The American Depositary Receipts of Infosys Ltd. sank 4.6% to trade at $15.82 in New York on Thursday after the company missed its revenue guidance for the financial year gone by and projected slower sales for fiscal 2026.
ADRs are securities issued by a US bank that represent ownership in shares of a foreign company. These securities are denominated in dollars and traded in US markets.
Infosys missed its full-year guidance of 4.5-5% in fiscal 2025. The actual revenue growth figure for the financial year 2024-25 stood at 4.2%.
Chief Financial Officer Jayesh Sanghrajka explained that two-third of this decline was on the back of lower third party cost and revenue.
The missed fiscal 2025 guidance, despite a mid-year increase, raises concerns about future performance that contributes to the negative reaction in the ADR.
In this backdrop, Infosys has guided for only 0-3% topline growth in fiscal 2026.
In the fourth quarter, Infosys' net profit rose 3% sequentially to Rs 7,033 crore in the quarter ended March 31, 2025, which is higher than the Rs 6,697-crore estimate shared by analysts tracked by Bloomberg.
The revenue declined 2% over the previous three months to Rs 40,925 crore in the March quarter. This is compared to the Rs 42,126-crore consensus estimate of analysts tracked by Bloomberg.
Before the quarterly results were declared, shares of Infosys closed 0.45% higher at Rs 1,419.5 apiece on the NSE, against a 1.77% advance in the benchmark index Nifty 50.
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