Infosys (INFY) Q3 24/25 earnings summary

Executive summary

• Revenue for Q3 FY25 grew 1.7% quarter-on-quarter and 7.6% year-over-year in constant currency, with all verticals and most geographies showing YoY growth; nine-month revenue reached ₹122,064 crore, up 5.5% YoY.

• Net profit for Q3 was ₹6,822 crore, up 11.6% YoY; operating margin was 21.3%, up 0.8 percentage points YoY.

• Large deal TCV for Q3 was $2.5 billion, with 63% net new; free cash flow hit an all-time high of $1.26 billion (₹10,647 crore), up 91.9% YoY.

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

• 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; nine-month EPS was ₹47.52, up 7.7% YoY.

• Gross profit margin for Q3 was 30.3%; operating profit margin was 21.3%.

• Free cash flow for the quarter was $1.26 billion, up 51% sequentially and 90% 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.

• Consolidated cash and investments stood at ₹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.