Infosys Earnings: Strength in Large Deal Pipelines Propels Growth

Narrow-moat Infosys released good third-quarter earnings that beat our top- and bottom-line expectations. Despite seasonal weakness, robust demand for support on artificial intelligence projects and a solid large deal pipeline fueled revenue growth. Management raised the fiscal 2025 revenue growth guidance from 3.75%-4.75% to 4.5%-5.0% in constant currency, while maintaining operating margin guidance at 20%-22%. The updated guidance implies results relatively still in line with our previous projections for the year, and we expect a recovery in IT spending to keep driving long-term revenue growth.