Infosys (INFY) Q3 24/25 (Media) earnings summary

Executive summary

• Q3 revenue grew 1.7% quarter-on-quarter and 6.1% year-over-year in constant currency, reaching $4,939 million and surpassing market expectations.

• Operating margin for Q3 reached 21.3%, up 0.2% sequentially and 0.8% year-over-year.

• Free cash flow hit a record $1.26 billion, up 90% year-over-year, with FCF conversion at 156.6% of net profit.

• Large deal wins totaled $2.5 billion, with net new TCV rising from 40% to 63% sequentially.

• Headcount increased by over 5,000 sequentially, now exceeding 323,000 employees globally.

Financial highlights

• Q3 reported revenues grew 5.9% year-over-year to $4,939 million.

• Basic EPS for Q3 was $0.19, up 9.6% year-over-year; for nine months, $0.57, up 6.1% year-over-year.

• Operating margin for nine months ended Dec 2024 was 21.2%, up 0.3% year-over-year.

• Free cash flow for nine months was $3,196 million, up 57.1% year-over-year.

• Pricing improved by 3.6% over nine months, supporting a 30 basis point margin expansion despite headwinds.

Outlook and guidance

• Revenue growth guidance for the full year revised upward to 4.5%-5% in constant currency.

• Operating margin guidance maintained at 20%-22%.

• Compensation increases to be rolled out in two phases, with expected headwinds on margins in Q4 and Q1.

• Hiring of 15,000+ freshers this year and 20,000+ planned for FY26; lateral hiring remains agile and demand-driven.