Infosys (INFY) Stock Forecast & Price Target

Infosys has demonstrated a strong commitment to workforce growth, adding 5,591 employees sequentially to sustain its operational efficiency, with plans to onboard more than 15,000 freshers in FY25. The company reported a year-over-year revenue increase of 3.3% on a constant currency basis, exceeding both internal and consensus estimates, while also raising its revenue guidance for FY25 from 3%-4% to 3.75%-4.5%. Supporting this growth, a stable pricing environment and improved discretionary spending in the Financial Services sector further bolster the optimistic financial outlook for Infosys.

Infosys reported a significant decline in large deal Total Contract Value (TCV) of approximately 70% year-over-year, reflecting a challenging market environment, while net new large deal TCV saw a drop of around 73% year-over-year. Despite a slight 1% quarter-over-quarter increase in headcount, the year-over-year reduction of 3% indicates difficulties in sustaining employee levels amidst economic pressures. The outlook for 2HFY25 suggests lower margins compared to 1HFY25, primarily due to anticipated wage hikes and seasonal factors, which, combined with the adverse trend in deal sizes, raises concerns about the company’s growth and financial stability moving forward.