Fri Jan 17 14:10:05 UTC 2025: ## Infosys Stock Plunges Despite Upbeat Earnings Report

**MUMBAI, INDIA** – Infosys Ltd. saw its stock price plummet 6% today, despite reporting strong December quarter results that prompted an upward revision of its FY25 revenue growth guidance. The decline stems from concerns about future growth, specifically the lack of large deal wins in the third quarter and a projected revenue decline in the fourth quarter.

While the company exceeded analyst expectations and raised its FY25 forecast, the Q4 outlook suggests a decrease in revenue due to seasonality, fewer working days, and a continuation of the drop in third-party sales seen in Q3. This cautious outlook has led several brokerages to maintain a “Hold” rating rather than upgrading to “Buy.”

Infosys management attributed the current focus on cost-cutting deals to a cautious client environment, though they expressed optimism about a near-term recovery in discretionary spending in sectors like BFSI and retail. However, even optimistic forecasts like Nirmal Bang’s (predicting a stronger FY26) still involved downward revisions to revenue and margin estimates.

Despite the positive aspects of the report, the lack of significant new large deals and the anticipated Q4 slowdown overshadowed the upwardly revised FY25 guidance, leading to investor apprehension and a significant drop in share price. Both the BSE and ADR shares experienced substantial losses. While some brokerages, like Antique Stock Broking, point towards improving demand in certain sectors, the overall market reaction highlights the importance of sustained large deal wins for maintaining investor confidence in Infosys’s future growth trajectory.

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