Infosys Q4 Earnings Surpass Estimates, Revenues Fall Short

Infosys INFY ended fiscal 2025 on a mixed note, with its fourth-quarter earnings surpassing the Zacks Consensus Estimate while revenues fell short of the same. For the quarter, the company reported earnings of 20 cents per share, beating the consensus mark by a penny. However, the bottom line registered a year-over-year decline of 15.3%.In the trailing four quarters, INFY’s earnings beat the Zacks Consensus Estimate once and matched thrice, with an average surprise of 1.3%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)Infosys’ fiscal fourth-quarter revenues increased 3.6% year over year to $4.73 billion from the year-ago quarter’s revenues of $4.56 billion. Key strategic initiatives, market positioning, remarkable growth across segments and unique digital offerings were the company's main drivers of the top line. However, the top line fell short of the Zacks Consensus Estimate of $4.90 billion.Infosys Limited Price, Consensus and EPS Surprise Infosys Limited price-consensus-eps-surprise-chart | Infosys Limited QuoteInfosys’ Q4 DetailsRevenues across North America and Rest of the World recorded a year-over-year decline of 0.8% and 4.5%, respectively, on a reported basis. Revenues across India and Europe registered growth of 39% and 12.9%, respectively, on a reported basis. On a constant currency (cc) basis, North America and Rest of the World declined 0.4% and 2.2%, respectively. On a cc basis, India and Europe registered growth of 43.7% and 15%, respectively.Segment-wise, revenues from Manufacturing increased 12.1% year over year to $752.1 million, Financial Services revenues grew 12.1% year over year to $1.34 billion and Energy, Utilities, Resources & Services sales inched up 0.6% year over year to $614.9 million. Communication sales declined 1.3% year over year to $553.4 million, and Hi-Tech division sales decreased 1.6% year over year to $392.6 million.In the fourth quarter of fiscal 2025, the company’s Retail segment revenues decreased 3.8% year over year to $629.1 million. Life Sciences revenues declined 3.9% year over year to $321.6 million. The Others business unit’s revenues decreased 4.6% year over year to $123 million.Infosys added 91 clients in the fiscal fourth quarter. The company reported that its clients, worth more than $100 million, now add up to 39, down from 40 in the year-ago quarter and 41 in the previous quarter.Gross profits increased 6.2% year over year to approximately $1.43 billion. The gross margin expanded 70 basis points (bps) on a year-over-year basis to 30.2%. The company’s operating income increased 8.2% year over year to $992 million. Meanwhile, the operating margin expanded 90 bps to 21% year over year.INFY’s Balance Sheet and Cash Flow DetailsInfosys ended the fiscal fourth quarter with consolidated cash and investments of $5.56 billion, up from $4.65 billion recorded in the previous quarter. During the fiscal fourth quarter, the company generated a free cash flow of $892 million.Infosys Initiates Fiscal 2026 GuidanceInfosys projects full-fiscal 2026 revenues to grow 0-3% on a cc basis. Moreover, it expects a fiscal 2026 operating margin in the range of 20-22%. The Zacks Consensus Estimate for fiscal 2026 revenues and earnings is currently pegged at $5.05 billion and 19 cents per share, respectively.INFY’s Zacks Rank & Stocks to ConsiderCurrently, Infosys carries a Zacks Rank #3 (Hold).Broadcom AVGO, NVIDIA NVDA and STMicroelectronics STM are some better-ranked stocks that investors can consider in the broader Zacks Computer and Technology sector. Broadcom sports a Zacks Rank #1 (Strong Buy), while NVIDIA and STMicroelectronics carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for Broadcom’s fiscal 2025 earnings has been revised upward by 4 cents to $6.60 per share in the past 30 days, suggesting an increase of 35.5% from fiscal 2024’s reported figure. Broadcom shares have rallied 38.7% over the past year.The Zacks Consensus Estimate for NVIDIA’s fiscal 2026 earnings has moved upward by 2 cents to $4.41 per share in the past 30 days, reflecting robust 47.5% year-over-year growth. NVIDIA shares have risen 23.4% in the trailing 12 months.The Zacks Consensus Estimate for STMicroelectronics’ full-year 2025 earnings has been revised upward by 3 cents to 85 cents per share over the past 60 days, and suggests a year-over-year decline of 48.8%. STMicroelectronics shares have plunged 49.2% over the past year.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report STMicroelectronics N.V. (STM): Free Stock Analysis Report American Noble Gas Inc. (INFY): Free Stock Analysis Report NVIDIA Corporation (NVDA): Free Stock Analysis Report Broadcom Inc. (AVGO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks