Infosys ADR falls nearly 4% on NYSE following Q2 results

Infosys Ltd

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26 Aug, 2025 12:21

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Infosys ADRs dropped nearly 4 percent on the NYSE on October 17 after the company's Q2FY25 results fell short of market expectations. At 9.40 am Eastern Daylight Time, Infosys ADRs were trading 3.5 percent lower at $22 apiece.

Infosys reported a consolidated net profit of Rs 6,506 crore for Q2FY25, a 2.2 percent sequential increase, but below Moneycontrol's estimate of Rs 6,769 crore. Revenue from operations rose 4.2 percent QoQ to Rs 40,986 crore, missing Moneycontrol's forecast of Rs 40,857 crore.

Infosys, however, raised its FY25 revenue guidance to 3.75-4.5 percent in constant currency terms, up from the 3-4 percent band given by the company in the previous quarter. The company's operating margin guidance for FY25 was at 20-22 percent.

Also Read | Infosys Q2 net profit rises to Rs 6,506 crore, misses estimates, guidance raised further; dividend declared

Operating margins for the September quarter remained flat at 21.1 percent, aligning closely with Moneycontrol's estimate of 21.2 percent. CFO Jayesh Sanghrajka attributed the stable margin to value-based pricing and increased utilisation, despite higher employee payouts.

"We had strong growth of 3.1 percent quarter-on-quarter in constant current in Q2. The growth was broad
based with good momentum in financial services," said Salil Parekh, CEO and MD of Infosys. "This stems from our strength in industry expertise, market leading capabilities in cloud with Cobalt and generative AI with Topaz, resulting in growing client preference to partner with us."

Infosys's total contract value (TCV) stood at $2.4 billion in Q2FY25, 41 percent of which came from net new business.

The company also declared an interim dividend of Rs 21 per share, with October 29 as the record date and November 8 as the payout date.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.