Infosys (INFY) Q3 24/25 earnings summary

Executive summary

• Revenue for Q3 FY25 grew 1.7% quarter-on-quarter and 7.6% year-on-year in constant currency, with all verticals and most geographies showing growth.

• Net profit for Q3 was ₹6,822 crore, up 11.6% year-over-year; nine-month net profit was ₹19,712 crore, up 7.9% year-over-year.

• Large deal total contract value (TCV) reached $2.5 billion, with 63% net new, and free cash flow hit an all-time high of $1.26 billion.

• Headcount increased by over 5,000 sequentially, now exceeding 323,000 employees globally.

• Financial services in the U.S. and Europe showed strong performance, with retail and consumer products in the U.S. improving as discretionary pressures eased.

Financial highlights

• Operating margin for Q3 was 21.3%, up 0.8 percentage points year-on-year.

• EPS increased 11.4% year-on-year to INR 16.43.

• Free cash flow for the quarter was $1.26 billion (₹10,647 crore), up 91.9% year-on-year; nine-month FCF was $3.2 billion.

• DSO was at 74 days; including unbilled net of unearned, DSO was down by six days at 86.

• Net unbilled revenues declined by $323 million sequentially to the lowest level in 12 quarters.

Outlook and guidance

• FY25 revenue growth guidance revised to 4.5%-5% in constant currency.

• Operating margin guidance remains at 20%-22%.

• Q4 expected to be impacted by seasonality, lower working days, and reversal of Q3 third-party revenue benefits.