Infosys: Growth of 4.2% in CC, operating margin expansion of 0.5% in FY25

- Highest ever Free Cash Flow at $4.1 billion for FY25
- FY26 revenue guidance at 0%-3% and operating margin at 20%-22%

BENGALURU, India, April 17, 2025 /PRNewswire/ -- Infosys (NSE: INFY), (BSE: INFY), (NYSE: INFY), a global leader in next-generation digital services and consulting, delivered $19,277 million in FY25 revenues, growth of 4.2% in constant currency. Operating margin was at 21.1%, expansion of 0.5% year on year. Free cash flow was the highest ever at $4,088 million, an increase of 41.8% year on year. TCV of large deal wins was $11.6 billion for the year, with 56% net new.

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Q4 revenues were $4,730 million, an increase of 4.8% year on year in constant currency and 3.6% in reported terms. Operating margin was at 21.0%, an increase of 0.9% year on year.

"We have built a resilient organization with sharp focus on client-centricity and responsiveness to the market, thanks to the trust of our clients and dedication of our employees. Our performance for the year has been robust in terms of revenues, expansion in operating margins and highest ever free cash generation", said Salil Parekh, CEO and MD. "Our depth in AI, cloud and digital and strength in cost efficiency, automation, and consolidation position us well for the needs of our clients", he added.


                  4.2% FY               21.1% FY             8.3% FY 
     
     
                $11.6 Bn FY 
     
              $4.1 Bn FY
        4.8% Q4                21.0% Q4                 10.1% Q4                       $2.6 Bn Q4              $0.9 Bn Q4
     YoY CC Growth        Operating Margin       EPS Increase               Large Deal                   Free
                           0.5% Increase in
                                  FY              (? terms)*              TCV                         Cash Flow

Guidance for FY26:

    --  Revenue growth of 0%-3% in constant currency
    --  Operating margin of 20%-22%

Key highlights:



     
                
                   For the quarter ended March 31, 2025                                   For the year ended March 31, 2025


     Revenues in CC terms grew by 4.8% YoY and declined by 3.5% QoQ          Revenues in CC terms grew by 4.2% YoY


     Reported revenues at $4,730 million, growth of 3.6% YoY                 Reported revenues at $19,277 million, growth of
                                                                               3.9% YoY


     Operating margin at 21.0%, increase of 0.9% YoY and decline of 0.3% QoQ Operating margin at 21.1%, growth of 0.5% YoY


     Basic EPS at $0.20, decline of 15.2% YoY                                Basic EPS at $0.76, decline of 0.3% YoY


     FCF at $892 million, growth of 5.2% YoY;                                FCF at $4,088 million, growth of 41.8% YoY;


     FCF conversion at 109.6% of net profit                                  FCF conversion at 129.3% of net profit

"FY25 operating margins expanded by 0.5% which reflects our relentless focus on identifying opportunities for efficiency and executing Project Maximus with discipline, after navigating through multiple headwinds in a challenging macro environment. We delivered the highest ever free cash flows in the history of the company in FY25," said Jayesh Sanghrajka, CFO. The Board has proposed a final dividend of `22, which along with the interim dividend, is an increase of 13.2% over last year," he added.

