Fri Jan 17 13:18:32 UTC 2025: ## Infosys Shares Plunge Despite Strong Q3 Earnings

**MUMBAI, INDIA** – Shares of Indian IT giant Infosys experienced a significant drop on Friday, falling over 5% in early trading on the Bombay Stock Exchange (BSE). This follows a similar decline in its American Depositary Receipts (ADRs) on the New York Stock Exchange (NYSE) after the company released its third-quarter results on January 16th.

While Infosys reported an 11% year-on-year increase in net profit to ₹6,806 crore (approximately $825 million USD) and an 8% year-on-year revenue growth to ₹41,764 crore (approximately $5 billion USD), the market reacted negatively. The company also upgraded its FY25 revenue growth guidance.

The sharp decline is attributed to concerns about a potential slowdown in the fourth quarter due to seasonality and fewer working days. Despite the positive Q3 results and revised guidance, investors appear apprehensive about future performance.

However, several brokerages remain bullish on Infosys’ prospects. Emkay Global Financial Services maintained a ‘Buy’ rating with a target price of ₹2,150, while analysts at Nuvama Institutional Equities and Nomura Global Markets Research cited improving demand and a strong deal pipeline as reasons for optimism. These analysts believe the current dip presents a buying opportunity.

The market’s reaction highlights the sensitivity of IT sector stocks to even hints of slowing growth, despite strong underlying financial performance.

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