Investing.com -- Infosys Limited, a digital services and consulting firm, reported third-quarter earnings that met analyst expectations while revenue slightly exceeded forecasts. The company's stock slipped 1.75% following the announcement.
For the third quarter, Infosys (NS:INFY) reported earnings per share of $0.19, in line with analyst estimates. Revenue came in at $4.89 billion, surpassing the consensus expectation of $4.87 billion. The company achieved a year-over-year revenue growth of 3.3% in constant currency terms.
Infosys CEO and MD Salil Parekh commented on the results, stating, "We had strong growth of 3.1% quarter-on-quarter in constant currency in Q2. The growth was broad-based with good momentum in financial services."
The company's operating margin for the quarter stood at 21.1%, while free cash flow reached $839 million, representing a 25.2% YoY increase. Infosys also reported total contract value (TCV) of large deal wins at $2.4 billion, with 41% being net new business.
Looking ahead, Infosys provided revenue guidance for fiscal year 2025 expecting 3.75%-4.50% growth in constant currency, while maintaining its operating margin guidance at 20%-22%.
CFO Jayesh Sanghrajka highlighted the company's focus on margin performance, stating, "Operating margins for the quarter was at 21.1%, driven by continued benefits from value-based pricing and utilization despite higher employee payouts."
The slight dip in Infosys' stock price following the earnings release suggests investors may have had higher expectations or are cautious about the company's future outlook.