Infosys ADRs Drop Nearly 6% Despite Strong Q4 Earnings Report
Infosys ADRs crash nearly 6% in pre-market after Q4 results
The Economic TimesImage: The Economic Times
Infosys' American Depository Receipts (ADRs) fell nearly 6% in pre-market trading after the company reported a 21% year-on-year increase in consolidated net profit to ₹8,501 crore for Q4. Despite surpassing revenue estimates, cautious guidance for future growth and macroeconomic uncertainties led to investor concerns.
- 01Infosys reported a 21% year-on-year increase in Q4 net profit, totaling ₹8,501 crore.
- 02Revenue from operations rose 13% year-on-year, reaching ₹46,402 crore.
- 03The company guided for revenue growth of 1.5% to 3.5% in constant currency for FY27.
- 04Infosys announced a final dividend of ₹25 per share for FY26.
- 05Concerns over near-term demand and extended conversion timelines impacted investor sentiment.
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Infosys, a major IT services company based in Bengaluru, India, saw its American Depository Receipts (ADRs) drop nearly 6% in pre-market trading following its Q4 earnings report. The company recorded a 21% year-on-year increase in consolidated net profit, amounting to ₹8,501 crore ($1.03 billion USD), while revenue from operations climbed 13% year-on-year to ₹46,402 crore ($5.04 billion USD). Notably, revenue exceeded analysts' expectations of ₹46,030 crore. Despite these strong results, Infosys provided a cautious outlook, projecting revenue growth of 1.5% to 3.5% in constant currency for FY27 and maintaining an operating margin guidance of 20%-22%. The company also highlighted a total of $14.9 billion in large deal wins for the year, with a focus on AI-led services as a growth driver. However, delays in discretionary spending and macroeconomic uncertainties have raised concerns about the near-term demand environment. Infosys declared a final dividend of ₹25 per share for FY26, with a payment date set for June 25.
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The decline in Infosys' ADRs could affect investor confidence and market sentiment towards the Indian IT sector, potentially impacting future investments.
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