Infosys shares in focus: Should you buy, sell or hold IT major’s stock after Q4 results? EXPLAINED


Infosys Q4 Results: Infosys shares will be in focus after the IT major announced its January-March quarter results for fiscal 2024-25 on Thursday, April 17. The company recorded an 11.75 per cent fall in its consolidated net profits to 7,033 crore in the fourth quarter, compared to 7,969 crore in the same period a year ago.

After a weak results announcement, Infosys also slashed its revenue growth forecast to 0 to 3 per cent for the financial year 2025-26, compared to a 4.5 to 5 per cent growth estimate for FY2024-25. The company cited uncertainties in the global markets for the cautionary move. 

Also Read | Infosys ADR drops over 4% on NYSE after IT major’s net profit tanks

Infosys Q4 Results

The IT firm’s revenue from core operations rose 8 per cent to 40,925 crore for the fourth quarter, compared with 37,923 crore in the same period, the previous financial year.

Along with the quarter results, Infosys also announced a 22 per share final dividend issue for FY25. The company has fixed a “Record Date” for the dividend issue on May 30, 2025, while the dividend payment will be credited on June 30, 2025.

Infosys ADR shares were down over 4 per cent after the US markets opened after the results announcement to $15.68 apiece, compared to $16.58 at the previous Wall Street close.

In India, Infosys shares closed 0.51 per cent higher at 1,420.20 after Thursday’s stock market, compared to 1,413 at the previous market close. The fourth quarter results were announced after market operating hours on April 17. 

Also Read | Infosys misses its growth goal, sees cold FY26 start

Infosys Q4 Results Review

Susovon Nayak, IT Research Analyst at Anand Rathi Institutional Equities, said that Infosys has shown higher-than-anticipated revenue de-growth in the fourth quarter results along with the muted guidance for the new 2025-26 fiscal.

“Weak set of results for Infosys in Q4FY25, with muted guidance for FY26 growth being 1.5% (midpoint of the range 0-3% constant currency growth), reflecting macro headwinds and potential deferral inclientspends,” he said.

“Higher than anticipated revenue de-growth in Q4FY25, coupled with muted guidance for YoY growth in FY26 being 1.5% (midpoint of the range 0-3% constant currency growth), reflects macro headwinds and potential deferral in client spends,” said the IT sector analyst.

“Operating margin guidance at 20-22%. FY26 FCF expected to stay >100% of net profit. Infosys has approved the acquisitions of MRE Consulting in the US and The Missing Link in Australia, strengthening its digital and cybersecuritycapabilities,” said Nayak.

Other analysts also acknowledged the macroeconomic headwinds and Trump tariff pressures for the IT companies like TCS, Wipro, and Infosys.

“Q4FY25 results of Indian IT companies reveal a mixed performance with cautious management outlooks for FY26 amid global uncertainties,” said Rajesh Sinha, Senior Research Analyst at Bonanza Group. 

Also Read | Infosys salary hike: IT major gives BIG update on increments to employees

IT Sector in FY26

Rajesh Sinha also estimates that in the financial year 2025-26, the IT sector companies are likely to face challenges which are reflected through the macro issues, and limited client spending.

“Post result of these IT companies, we are expecting the Indian IT companies may face a challenging FY26 (better that FY25) reflecting macroeconomic challenges and client spending uncertainties, but focused on digital, cloud, and AI capabilities will help to sustain long-term growth. Also, the biggest concern for Indian IT companies will be the US President Donald Trump’s reciprocal tariffs and sectoral tariffs, which may force enterprise to rethink on tech spends which cause delays in decision making,” said Sinha. 

Also Read | Infosys Q4 Results: Attrition rate rises to 14.1% sequentially

Infosys Stock to buy?

Kunal Kamble, the Senior Technical Research Analyst at Bonanza Group, said that the Infosys futures are forming a ‘Lower Low–Lower High’ structure, a sign of a negative trend.

“The recent buying activity appears to be driven by the stock entering the oversold zone. The RSI has entered the oversold territory twice, suggesting a possible pause in the ongoing downtrend, with some profit booking likely leading to a short-term upward move,” said the technical analyst.

Kamble reiterated that the overall trend of Infosys stock remains negative, and any bounceback in the shares would serve as a selling opportunity for the investors who own Infosys.

“However, the overall trend remains negative. Any bounce should be used as a selling opportunityinInfosys,” he said.

Read all Q4 Results news here

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.



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