Infosys (INFY) Q4 24/25 earnings summary

Executive summary

• FY 2025 revenue grew 6.1% year-over-year to ₹162,990 crore ($19.3 billion), with operating margin at 21.1% and record free cash flow of $4.1 billion (₹34,549 crore), and net profit at ₹26,750 crore.

• Large deal wins totaled $11.6 billion for the year, with 56% net new; Q4 saw 24 deals worth $2.6 billion.

• AI-led transformation, digital, and cloud services were key focus areas, with significant client engagements and expansion.

• Strategic acquisitions in energy consulting (US), cybersecurity (Australia), and a new JV partner in Japan were completed.

• The Board recommended a final dividend of ₹22 per share, bringing the total FY25 dividend to ₹43 per share, up 13.2% year-over-year.

Financial highlights

• FY 2025 revenue reached ₹162,990 crore ($19.3 billion), up 6.1% year-over-year and 4.2% in constant currency; acquisitions contributed 80 bps to growth.

• Q4 FY25 revenue was ₹40,925 crore, up 7.9% year-over-year; sequential revenue declined 3.5% due to lower third-party costs and seasonality.

• Operating margin for FY25 was 21.1%, up 0.5 percentage points year-over-year; Q4 margin at 21%.

• Net profit for FY25 was ₹26,750 crore, nearly flat year-over-year; EPS grew 8.3% YoY on a normalized basis.

• Free cash flow for FY25 was $4.2 billion (₹34,549 crore), 129% of net profit; adjusted for tax refund, $3.5 billion (112% of net profit).

Outlook and guidance

• FY 2026 revenue growth guidance is 0%-3% in constant currency, reflecting macro uncertainty and lower third-party revenues.

• Operating margin guidance for FY 2026 is 20%-22%.

• Free cash flow expected to remain above 100% of net profit; effective tax rate projected at 29%-30%.

• Guidance excludes impact from recently announced acquisitions.