Infosys Limited is a global leader in next-generation digital services and consulting, based in Bengaluru, India. The company reported its Q3 FY 2025 earnings, showcasing a stable growth trajectory marked by significant revenue increase and operational efficiency.
Total revenues for the quarter reached $4.939 billion, growing 1.7% sequentially and 6.1% year-on-year in constant currency. The year-to-date revenues as of December 31, 2024, amounted to $14.547 billion, reflecting a year-on-year increase of 3.9% in both constant currency and reported terms.
Operating margins were reported at 21.3%, an increase of 20 basis points sequentially and 80 basis points year-on-year. Adjusted profit showed an increase, with earnings per share (EPS) growing 11.4% year-on-year to $0.19. Free cash flow for the quarter was recorded at an all-time high of $1.263 billion, up 90% year-on-year.
Infosys announced a new guidance for revenue growth for fiscal year 2025, projecting a range of 4.5% to 5% in constant currency. The guidance on operating margin remained unchanged at 20% to 22%. During the quarter, the company secured large deal wins of $2.5 billion, with 63% classified as net new, marking a sequential growth of 57% in net new deal total contract value (TCV).
The total headcount reached 323,000, reflecting a sequential increase of 5,591 employees, marking the second consecutive quarter of hiring. The company’s utilization rate, excluding trainees, was strong at 86%. Days sales outstanding (DSO) stood at 74 days, with net unbilled revenue decreasing by $323 million sequentially to the lowest level in the last 12 quarters.
Infosys is witnessing broad-based growth across all verticals, particularly in financial services, which reported a robust volume increase, driving sustained demand. The company also indicated a resurgence in retail and consumer products in the U.S. However, growth in the automotive sector in Europe remained slow.
The financial services sector in the U.S. is benefiting from increased discretionary spend in capital markets, mortgages, and payments. The favorable outcomes in financial services are contributing to the overall strength of the company’s financial performance.
With strong metrics in revenue growth and operational performance, Infosys continues to position itself as a key player in the digital services industry, reinforcing its enterprise AI capabilities and expanding its client offerings.