Infosys ADR Jumps Over 8% After Q3 Results, Higher FY26 Revenue Guidance
New York-listed shares of Infosys Ltd. surged over 8% on Wednesday after India’s second largest IT firm announced its third quarter results and lifted its fiscal 2026 revenue guidance.
The American Depository Receipt (ADR) of Infosys gained as much as 8.6% to $19.03 as of 8:18 p.m. India time.
What is an ADR?
The ADR is a tool for multinationals/foreign companies (primarily based outside the US) or organisations to trade on US stock markets, just like regular shares of US companies.
In theory, an ADR is similar to a special certificate issued by a US bank. It is a negotiable certificate representing shares in a foreign company traded on US stock exchanges.
Q3 Results and Guidance
Infosys revised its guidance for FY26 revenue growth to 3.0%–3.5% in constant currency terms from 2%–3% earlier and operating margin to 20%-22%.
Executives said the company has scaled its artificial intelligence offerings to clients in foreign markets. “Infosys delivered a strong Q3 performance demonstrating how our differentiated value propositions in enterprise AI, through Infosys Topaz, are consistently driving higher market share,” said CEO and MD Salil Parekh.
“Clients increasingly view Infosys as their AI partner with demonstrated expertise, innovation capabilities and strong delivery credentials. This has helped them unlock business potential and enhanced value realization,” he added.
Attrition and Hiring
Infosys Took 18,000 Freshers So Far In FY26, CFO Says Amid Attrition Dip
Consolidated net profit fell nearly 10% to Rs 6,654 crore in the October-December quarter, compared to the preceding quarter, according to a stock exchange filing on Wednesday. Infosys had to provision Rs 1,289 crore as a one-time cost to comply with new labour codes notified by the government late last year.
Revenue up 2.2% at Rs 45,479 crore versus Rs 44,490 crore (Bloomberg estimate: Rs 45,204 crore)
EBIT up 1.3% at Rs 9,479 crore versus Rs 9,353 crore (Bloomberg estimate: Rs 9,558 crore)
EBIT margin at 20.8 % versus 21.02% (Bloomberg estimate: 21.14%)
Profit down 9.6% at Rs 6,654 crore versus Rs 7,364 crore (Bloomberg estimate: Rs 7,397 crore)
The total contract value (TCV) of large deal wins was $4.8 billion, with net new of 57%, a statement said.
“Our performance was broad-based in Q3 with 0.6% sequential revenue growth, 0.2% adjusted operating margin expansion, stellar large deal wins at $4.8 billion and robust adjusted free cash generation at $965 million in a seasonally weak quarter” said CFO Jayesh Sanghrajka.
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Stock Market Reaction
Shares of Infosys closed 0.75% higher at Rs 1,609.9 on the BSE, ahead of the results, compared to a 0.3% decline in the benchmark Sensex. The stock has fallen 17% in the last 12 months.
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