*EPS Increase post normalization of Income Tax refunds

1. Client wins & Testimonials

    --  Infosys announced the expansion of its long-standing strategic
        collaboration with Citizens to Propel AI-led Transformation. Michael
        Ruttledge, Chief Information Officer, Citizens Financial Group, said,
        "Infosys has been a key strategic collaborator in Citizens' next-gen
        transformation program for the last five years. Together, we have not
        only modernized our technology landscape with domain-centric, cloud
        native platforms but also built a foundation for future growth aligned
        with Citizens' north star technology vision without losing focus on
        resiliency and stability."
    --  Infosys announced the expansion of its collaboration with Siemens AG to
        accelerate Siemens AG digital learning initiatives with generative AI.
        Jenny Lin, Global Head of Learning & Growth at Siemens AG, said, "A
        thriving learning and growth environment is essential for Siemens to
        maintain our competitive edge and foster innovation. By providing our
        people with the tools, resources, and support they need to continuously
        develop their skills, we empower our people to meet the challenges of
        the future. Infosys' expertise in digital transformation and AI is very
        valuable in creating a more engaging and effective learning experience
        for everyone. By leveraging GenAI on Siemens' digital learning platform
        we can foster a culture of lifelong learning and empower our teams to
        reach their full potential."
    --  Infosys announced a strategic, long-term collaboration with Lufthansa
        Group (LHG) and Lufthansa Systems GmbH (LSY) to accelerate digital
        transformation and drive innovation in the aviation industry. Thomas
        Wittmann - CEO, Lufthansa Systems, said, "At Lufthansa Systems, we
        champion a modular approach to solutions and collaborations, ensuring
        adaptability and tailoring to the unique needs of each airline. This
        principle extends perfectly to our collaboration with Infosys. By
        combining our deep aviation expertise with Infosys's global technology
        prowess and establishing a dedicated Global Capability Center (GCC), we
        are not only enhancing our one-stop-shop offerings but also accelerating
        the pace of digital innovation across the aviation industry. This
        collaboration empowers us to deliver cutting-edge solutions with greater
        agility and scale, ultimately benefiting our airline customers with more
        efficient, innovative, and cost-effective technologies."
    --  Infosys announced a successful collaboration with LKQ Europe to adopt a
        unified, cloud-based digital platform to streamline its HR processes
        across 18 countries, leveraging Infosys Cobalt. David Brookfield, Vice
        President, Human Resources, LKQ Europe, said, "Our collaboration with
        Infosys is a crucial step in helping us harmonize and simplify our wider
        business processes - ultimately enabling faster delivery and better
        service for our end customers. Through the platform, we will unify our
        HR processes across locations to drive efficiency and enhance regulatory
        compliance. Looking ahead, we believe this platform will empower our
        workforce and foster a more cohesive organizational culture, enabling us
        to continue leading the automotive aftermarket industry."
    --  Infosys announced the launch of its open-source Responsible AI Toolkit
        designed to help enterprises innovate responsibly while addressing the
        challenges and risks associated with ethical AI adoption. Sunil Abraham,
        Public Policy Director - Data Economy and Emerging Tech, Meta, said, "We
        congratulate Infosys on launching an openly available Responsible AI
        Toolkit, which will contribute to advancing safe and responsible AI
        through open innovation. Open-source code and open datasets is essential
        to empower a broad spectrum of AI innovators, builders, and adopters
        with the information and tools needed to harness the advancements in
        ways that prioritize safety, diversity, economic opportunity and
        benefits to all."
    --  Infosys announced a strategic collaboration with Ontex Group N.V. to
        drive their ERP transformation. Jeroen Dejonckheere, VP Business
        Transformation, Ontex, said "We are excited to collaborate with Infosys
        on our business transformation journey for modernising our ERP systems
        to SAP S/4HANA. We also look forward to leveraging Infosys Topaz and
        embrace the power of AI for our enterprise growth. This will be a
        significant step forward for us to deliver exceptional experiences for
        our employees, suppliers, and customers."

