Infosys ADRs rise 2% in pre-market session as FY26 guidance raised

Infosys Ltd saw a 2 per cent jump its American Depository Receipts (ADRs) after India's second-largest IT firm upped its FY26 revenue growth guidance to 3-3.5 per cent in constant currency (CC) terms while maintaining its operating margin of 20-22 per cent. The IT firm had earlier guided for 2-3 per cent YoY revenue growth in CC terms. While The IT major's profit was hit by provisions for new Labour Codes, its deal wins at $4.8 billion was largely in line with Street estimates of $4.5-5 billion.

Over its previous day's closing price of $17.52, Infosys ADRs were trading at $17.90 in pre-market session, up 2.17 per cent. Infosys ADRs eventually settled 10.45 per cent higher at $19.35 on NYSE. Stock market would be closed on Thursday on account of MCGM Election day.

The Salil Parekh-led company reported a 2.23 per cent year-on-year (YoY) fall in its consolidated net profit attributable to owners for the December quarter. Net profit came at Rs 6,654 crore compared with Rs 6,806 crore in the year-ago period. Sales for the quarter rose 8.89 per cent to Rs 45,479 crore for the quarter compared with Rs 41,764 crore in the corresponding quarter last year. This was in line with Street estimates.

“Infosys delivered a strong Q3 performance demonstrating how our differentiated value propositions in enterprise AI, through Infosys Topaz, are consistently driving higher market share. Clients increasingly view Infosys as their AI partner with demonstrated expertise, innovation capabilities and strong delivery credentials. This has helped them unlock business potential and enhanced value realization”, said Salil Parekh, CEO and MD.

“Central to this journey is our commitment to reskill, transform and empower our dedicated human resource pool to drive success in an AI augmented world” he added.

Infosys said its dollar revenue for the quarter came in at $5,099 million, up 0.6 per cent QoQ in constant currency terms . Adjusted1 operating margin increased 0.2 per cent sequentially to 21.2 per cent.

CFO Jayesh Sanghrajka said Infosys Q3 performance was broad-based with 0.6 per cent sequential revenue growth, 0.2 per cent adjusted operating margin expansion, large deal wins at $4.8 billion and robust adjusted free cash generation at $965 million in a seasonally weak quarter” said .

“In line with our capital allocation policy, we successfully completed the largest ever buyback of Rs 18,000 crore and paid out interim dividend to shareholders”, he added.