A Glimpse of Infosys's Earnings Potential

Infosys INFY is gearing up to announce its quarterly earnings on Thursday, 2025-04-17. Here's a quick overview of what investors should know before the release.

Analysts are estimating that Infosys will report an earnings per share (EPS) of $0.19.

The market awaits Infosys's announcement, with hopes high for news of surpassing estimates and providing upbeat guidance for the next quarter.

It's important for new investors to understand that guidance can be a significant driver of stock prices.

Performance in Previous Earnings

The company's EPS missed by $0.00 in the last quarter, leading to a 1.76% drop in the share price on the following day.

Here's a look at Infosys's past performance and the resulting price change:

Tracking Infosys's Stock Performance

Shares of Infosys were trading at $17.03 as of April 15. Over the last 52-week period, shares are up 1.61%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Insights Shared by Analysts on Infosys

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Infosys.

Infosys has received a total of 2 ratings from analysts, with the consensus rating as Neutral. With an average one-year price target of $17.5, the consensus suggests a potential 2.76% upside.

Analyzing Analyst Ratings Among Peers

The analysis below examines the analyst ratings and average 1-year price targets of Cognizant Tech Solns, Gartner and EPAM Systems, three significant industry players, providing valuable insights into their relative performance expectations and market positioning.

• Analysts currently favor an Neutral trajectory for Cognizant Tech Solns, with an average 1-year price target of $88.0, suggesting a potential 416.74% upside.
• Analysts currently favor an Outperform trajectory for Gartner, with an average 1-year price target of $521.33, suggesting a potential 2961.24% upside.
• Analysts currently favor an Buy trajectory for EPAM Systems, with an average 1-year price target of $265.8, suggesting a potential 1460.78% upside.

Peers Comparative Analysis Summary

In the peer analysis summary, key metrics for Cognizant Tech Solns, Gartner and EPAM Systems are highlighted, providing an understanding of their respective standings within the industry and offering insights into their market positions and comparative performance.

Key Takeaway:

Infosys ranks in the middle for consensus rating. It is at the bottom for revenue growth. It is at the top for gross profit. It is at the bottom for return on equity.

Delving into Infosys's Background

Infosys is a leading global IT services provider, with nearly 320,000 employees. Based in Bengaluru, the Indian IT services firm leverages its offshore outsourcing model to derive 60% of its revenue from North America. The company offers traditional IT services offerings: consulting, managed services and cloud infrastructure services, and business process outsourcing as a service.

Breaking Down Infosys's Financial Performance

Market Capitalization Highlights: Above the industry average, the company's market capitalization signifies a significant scale, indicating strong confidence and market prominence.

Positive Revenue Trend: Examining Infosys's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 5.92% as of 31 December, 2024, showcasing a substantial increase in top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Information Technology sector.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 16.28%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): Infosys's ROE stands out, surpassing industry averages. With an impressive ROE of 7.62%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): Infosys's ROA stands out, surpassing industry averages. With an impressive ROA of 4.84%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: Infosys's debt-to-equity ratio is below the industry average at 0.09, reflecting a lower dependency on debt financing and a more conservative financial approach.

To track all earnings releases for Infosys visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.