Infosys (INFY) Q4 24/25 (Media) earnings summary

Executive summary

• FY25 revenues reached $19.28 billion, up 4.2% in constant currency, with $11.6 billion in large deal wins and $4.1 billion in free cash flow.

• Operating margin for FY25 stood at 21.1%, with margin guidance for FY26 at 20%-22%.

• Strategic expansion included acquisitions in the U.S. (energy, consulting), Australia (cybersecurity), and a new joint venture partner in Japan.

• AI-led transformation is a key focus, with over 200 AI agents developed, 400 AI projects underway, and the launch of an open-source Responsible AI Toolkit.

• The Board proposed a final dividend, with total dividend up 13.2% over last year.

Financial highlights

• FY25 reported revenues grew 3.9% year-over-year to $19.28 billion, with 4.2% growth in constant currency.

• Operating margin improved by 50 basis points year-over-year to 21.1%.

• Free cash flow reached $4.1 billion, up 41.8% year-over-year.

• Large deal TCV for the year was $11.6 billion, with 56% net new wins.

• Q4 revenues were $4.73 billion, up 4.8% year-over-year in constant currency, with a 3.5% sequential decline due to seasonality and lower third-party costs.

Outlook and guidance

• FY26 revenue growth guidance is 0%-3% in constant currency, reflecting macroeconomic uncertainty.

• Margin guidance for FY26 is 20%-22%.

• Hiring plan for FY26 includes 20,000+ freshers, balancing attrition and growth.

• Guidance scenarios factor in potential deterioration or marginal improvement in the environment.