Infosys Achieves 4.2% Growth in FY25 with Strategic Margins Expansion
Infosys Achieves 4.2% Growth in FY25 with Strategic Margins Expansion
Infosys, the global frontrunner in digital services and consulting, has recently announced robust financial results for the fiscal year 2025. With a revenue of $19,277 million, the company reported a commendable growth of 4.2% in constant currency. Equally impressive was the operating margin, which saw an expansion of 0.5%, landing at 21.1% year-on-year.
Key Financial Highlights
In FY25, Infosys achieved its highest ever free cash flow of $4.1 billion, a significant increase of 41.8% compared to the previous year. The company's success is further highlighted by its total contract value (TCV) of large deal wins, which reached $11.6 billion, with 56% being net new deals. The fourth quarter alone witnessed revenues of $4,730 million, marking a year-on-year growth of 4.8% in constant currency.
CEO Salil Parekh attributed this success to the company’s focus on client-centric solutions and adaptability in a rapidly changing market environment. He emphasized that the mix of innovation in AI, cloud technologies, and digital services, coupled with operational efficiency, would keep Infosys well-positioned to serve its global client base.
Quarterly Perspectives
For the quarter ending March 31, 2025, Infosys experienced a revenue growth of 3.6% in reported terms. The operating margin for this quarter stood at 21.0%, reflecting a year-on-year increase of 0.9%, though it faced a slight decline of 0.3% when compared to the previous quarter. Basic earnings per share (EPS) was at $0.20, representing a 15.2% decline year-on-year.
Strategic Collaborations and Innovation
The company has expanded its strategic partnerships to further bolster its standing in the technology sector. Notably, Infosys extended its collaboration with Citizens Financial Group focused on AI transformation initiatives, reinforcing its commitment to innovation. Additionally, collaborations with Siemens AG and Lufthansa Group aim to integrate next-gen solutions that enhance operational efficiency and technological agility.
Infosys has also launched its open-source Responsible AI Toolkit, aimed at responsible innovation in AI, reflecting its commitment to not only technological advancement but ethical practices in AI adoption.
Recognition and Awards
Infosys continues to garner recognition as one of the World’s Most Ethical Companies for the fifth consecutive year. The company has also been acknowledged as a Global Top Employer 2025 and has consistently ranked among the top IT service providers globally.
In the realm of AI and cloud services, Infosys has been positioned as a leader across multiple independent assessments, showcasing its prowess and comprehensive service offerings in digital transformations.
Guidance for FY26
Looking ahead, Infosys has set a conservative revenue growth forecast of 0%-3% in constant currency for FY26, along with an operational margin target of 20%-22%. This outlook reflects the anticipated market dynamics and the company’s strategy to navigate through potential economic headwinds while maintaining a focus on efficiency and client value.
Conclusion
With its unwavering focus on growth, innovation, and ethics, Infosys stands as a beacon of resilience in the tech industry. As it capitalizes on its strong fundamentals and strategic collaborations, the company is poised to meet the evolving needs of its diverse client base while continuing to drive substantial shareholder value in the years to come.
Infosys’s commitment to leveraging its deep industry expertise and technological advancements will ensure it maintains its competitive edge in the global market.
Topics Business Technology）
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