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what it is
Infosys runs the tech projects, software builds, and back-office work large companies do not want to run themselves.
how it gets paid
Last year Infosys made $19.3B in revenue. Financial Services was the main engine at $5.4B, or 28% of sales.
why it's growing
Revenue grew 3.9% last year as large enterprises keep spending on digital transformation—cloud, AI tooling, security, and better customer and employee experiences.
what just happened
Last reported quarter came in at $0.18 per ADR share versus a ~$0.22 estimate—a clean reminder that stable businesses can still disappoint (same basis as the earnings block below).
At a glance
A balance sheet — strong enough to weather a downturn
100/100 earnings predictability — you can trust these numbers
24.2x trailing p/e — priced about right
3.9% dividend yield — cash in your pocket every quarter
39.5% return on capital — every dollar works hard here
xvary composite: 73/100 — average
What they do
Infosys runs the tech projects, software builds, and back-office work large companies do not want to run themselves.
Scale is the moat. Infosys has 323,578 employees and a 30.0% operating margin, which means it sells labor-heavy tech work and still keeps more profit than most software services peers. Switching costs → changing vendors is painful → so what: your bank or retailer does not rip out a core IT partner lightly when revenue is $19.3B and predictability is 100.
How they make money
$19.3B
annual revenue · their business grew +3.9% last year
Financial Services
$5.4B
Manufacturing
$2.9B
Retail, CPG and Logistics
$2.8B
Communication
$2.6B
Hi-Tech
$1.6B
Other Verticals
$4.0B
The products that matter
enterprise IT services
technology services and consulting
$19.3B company revenue · +3.9% growth
This is the core business the snapshot data actually shows: a $19.3B services platform that still produced a 30.0% operating margin. That margin is the story.
margin engine
banking software
banking industry software products
segment breakout not disclosed here
The business description says Infosys sells software into banking, but this page does not break out revenue or profit for it. That matters because you cannot tell how much of the $19.3B comes from scalable software versus lower-multiple services work.
data gap
Key numbers
30.0%
operating margin
Operating margin → profit after running the business → so what: Infosys turns a people-heavy services model into unusually fat profits.
39.5%
return on capital
Return on capital → profit earned on money put to work → so what: every dollar reinvested has historically worked hard.
24.2x
trailing p/e
P/E → price versus last year's profit → so what: you are paying up for quality even as projected sales growth drops to 3.0%.
3.9%
dividend yield
Dividend yield → cash paid to you each year → so what: the stock pays you while you wait, which matters when upside looks capped.
Financial health
A
strength
- balance sheet grade A — very strong financial position
- risk rank 2 — safer than 80% of stocks
- price stability 80 / 100
- net profit margin 25.7% — keeps 26 cents of every dollar in revenue
- return on equity 40% — $0.40 profit for every $1 investors have put in
A with balance sheet grade and risk rank standing out. your money faces less risk here than at most public companies.
Total return vs. market
You invested $10,000 in INFY 3 years ago → it's now worth $10,840.
The index would have given you $14,770.
source: institutional data · total return
What just happened
missed estimates
Last earnings came in at $0.18 per share versus a $0.22 estimate, a clean reminder that stable businesses can still disappoint.
Consensus shows an ~18% EPS miss on ADR figures ($0.18 vs ~$0.22) even as Q3 revenue was about $5.1B and beat expectations—top line and bottom line can diverge when costs and headcount run hot. The ~30% profitability line in this snapshot is operating margin, not gross margin; do not trust a feed that labels ~30.5% as “gross” next to a 30% operating margin without checking the filing.
$5.1B
revenue (q)
$0.18
eps (adr, q)
~30.0%
operating margin (fy)
the number that mattered
The key number was the 18.18% EPS miss, because a stock trading at 24.2x earnings does not get to miss quietly.
-
infosys limited’s stock price is up roughly 10% in value following solid december-period results (fiscal year ends march 31, 2026).the global it, cloud, and ai solutions provider posted revenues of $5.1 billion for the third quarter, exceeding consensus expectations. the performance was underpinned by rising enterprise demand for ai-related solutions, as well as strong large deal activity in previous periods.