2. Recognitions & Awards

Brand

    --  Recognized as one of the World's Most Ethical Companies in 2025 for the
        fifth consecutive year by Ethisphere
    --  Recognized as the Global Top Employer 2025 for the fifth consecutive
        year by the Top Employers Institute
    --  Recognized as a Top 3 IT services brand and the fastest growing IT
        services brand globally in the Brand Finance Global 500 2025 report
    --  Featured in 2025 LinkedIn's Top Companies list in India, US, and Canada

AI and Cloud Services

    --  Positioned as a leader in The Forrester Wave(TM): Application
        Modernization and Multicloud Managed Services, Q1 2025
    --  Rated as a leader in IDC MarketScape: EMEA Industry Cloud Professional
        Services 2024-2025 Vendor Assessment
    --  Recognized as leader in ISG Intelligent Automation - Services 2024
        Provider lens(TM) study in US and Europe
    --  Recognized as leader in ISG Advanced Analytics and AI Services 2024
        Provider lens(TM) study in US and Europe
    --  Recognized as leader in ISG Oracle Cloud and Technology Ecosystem 2024
        Provider lens(TM) study in US, APAC and Europe

Key Digital Services

    --  Positioned as a leader in The Forrester Wave(TM): Modern Application
        Development Services, Q1 2025
    --  Rated as a leader in Custom Application Development Services PEAK
        Matrix® Assessment 2025 by Everest Group
    --  Rated as a leader in Application Management Services PEAK Matrix®
        Assessment 2025 by Everest Group
    --  Rated as a leader in SAP Business Application Services PEAK Matrix®
        Assessment 2025 by Everest Group
    --  Rated as a leader in IDC MarketScape: Worldwide SAP Implementation
        Services 2025 Vendor Assessment
    --  Rated as a leader in IDC MarketScape: Worldwide IIoT Engineering and
        Managed Services
    --  Rated as a leader in IDC MarketScape: Worldwide IIoT Consulting and
        Integration Services
    --  Recognized as a leader in HFS Horizons: Salesforce Services, 2025
    --  Recognized as a leader in HFS Horizons: Generative Enterprise Services,
        2025
    --  Recognized as a leader in Cognitive & Self-Healing IT Infrastructure
        Management Solutions 2025 by NelsonHall
    --  Positioned as a leader in Constellation ShortList((TM)): Cybersecurity
        Services
    --  Positioned as a leader in Constellation ShortList(TM): Innovation
        Services and Engineering
    --  Positioned as a leader in Constellation ShortList((TM)): Microsoft
        End-to-End Service Providers
    --  Positioned as a leader in Constellation ShortList(TM): QA Tools for
        NextGen Apps
    --  Recognized as leader in ISG Mainframe Services 2025 Provider lens(TM)
        study in US, Europe, and US Public Services
    --  Positioned as a leader in CapioIT APAC Salesforce SI and Solutions
        Providers Ecosystem Capture Share Report, 2025

Industry & Solutions

    --  Recognized as a leader in HFS Horizons: Telecom Service Providers, 2025
    --  Recognized as a leader in Core Banking Services 2025 by NelsonHall
    --  Recognized as leader in ISG Oil & Gas Industry - Services and Solutions
        2024 Provider lens(TM) study in Europe and North America
    --  Recognized as leader in ISG Healthcare Digital Services 2024 ISG
        Provider lens(TM) study in US
    --  Recognized as leader in ISG Insurance Services 2024 Provider lens(TM)
        study in North America, ANZ and Europe
    --  Recognized as leader in ISG Telecom, Media & Entertainment Industry
        Services 2024 Provider lens(TM) study in EMEA
    --  Recognized as leader in ISG Manufacturing Industry Services 2024
        Provider lens(TM) study in North America and Europe
    --  Recognized as leader in ISG Sustainability and ESG 2024 Provider
        lens(TM) study in Australia, US and Europe
    --  Recognized as leader in ISG Power & Utilities Services 2024 Provider
        lens(TM) study in North America, Europe and APAC
    --  Infosys Finacle received the Technology & Innovation Award under the
        Best Solution for Trade & Supply Chain category at the TMI Awards for
        Innovation & Excellence - 2024
    --  Infosys Finacle alongside its clients Newcastle Permanent (NP), Union
        Bank of Philippines, and Axis Bank received recognition at the Retail
        Banker International Asia Trailblazer Awards 2025 for Best Partnership
        for Customer Experience (with NP), Best Open Banking Initiative (with
        Union Bank of Philippines), and Best Strategic Partnership (with Axis
        Bank)
    --  Infosys Finacle alongside its clients Zand Bank, Emirates NBD, Union
        Bank of Philippines, and Arab National Bank received recognition at the
        Global Business Magazine Winners 2025 for Best Digital-First Bank UAE
        2025 (Zand Bank), Best Cloud-Based Core Banking Implementation Saudi
        Arabia 2025 (Emirates NBD), Best Customer Experience Innovation
        Philippines 2025 (Union Bank of Philippines), and Outstanding Digital
        Banking Transformation Saudi Arabia 2025 (Arab National Bank)
    --  Infosys Finacle recognized as a leader in the 2025 Gartner(®) Magic
        Quadrant(TM) for Retail Core Banking Systems, Europe
    --  Infosys BPM received the SSON North America Impact Awards 2025 with
        T-Mobile in the 'Customer Centricity' category

