Infosys Q3 Results: ADR Jumps Over 8% After Strong Earnings, 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. This significant jump in the company’s ADR is a testament to the strong earnings reported by Infosys, which has boosted investor sentiment.
Understanding ADRs and Their Significance
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.
For Indian investors, understanding ADRs is crucial as it provides an opportunity to invest in foreign companies, including those listed on the US stock exchanges. To learn more about American Depository Receipt and how it works, you can visit our website.
Infosys Q3 Results: Key Highlights
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%. This upward revision in guidance is a positive indicator for the company’s future prospects and reflects the strong demand for its services.
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.
Infosys’ Focus on Artificial Intelligence
Infosys’ focus on artificial intelligence is a strategic move to capitalize on the growing demand for AI solutions. The company’s investment in AI has yielded positive results, with a significant increase in its market share. To learn more about Artificial Intelligence in Stock Market, you can read our detailed article.
Consolidated Net Profit and Revenue
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).
Total Contract Value of Large Deal Wins
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.
Infosys’ Hiring and Attrition
Infosys Took 18,000 Freshers So Far In FY26, CFO Says Amid Attrition Dip. The company’s focus on hiring fresh talent is a strategic move to capitalize on the growing demand for its services. To learn more about Stock Market Jobs, you can read our detailed article.
Conclusion
In conclusion, Infosys’ Q3 results have been positive, with a significant jump in its ADR and upward revision in guidance. The company’s focus on artificial intelligence and hiring fresh talent is a strategic move to capitalize on the growing demand for its services. For Indian investors, it is essential to stay updated with the latest news and trends in the stock market. You can visit our website to learn more about Indian Stock Market and stay ahead of the curve.
