Infosys (NYSE:INFY) Releases Earnings Results, Misses Expectations By $0.01 EPS

Infosys (NYSE:INFY – Get Free Report) announced its quarterly earnings data on Thursday. The technology company reported $0.20 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.21 by ($0.01), Zacks reports. Infosys had a net margin of 16.44% and a return on equity of 32.64%.

Here are the key takeaways from Infosys’ conference call:

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• Infosys announced that Ashiss Dash will succeed Salil Parekh as CEO, with a transition period over the next several months. Management emphasized Dash’s long tenure, internal experience, and continuity with the company’s culture and strategy.
• Q1 constant-currency revenue growth was 2.4% year over year and 1% sequentially, but results were held back by softer volumes, weaker pricing, and a one-time client termination. The company also revised FY2027 revenue guidance down to 1.5%-3% from prior expectations.
• Infosys highlighted continued strength in AI services, which reached 8.2% of revenue and has been growing at a double-digit sequential rate. Management said AI work is broadening across the six areas of its strategy and is becoming a key long-term growth engine.
• The company posted strong profitability and cash generation, with operating margin at 21.1% and free cash flow of $955 million. Infosys also reiterated margin guidance of 20%-22% for the year.
• Large deal momentum remained solid, with $3.6 billion of large deal wins and 61% net new in the quarter. Management pointed to vendor consolidation opportunities and healthy AI-led transformation demand as support for the pipeline.

Infosys Price Performance

Shares of Infosys stock traded down $0.48 during trading hours on Thursday, hitting $10.45. The company had a trading volume of 7,848,948 shares, compared to its average volume of 18,426,668. The company’s 50-day moving average is $11.66 and its two-hundred day moving average is $13.78. The company has a market cap of $42.27 billion, a P/E ratio of 13.06, a price-to-earnings-growth ratio of 1.46 and a beta of 0.90. Infosys has a twelve month low of $10.30 and a twelve month high of $30.00.

Analyst Upgrades and Downgrades

A number of research firms have commented on INFY. Weiss Ratings reaffirmed a “hold (c-)” rating on shares of Infosys in a research report on Monday, June 8th. JPMorgan Chase & Co. lowered their price target on Infosys from $16.80 to $12.70 and set an “overweight” rating for the company in a research report on Wednesday, June 24th. TD Cowen cut their price objective on Infosys from $13.00 to $10.00 and set a “hold” rating on the stock in a report on Thursday, July 9th. BMO Capital Markets dropped their target price on Infosys from $20.00 to $15.00 and set a “market perform” rating for the company in a research report on Friday, April 24th. Finally, Stifel Nicolaus set a $13.00 price target on shares of Infosys and gave the stock a “hold” rating in a research report on Thursday, July 16th. One research analyst has rated the stock with a Buy rating, seven have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus price target of $12.50.

Check Out Our Latest Report on Infosys

Institutional Investors Weigh In On Infosys

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. NewEdge Advisors LLC grew its position in shares of Infosys by 79.9% during the first quarter. NewEdge Advisors LLC now owns 54,978 shares of the technology company’s stock worth $1,003,000 after acquiring an additional 24,426 shares during the last quarter. Dynamic Technology Lab Private Ltd bought a new stake in Infosys in the 1st quarter valued at about $239,000. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its position in Infosys by 6.4% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 63,155 shares of the technology company’s stock valued at $1,153,000 after purchasing an additional 3,804 shares during the last quarter. Hedge funds and other institutional investors own 16.20% of the company’s stock.

About Infosys

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Infosys Ltd. is a digital services and consulting company, which engages in the provision of end-to-end business solutions. It operates through the following segments: Financial Services, Retail, Communication, Energy, Utilities, Resources, and Services, Manufacturing, Hi-Tech, Life Sciences, and All Other. The company was founded by Dinesh Krishnan Swamy, Senapathy Gopalakrishnan, Narayana Ramarao Nagavara Murthy, Raghavan N. S., Ashok Arora, Nandan M. Nilekani, and S. D. Shibulal on July 2, 1981 and is headquartered in Bangalore, India.

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