Infosys lifts lower-end of revenue guidance after first quarter
By Josh White
Date: Wednesday 23 Jul 2025
(Sharecast News) - Infosys raised the lower end of its full-year revenue guidance on Wednesday, after delivering better-than-expected results for the first quarter, buoyed by robust demand in its financial services segment and strong deal wins driven by AI and digital transformation initiatives.
Revenue for the June quarter rose 7.5% year-on-year to $4.94bn, ahead of analyst expectations.
In constant currency terms, growth stood at 3.8% year-on-year and 2.6% quarter-on-quarter. Net profit rose 8.7% to $809m, boosted by cost controls and lower depreciation.
The company reported an operating margin of 20.8%, in line with its stated goal of maintaining margins within the 20% to 22% range for the financial year.
Free cash flow came in at $884m, representing 109.3% of net profit, although that marked a 19.2% decline from a year earlier.
Infosys won $3.8bn in large deals during the quarter, with 55% classified as net new business.
"Our large deal wins reflect our distinct competitive positioning and deep client relationships," said CEO Salil Parekh.
He highlighted growing demand for enterprise AI, particularly in financial services, even as macro uncertainty weighed on the manufacturing and logistics sectors.
The Bengaluru-based IT firm narrowed its full-year constant currency revenue growth forecast to between 1% and 3%, raising the lower bound from its previous flat-to-3% range.
It said the revision reflected improving stability in global markets and continued momentum in AI-led digital transformation.
"First-quarter performance is a clear reflection of our unwavering focus on multiple fronts," said CFO Jayesh Sanghrajka.
Revenue from the financial services sector, which accounts for about a third of Infosys' business, rose for the fifth straight quarter.
Notable recent wins included Bank of Sydney, AIB, and Metro Bank, where Infosys was delivering AI-driven digital transformation through its Topaz platform.
Infosys also expanded strategic partnerships during the quarter with clients such as E.ON, DNB Bank, Yorkshire Building Society and Spark New Zealand, further strengthening its position in key markets.
The company additionally launched AI agents for invoice processing in its cloud-based accounts payable solution, signalling deeper automation capabilities across its offerings.
At 0952 EDT (1452 BST), shares in Infosys were up 0.79% in New York, at $18.41.
Reporting by Josh White for Sharecast.com.
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