Read more about our Awards & Recognitions here.

About Infosys

Infosys is a global leader in next-generation digital services and consulting. Over 300,000 of our people work to amplify human potential and create the next opportunity for people, businesses and communities. We enable clients in more than 56 countries to navigate their digital transformation. With over four decades of experience in managing the systems and workings of global enterprises, we expertly steer clients, as they navigate their digital transformation powered by the cloud. We enable them with an AI-powered core, empower the business with agile digital at scale and drive continuous improvement with always-on learning through the transfer of digital skills, expertise, and ideas from our innovation ecosystem. We are deeply committed to being a well-governed, environmentally sustainable organization where diverse talent thrives in an inclusive workplace.

Visit www.infosys.com to see how Infosys (NSE, BSE, NYSE: INFY) can help your enterprise navigate your next.

Certain statements in this release concerning our future growth prospects, our future financial or operating performance, the McCamish cybersecurity incident are forward looking statements intended to qualify for the 'safe harbor' under the Private Securities Litigation Reform Act of 1995, which involve a number of risks and uncertainties that could cause actual results or outcomes to differ materially from those in such forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding the execution of our business strategy, increased competition for talent, our ability to attract and retain personnel, increase in wages, investments to reskill our employees, our ability to effectively implement a hybrid working model, economic uncertainties and geo-political situations, technological disruptions and innovations such as Generative AI, the complex and evolving regulatory landscape including immigration regulation changes, our ESG vision, our capital allocation policy and expectations concerning our market position, future operations, margins, profitability, liquidity, capital resources, our corporate actions including acquisitions, the amount of any additional costs, including indemnities or damages or claims, resulting directly or indirectly from the McCamish cybersecurity incident and the outcome and effect of related litigation. Important factors that may cause actual results or outcomes to differ from those implied by the forward-looking statements are discussed in more detail in our US Securities and Exchange Commission filings including our Annual Report on Form 20-F for the fiscal year ended March 31, 2024. These filings are available at https://www.sec.gov/. Infosys may, from time to time, make additional written and oral forward-looking statements, including statements contained in the Company's filings with the Securities and Exchange Commission and our reports to shareholders. The Company does not undertake to update any forward-looking statements that may be made from time to time by or on behalf of the Company unless it is required by law.



              
                
                  Infosys Limited and subsidiaries
    Extracted from the Condensed Consolidated Balance Sheet under IFRS as at: 
     (Dollars in millions)


                                                                                                      March 31, 2025 March 31, 2024



              
                
                  ASSETS



              
                
                  Current assets



              Cash and cash equivalents                                                                       2,861           1,773



              Current investments                                                                             1,460           1,548



              Trade receivables                                                                               3,645           3,620



              Unbilled revenue                                                                                1,503           1,531



              Other current assets                                                                            1,890           2,250



              
                
                  Total current assets                                               11,359          10,722



              
                
                  Non-current assets



              Property, plant and equipment and Right-of-use assets                                           2,235           2,323



