Infosys ADRs plunge 7.5% in pre-market after company trims annual revenue growth forecast
A Ksheerasagar
The American Depositary Receipts (ADRs) of Infosys crashed 7.5% in Friday’s trade on October 23, falling to $12.25 in pre-market trading after the Bengaluru-based technology firm trimmed its annual revenue growth forecast, despite marginally beating revenue estimates for the September quarter.
Infosys has revised its revenue growth forecast for the fiscal year ending March 2027 to 1%-2%, from its earlier estimate of 1.5%-3%. Most analysts had expected the company to lower the upper end of its guidance to 2.5%, bringing the range to 1.5%-2.5%.
The weaker outlook has heightened concerns that companies continue to curb spending on major information technology projects.
India’s second-largest IT services company, along with its peers, has struggled with a demand slowdown in recent years, driven by global uncertainty and exacerbated by the Middle East conflict and intensifying competition from companies such as Anthropic and OpenAI offer new ways to automate labor-intensive tasks that were previously outsourced to IT services providers.
Indian IT giants, however, maintain that their businesses remain agile and resilient. TCS’ earnings earlier this month pointed to a gradual improvement in contract flow, with the company’s annualised AI revenue reaching $3.1 billion.
Infosys Chairman Nandan Nilekani just last week shrugged off worries about AI eliminating jobs and said the technology will instead galvanize small businesses and fuel demand for new skills.
Infosys reported a 6.2% year-on-year increase in consolidated net profit to ₹7,823 crore for the September quarter, in results announced after market hours on Friday. The company had posted a net profit of ₹7,364 crore in the corresponding quarter last year.
Consolidated revenue from operations rose 10.2% year-on-year to ₹49,244 crore in the reported quarter, from ₹44,490 crore a year earlier.
AI-related revenue accounted for 10.5% of the company’s revenue and grew 29% quarter-on-quarter.
Infosys CEO and Managing Director Salil Parekh said the company secured large deals worth $5.2 billion during the quarter, including a mega deal valued at more than $2 billion.
A Ksheerasagar
Ksheera Sagar has been working as a Market Research Analyst at LiveMint for the past four years, covering stocks, commodities, and broader financial markets. In this role, he closely tracks daily market movements, corporate earnings, sector trends, and macroeconomic developments. <br><br> He has over a decade of experience in the financial services industry and has previously worked with multiple organisations, including global investment bank J.P. Morgan, bringing strong research experience into the newsroom. <br><br> During his career, he has gained extensive exposure to equity research, market analysis, and financial data interpretation, strengthening his expertise across asset classes and market cycles. <br><br> He is known for his data-driven analysis and crisp, listicle-style market stories that break down complex financial developments across key markets for a wide audience. His strong research skills enable him to write detailed and insightful stories on stocks and sectors, focusing on the underlying factors driving market movements. <br><br> His work combines quantitative insights with clear storytelling, presenting financial developments in a clear and structured manner. Moreover, he enjoys writing multibagger and listicle-style copies. Outside of work, Ksheera enjoys playing the piano and exploring new places. He has a keen interest in travel, music, and continuously learning about global markets and economic trends.
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