Infosys Q1 results beats estimates, raises revenue guidance to 3-4%

“We are looking to hire 15,000-20,000 freshers this year depending on how we see the growth,” Jayesh Sanghrajka, CFO of Infosys, said without divulging the number of freshers on boarded in Q1.

India’s second-largest IT company Infosys revised its revenue guidance for the fiscal 2025 to 3-4 percent from 1-3 percent, above analyst estimates.

Analysts had anticipated Infosys to maintain its FY25 revenue growth guidance at 1-3 percent in constant currency (CC) terms.

The company had revised its annual revenue growth guidance five times in the last six quarters. The latest was in the March quarter when it slashed guidance to 1-3 percent.

The company cited three reasons for its confidence in raising both the upper and lower ends of its revenue guidance. First, a strong June quarter with increased volumes from the financial sector and favorable outcomes in the U.S. Second, exceptionally strong large deal wins. Lastly, the timely closure of the In-tech acquisition.

Infosys beat Street estimates on both the topline and bottomline front. Additionally, the financial services vertical was the only major sector to grow. Moreover, Infosys' large deal wins were highest-ever in Q1 with a total contract value (TCV) of $4.1 billion, with 57.6 percent of it being net new.

"We had a very strong Q1, and with that performance, which focused specifically on volumes, financial services in the U.S., that gave us more confidence for the year," Chief Executive Officer Salil Parekh said at a press conference after declaring Q1 results.

In April, India’s second-largest IT services company announced the acquisition of in-tech, an engineering R&D services provider with a focus on the German automotive industry. The management said this deal was closed on July 17, and performance would reflect in the books of account from Q2.

In January, Infosys narrowed revenue growth guidance for the full year to 1.5-2 percent for the full year. The move came after it had previously slashed revenue guidance in September to 1-2.5 percent from 1-3.5 percent.

Before that, the company had reduced its revenue guidance for the fiscal to 1-3.5 percent from 4-7 percent, amid an increasingly challenging demand environment.

Meanwhile, Infosys retained its operating margin at 20-22 percent for the financial year.

Also read: Infosys to hire 15,000-20,000 freshers in FY25