              Goodwill and other Intangible assets                                                            1,505           1,042



              Non-current investments                                                                         1,294           1,404



              Unbilled revenue                                                                                  261             213



              Other non-current assets                                                                          765             819



              
                
                  Total non-current assets                                            6,060           5,801



              Total assets                                                                                   17,419          16,523



              LIABILITIES AND EQUITY



              Current liabilities



              Trade payables                                                                                    487             474



              Unearned revenue                                                                                  994             880



              Employee benefit obligations                                                                      340             314



              Other current liabilities and provisions                                                        3,191           2,983



              Total current liabilities                                                                       5,012           4,651



              Non-current liabilities



              Lease liabilities                                                                                 675             767



              Other non-current liabilities                                                                     477             500



              Total non-current liabilities                                                                   1,152           1,267



              Total liabilities                                                                               6,164           5,918



              Total equity attributable to equity holders of the company                                     11,205          10,559



              Non-controlling interests                                                                          50              46



              Total equity                                                                                   11,255          10,605



              Total liabilities and equity                                                                   17,419          16,523



     
                
                  Extracted from the Condensed Consolidated statement of Comprehensive Income under IFRS for


                                                                                                                                 
     
     
                  (Dollars in millions except per equity share data)




                                                                                                                  3 months ended       3 months ended                                          3 months ended       Year ended
                                                                                                                  March 31, 2025       March 31, 2024                                          March 31, 2024   March 31, 2024





     
                Revenues                                                                                                4,730                 4,564                                                   19,277            18,562



     Cost of sales                                                                                                        3,302                 3,219                                                   13,405            12,975



     
                Gross profit                                                                                            1,428                 1,345                                                    5,872             5,587



     
                Operating expenses:



        Selling and marketing expenses                                                                                      226                   209                                                      898               842



        Administrative expenses                                                                                             210                   219                                                      903               911



     Total operating expenses                                                                                               436                   428                                                    1,801             1,753



     
                Operating profit                                                                                          992                   917                                                    4,071             3,834



     Other income, net (3) (4)                                                                                              125                   315                                                      376               512



     
                Profit before income taxes                                                                              1,117                 1,232                                                    4,447             4,346



     Income tax expense (4)                                                                                                 303                   273                                                    1,285             1,177



     
                Net profit (before minority interest)                                                                     814                   959                                                    3,162             3,169



     Net profit (after minority interest)                                                                                   813                   958                                                    3,158             3,167



     
                Basic EPS ($) 
                (4)                                                                            0.2                  0.23                                                     0.76              0.77



     Diluted EPS ($) (4)                                                                                                    0.2                  0.23                                                     0.76              0.76

NOTES:

    1. The above information is extracted from the audited condensed
       consolidated Balance sheet and Statement of Comprehensive Income for the
       quarter and year ended March 31, 2025, which have been taken on record at
       the Board meeting held on April 17, 2025.
    2. A Fact Sheet providing the operating metrics of the Company can be
       downloaded from www.infosys.com.
    3. Other income is net of Finance Cost.
    4. Includes interest income (pre-tax) of $38Mn with reversal of net tax
       provisions amounting to $12Mn in FY'25 and interest income (pre-tax) of
       $232Mn with reversal of net tax provisions amounting to $5Mn in FY'24 on
       account of orders received under sections 250 & 254 of the Income Tax
       Act, 1961, from the Income Tax Authorities in India for certain
       assessment years. This has resulted in a positive impact on the
       consolidated Basic and Diluted EPS by approximately $0.01 for the quarter
       and year ended March 31, 2025 and $0.06 for the quarter and year ended
       March 31, 2024.
    5. As the quarter and year ended figures are taken from the source and
       rounded to the nearest digits, the quarter figures in this statement
       added up to the figures reported for the previous quarter might not
       always add up to the year ended figures reported in this statement.

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