Infosys (INFY) Q3 24/25 earnings summary

Executive summary

• Q3 FY25 revenue grew 7.6% year-over-year to ₹41,764 crore ($4,939 million), with all verticals and most geographies showing YoY growth.

• Operating margin improved to 21.3%, up 0.8 percentage points YoY, and net profit rose 11.6% YoY to ₹6,822 crore ($804 million).

• Large deal total contract value reached $2.5 billion, with 63% net new, and free cash flow hit an all-time high of $1.3 billion (₹10,647 crore).

• Headcount increased by 5,591 in Q3, now exceeding 323,000 globally, with over 15,000 freshers hired in FY25.

• Generative AI initiatives advanced, with over 100 new AI agents in development and four proprietary small language models launched.

Financial highlights

• Basic EPS for Q3 was ₹16.43, up 11.4% YoY; gross profit margin was 30.3% and operating profit margin 21.3%.

• Free cash flow for Q3 was $1.3 billion (₹10,647 crore), up 91.9% YoY; nine-month FCF reached $3.2 billion.

• DSO was 74 days; including unbilled net of unearned, DSO was 86 days, down by six days.

• Return on equity for Q3 was 33.1%; book value per share was ₹213 as of December 31, 2024.

• Consolidated cash and investments stood at $4.7 billion (₹39,836 crore) as of December 31, 2024.

Outlook and guidance

• FY25 revenue growth guidance revised upward to 4.5%-5% in constant currency.

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

• Q4 expected to be impacted by seasonality, lower working days, and reversal of Q3 third-party revenue benefits.