India’s second largest IT services company, Infosys Ltd, missed its revenue growth target for the fiscal year 25, and is still profitable despite estimates in both areas. The company also predicted the slowest fiscal growth at the beginning of the decade.
The Bengaluru stage company ended in March 2025 with revenue of US$19.28 billion, beating Bloomberg 46 analysts estimate it to be $19.16 billion. However, its 4.2% year-on-year revenue grew at a constant currency level (not taking into account currency volatility) missed the 4.5-5% guidance outlined in January 2025.
In terms of profits, Infosys’ net profit fell 0.28% to $3.16 billion. A survey of 44 analysts Bloomberg Net profit was set at US$3.09 billion.
In addition, the company expects current fiscal revenue to grow by 3% in a constant currency manner, the slowest guidance since April 2009, when it expects revenue to fall by 6.7-3.1% in FY10.
Peer Wipro Ltd also hopes to grow its top line at its slowest pace in the first three months of fiscal 26. On Wednesday, Wipro outlined quarterly revenues between 3.5% and 1.5% in a constant currency manner. Wipro provides guidance for the next quarter, while Infosys provides guidance for the whole year.
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“At the bottom of the guidance, we bake some deterioration in the environment, some uncertainty has increased,” Infosys Chief Financial Officer Jayesh Sanghrajka said in a post-graduation media briefing on Thursday.
However, Salil Parekh, the company’s CEO, said that customers didn’t stop and things could change quickly. “In terms of what is likely to happen to the economic outlook, things may change in a short time,” Parek said in a media briefing.
TCS and WIPRO also call on clients to make slow decisions and stop on technical projects. All of this could mean lower job opportunities for the country’s largest IT service provider, which has 2.5 million college graduates.
The frustrating prospect stems from President Donald Trump’s announcement of reciprocity tariffs on April 2, a week later, he suspended tariffs 90 days after the market beheading. This uncertainty could prompt the world’s largest companies, customers of local outsourcing companies that can block spending on technology projects.
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“[T]He imposes the U.S. temporary expropriation of a range of commodities and its subsequent additional/differential liability, which leads to uncertainty in the final implementation. takeout. ”
The country’s largest IT outsourcing signal is a slow start to the fiscal year 26, which means the current Treasury Ministry may just be a challenging year for the country’s $2.83 billion IT outsourcing industry.
Shareholder thumbs up
Meanwhile, shareholders appreciate the performance of the country’s four largest IT outsourcing providers. Infosys shares on the New York Stock Exchange fell 3% to $16.08 in a pre-sale deal on Thursday.
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Wipro’s shares fell 3.19% on the New York Stock Exchange to $2.73 per piece on Wednesday. Even TCS, the largest IT outsourcing company in India, shut down 1.8% ₹The day after the results were announced on April 10, there were 3232 pieces per piece on the BSE.
Genai’s Ghost
Experts say the stock price trend signal indicates that outsourcing may face challenges from the AI generation, which may eat most of the lunch.
“We believe that generated AI will act as a deflationary force for services that generate AI solutions,” said Keith Bachman, an analyst at BMO Capital Markets, in an April 16 report. “In our view, many if not most supply/service delivery areas include deployment, application development and maintenance (ADM), BPO and digital institutions.”
Bachman added that companies will have to get more work to offset the impact of the AI generation. “The IT Services Market segment is primarily a PXQ model (billing $$ times the number of hours required to complete a task), so as the work or effort required to generate AI is reduced by less work or effort required, IT Services companies will have to grow the number to offset the efficiency improvements in generating AI,” Bachman said.
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For Infosys’ revenue grew by 3.85% in USD, the majority of its business growth was behind banks and financial institutions. The bank’s fiscal revenue last time accounted for more than one-third of the company’s incremental revenue. Infosys earns 28% or $5.3 billion in full-year revenue from financial institutions.
Fourth quarter figures
Infosys’ revenue fell 4.23% to $4.73 billion in the fourth quarter (January to March), mostly due to lower business for clients in the life sciences field.
Infosys became the third company after Tata Consulting Services Ltd. (TCS) and Wipro, and reported a continuous decline in its fourth-quarter revenue, highlighting the tense macroeconomic situation that prompted clients to suspend their technology projects.
However, its fourth-quarter net profit rose 1.12% to $813 million, with operating margin rising 40 basis points year-on-year to 21.1%. A basis point is a percentage point of one percentage point. Infosys became the second of the top four companies reporting growth in operating margins. The cross-city peer Wipro’s profit margin expanded to 17.1% in the fourth quarter.
Hiring uncertainty
In terms of employees. Infosys increased its workforce by 6,338, ending fiscal 25 years with 323,578 employees. This is consistent with peers TCS and WIPRO, which added 6,433 and 732 employees in the last fiscal year, respectively.
Still, Infosys avoided recruiting goals like Peers TCS and Wipro, and management adopted a wait approach. This ambiguity about the stance of the company’s employment suggests that it is vigilant against future challenges related to the demand for technical jobs.
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The number of people is a key determinant of the overall demand environment. The increase in recruitment or increased employee numbers indicates a higher demand for technical services, while cutting employee signals reduces the business of software service providers.