-
moreover, the investment community seemed to applaud management’s upbeat near-term operating outlook.note, however, that the adrs remain ranked to mirror the broader market averages in the year ahead (timeliness: 3).
-
our profit forecasts for fiscal 2025 and 2026 are being tempered slightly.infosys reported earnings of $0.18 per adr for the december period, with the figure slipping a penny vs. prior year, and falling short of our $0.22 mark. higher cost of sales and sg&a expenses, largely due to increased headcount, likely weighed on the result. while reduced operating costs and stock buybacks ought to support improved profits in the near term, we are scaling back our current fiscal year estimate by a nickel, to $0.80 per adr.
-
likewise, our fiscal 2026 bottom-line call is being lowered $0.10, to $0.95 per adr.management’s push into the ai arena, coupled with accelerating customer demand trends, augurs well for long-term business prospects. indeed, infosys is well positioned to support overall enterprise adoption of ai-related solutions via its topaz platform.
-
global business spending on digital transformations, which includes the implementation of cloud and ai to boost operating efficiencies, network security, and customer and employee experiences, is expected to surge in the years ahead.
source: company earnings report, 2026
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What could go wrong
The risk picture here starts with legal overhang and slow-growth execution in Indian IT services. Infosys can keep printing cash and still disappoint you if growth stays sluggish or litigation keeps crowding out the operating story.
med
form 6-k legal updates keep the filing risk alive
The filing update points to ongoing legal complexity rather than a fully cleared issue set. That matters because INFY is priced for steadiness.
stated exposure on the page: could put $2.9B–$4.8B of revenue at risk
med
the cognizant trade-secret dispute is an overhang, not background noise
Litigation does not need to break the business to hurt the stock. It only needs to keep uncertainty elevated while growth is already under scrutiny.
stated exposure on the page: could put $2.9B–$4.8B of revenue at risk
med
raised guidance still only points to 3–3.5% growth
That is better than worse, but it is still slow. A 24.2x earnings multiple does not leave much room for repeated low-single-digit growth without a debate over valuation.
stated exposure on the page: could put $1.9B–$2.9B of revenue at risk
med
sector-wide revenue deflation fears can drag INFY with the group
The Indian IT selloff shows the stock is not insulated from broader pricing worries. Even strong operators get repriced when investors fear the sector's contracts are getting less attractive.
stated exposure on the page: could put $1.9B–$2.9B of revenue at risk
four identified risks. combined revenue exposure on the current page: ~$3.9B. The bigger issue is less the precise dollar count and more the mix — low growth plus legal noise is how a quality compounder turns into a value trap.
source: institutional data · regulatory filings · risk analysis
Pay attention to
trend
whether growth can get meaningfully above 3–3.5%
The company raised guidance, but the new range is still modest. If revenue stays near the current 3.9% pace, the premium for consistency starts doing all the work.
metric
margin discipline near 30.0% operating margin
Margins are why the stock still gets respect. If they slip while growth stays slow, the thesis gets a lot less elegant.
risk
any real change in the legal and trade-secret headlines
A filing update is one thing. A worsening dispute is another. You do not need to obsess over every headline, but you do need to know whether the overhang is fading or spreading.
calendar
the next earnings report
With 100/100 earnings predictability, surprises are not the usual story here. What matters is whether management can show better demand without giving back the margin profile.
Analyst rankings
earnings predictability
100 / 100
Management gives reliable guidance and the numbers usually land close to plan. In human-speak: analysts trust this company to say what it means.
risk rank
2
That puts INFY in the safer part of the market. You are taking business-model and valuation risk here more than balance-sheet risk.
price stability
80 / 100
The stock tends to move with more restraint than a typical tech name. Not a bunker stock, but not a chaos stock either.
source: institutional data
Institutional activity
institutions have been net selling for 2 consecutive quarters — 208 buyers vs. 244 sellers in 3q2025. total institutional holdings: 0.6B shares. net selling for 2 quarters.
source: institutional data
Price targets
3-5 year target range
$15
$26
$19
current price
$21
target midpoint · +13% from current · 3-5yr high: $35 (+90% · 19% ann'l return)
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