Shares of New York-listed Infosys Ltd rose more than 8% on Wednesday after India’s second-largest IT company reported third-quarter results and lifted fiscal 2026 revenue guidance.
American Depository Receipt (ADR) of Infosys gained 8.6% to $19.03 at 8:18 pm India time.
ADRs are a tool for multinational/foreign companies (mainly based outside the US) or organizations to trade on the US stock market, just like common shares of US companies.
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In theory, ADRs are similar to special certificates issued by US banks. These are negotiable certificates representing shares in foreign companies that are traded on a US stock exchange.
Infosys revised its guidance for FY26 revenue growth to 3.0%-3.5% in constant currency from 2%-3% earlier and operating margin to 20%-22%.
Executives said the company has scaled artificial intelligence offerings to clients in foreign markets. “Infosys delivered a strong Q3 performance that demonstrates how its differentiated value proposition in AI companies, through Infosys Topaz, is consistently driving higher market share,” said CEO and MD Salil Parekh.
“Clients increasingly see Infosys as their AI partner with expertise, innovation capabilities and strong delivery credentials. This has helped them unlock business potential and increase value realization,” he said.
Infosys To Hire 18,000 Freshers In FY26, CFO Says Amid Attrition Dip
Infosys Q3 results
Consolidated net profit fell nearly 10% to Rs 6,654 crore in the October-December quarter, compared to the previous quarter, according to a stock exchange filing on Wednesday. Infosys had to provide Rs 1,289 crore as a one-time cost to comply with the new labor code notified by the government late last year.
Infosys Q3 Results Highlights (Consolidated, QoQ)
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Revenue up 2.2% at Rs 45,479 crore versus Rs 44,490 crore (Bloomberg estimate: Rs 45,204 crore)
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EBIT up 1.3% at Rs 9,479 crore versus Rs 9,353 crore (Bloomberg estimate: Rs 9,558 crore)
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EBIT margin at 20.8% versus 21.02% (Bloomberg Estimate: 21.14%)
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Profit down 9.6% at Rs 6,654 crore versus Rs 7,364 crore (Bloomberg estimate: Rs 7,397 crore)
The total contract value (TCV) of the big win was $4.8 billion, with net new 57%, the statement said.
“Our performance is broadly based in Q3 with 0.6% sequential revenue growth, 0.2% adjusted operating margin expansion, a big win at $4.8 billion and a healthy and strong set of free cash generation at $965 million in a very seasonal quarter” said CFO Jayesh Sanghrajka.
Infosys shares closed 0.75% higher at Rs 1,609.9 on the BSE, ahead of the results, compared with a 0.3% decline in the benchmark Sensex. The stock has fallen 17% over the past 12 months.
Infosys Q3 Results: Net Profit Down 10% On Impact Of New Labor Code, Further Revised Guidance
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