Infosys Reports Strong First-Quarter Earnings, Records Highest Free Cash Flow Ever – Infosys (NYSE:INFY)

Infosys Sp. z o. o. (NYSE: INFY) reported first-quarter revenue up 2.5% in constant currency year-over-year to $4.71 billion, beating analyst estimates of $4.65 billion. The stock rose after the print.

Revenue in constant currency rose 3.6% quarter over quarter. Earnings per share of $0.18 matched Street analyst estimates and was higher than $0.17 a year ago.

Infosys reported that the number of large deal wins was the highest ever at 34, with TCV of $4.1 billion, of which 57.6% was net. Operating margin improved by 30 bps to 21.1%.

Infosys had $1.97 billion in cash and equivalents at the end of June. It generated free cash flow of $1.09 billion, up 56.5% year-on-year on net profit conversion of 143.2%.

Jayesh Sanghrajka, CFO, said: “We delivered our highest ever FCF profit of US$1.1 billion and ROE increased to 33.6% on the back of higher payouts to investors.”

Fiscal Year 2025 Revenue Outlook: Infosys expects revenue to grow by 3.0%-4.0% (previously 1.0%-3.0%) in constant currency, compared with consensus of $19.04 billion. The company reiterated operating margin guidance of 20%-22%.

Reduction: INFY shares rose 4.92% to $21.54 in the pre-market during the last session on Thursday.

Photo: Shutterstock/IgorGolovniov