for Q4, while revenue from operations rose 13% YoY to Rs 46,402 crore. According to data compiled by LSEG, revenue surpassed analysts' average estimate of Rs 46,030 crore.

Infosys guided for revenue growth of 1.5% to 3.5% in constant currency for FY27. Operating margin guidance was maintained at 20%-22%.

The cautious outlook overshadowed an otherwise stable operational performance. In dollar terms, Q4 revenue stood at $5.04 billion, growing 4.1% YoY in constant currency, though it declined 1.3% sequentially, reflecting seasonal weakness and slower client decision-making.


Operating margin for the quarter came in at 21%, indicating stable profitability despite cost pressures. Earnings per share rose sharply, with basic EPS increasing 23.8% YoY to Rs 21.01.

For the full year, Infosys crossed the $20 billion revenue milestone, reporting $20.16 billion in FY26 revenue with 3.1% growth in constant currency. Net profit growth remained healthy, supported by operational efficiencies, while free cash flow stood strong at $3.7 billion, highlighting solid cash generation.

Deal momentum remained a key positive. The company reported total large deal wins of $14.9 billion during the year, with 55% being net new deals, indicating continued traction in large transformation programs.

Management highlighted growing traction in AI-led services as a structural driver. CEO Salil Parekh said the company's AI-first strategy and platforms such as Topaz Fabric are gaining traction among clients, particularly in large enterprise transformation deals.

However, the near-term demand environment remains uncertain. Delays in discretionary spending, especially in sectors like BFSI and retail, along with macro uncertainties, including geopolitical tensions and cautious IT budgets.

Also read: Infosys Q4 Results: Cons profit jumps 21% YoY to Rs 8,501 cr, revenue rises 13%; Rs 25/share dividend declared

The weak sequential revenue performance and soft guidance suggest that while deal pipelines remain strong, conversion timelines are getting extended. This has been a broader trend across the IT services sector, where companies are seeing stable demand but slower execution cycles.

Infosys also announced a final dividend of Rs 25 per share for FY26, with June 10 set as the record date and June 25 as the payment date.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)