Infosys delivers strong Q3 growth, revises FY25 guidance
BENGALURU, INDIA — Infosys, a global leader in digital services and consulting, reported a solid performance in its Q3 FY25 results, showcasing resilience amid evolving market dynamics.
The company achieved revenues of $4.9 billion, reflecting a sequential growth of 1.7% and a year-on-year increase of 6.1% in constant currency (CC).
Revenue and margins continue to climb
Infosys posted an operating margin of 21.3% for the quarter, up by 0.8% year-on-year and 0.2% sequentially. Free cash flow (FCF) hit a record $1,263 million, a remarkable 90% growth year-on-year.
Salil Parekh, CEO and MD of Infosys, attributed the company’s success to its focus on differentiated digital offerings and enterprise AI capabilities.
“Our strong revenue growth sequentially in a seasonally weak quarter and broad-based year-on-year growth…is a clear reflection of the success of our differentiated digital offerings,” Parekh said.
Large deals drive growth
Infosys secured $2.5 billion in large deal total contract value (TCV), with 63% of these being net new deals—a sequential growth of 57%. This momentum reflects the company’s ability to attract new clients while expanding existing relationships.
Additionally, Infosys increased its workforce by 5,591 employees during the quarter, marking the second consecutive quarter of headcount growth.
FY25 guidance revised
Looking ahead, Infosys revised its FY25 revenue growth guidance to 4.5%-5.0% in constant currency, citing confidence in its robust deal pipeline and strategic initiatives. The operating margin target remains at 20%-22%.
CFO Jayesh Sanghrajka highlighted the company’s structured approach to margin expansion and cash flow management: “Our sharp focus on cash flow is reflected in free cash conversion to net profits of 157% in Q3.”
Key financial highlights
For Q3 ended December 31, 2024:
- Revenue growth: 6.1% YoY in CC terms; 1.7% QoQ
- Operating margin: 21.3%, up by 0.8% YoY
- Basic earnings per share (EPS): $0.19, up by 9.6% YoY
- Free cash flow: $1,263 million, up by 89.9% YoY
For nine months ended December 31, 2024:
- Revenue growth: 3.9% YoY in CC terms
- Operating margin: 21.2%, up by 0.3% YoY
- Basic EPS: $0.57, up by 6.1% YoY
- Free cash flow: $3,196 million, up by 57.1% YoY
Infosys continues to strengthen its position as a leader in digital transformation services globally through innovation and strategic focus on generative AI and other advanced technologies.
