MW Outsourcing giant Infosys raised sales guidance for a third time. AI is helping.

By Steve Goldstein

Indian outsourcing giant Infosys Ltd. on Thursday raised its sales outlook for the third time this year as the company said clients were increasingly adopting its artificial-intelligence services.

Infosys $(INFY)$ said its fiscal third-quarter profit rose 10% to $804 million, or 19 cents a share, as revenue rose 6% to $4.94 billion. Analysts polled by FactSet expected earnings of 19 cents a share on revenue of $4.78 billion.

It improved margins by 0.8 percentage points year-over-year, to 21.3%, as revenue growth at constant currencies was 6.1%.

Infosys said it's been strengthening its enterprise AI capabilities as it's seen increasing client demand for generative AI.

The company, which added 101 clients during the quarter, said it's now targeting revenue growth in constant currencies between 4.5% and 5.0% for the year on an operating margin between 20% and 21%.

Infosys started the year targeting revenue growth, at the midpoint, of 3.5%, before increasing that guidance to 4.38% in the second quarter. The margin guidance has remained constant all year.

Infosys shares rose 0.5% in premarket trade. The stock has been stuck for the last year, rising 4% over the last 52 weeks.

-Steve Goldstein

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January 16, 2025 07:20 ET (12:20 GMT)

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