Infosys American Depository Receipts (ADRs) slipped around 8% before the opening bell on Friday, October 23 after the IT giant declared second quarter results and cut revenue guidance.
The drop in ADRs come as the company has trimmed revenue growth guidance to 1-2% in constant currency (CC) terms from the earlier 1.5-3%, while its retail and hi-tech clients remain weak amid discretionary spending cuts and project ramp-downs and slowdowns. H2 margins face compensation-related headwinds, while pricing pressure is expected to persist. Margins declined 10 bps QoQ in Q2.
Meanwhile, the CFO flagged softer volumes and pricing pressure across client segments. Additonally, AI deals are driving growth but are also leading to growth compression.
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(This is a developing story.)
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