Infosys ADRs Slide As Constant Currency Growth, Large Deal Wins Taper In Q2
Infosys ADR sank 2.95% to trade at $15.96 after the company's Q2 results.
The American Depositary Receipts of Infosys Ltd. sank 2.95% to trade at $15.96 in New York on Thursday after the company saw its second quarter constant currency growth tapering to 2.2%. In addition, the large deal contract value also saw a decline in the quarter ended September.
ADR is a tool for foreign companies or organisations to trade on US stock markets, just like regular shares of US companies. In theory, an ADR is similar to a special certificate issued by a US bank.
The IT giants' quarter-on-quarter revenue growth in constant currency stood at 2.2%, lower than the 2.6% in the first quarter.
Similarly, the large deal total contract value came in at $3.1 billion in the September quarter, down from $3.8 billion in the preceding June quarter. The net new deals accounted for 67% of the total TCV.
However, Infosys' net profit rose 6% quarter-on-quarter to Rs 7,364 crore, beating analysts' expectations. Revenue of the Bengaluru-based largest IT services firm rose 5.2% over previous quarter to Rs 44,490 crore.
The company now expects its revenue for the financial year ending March 2026 to rise by around 1-3%, as compared to the previous forecast of 0-3% growth. However, the margin guidance has been retained at 20–22%.
Wipro ADR Flat
The ADRs of Wipro — the other IT major which declared its Q2 results on Thursday — was flat after it opened 1.51% lower. As of 9:58 EDT, Wipro ADR was down 0.36% at $2.73. This comes after the company met street expectations.
Wipro logged a consolidated net profit of Rs 3,246.2 crore, as against Rs 3,330.4 crore in the preceding quarter. This was in line with the estimate of Rs 3,279 crore, as projected by the analysts tracked by Bloomberg.
The company expects revenue from its IT services business to be in the range of $2,591 million to $2,644 million for the third quarter of FY26, reflecting a sequential growth guidance of 0.5% to 1.5% in constant-currency terms.
This comes after a sequential uptick of 0.3% in constant-currency revenue during the second quarter.
Despite the subdued top-line outlook, Wipro reported robust growth in deal wins, offering some comfort to investors. Total booking stood at $4,688 million, up 6.1% from the previous quarter and up 30.9% year-on-year in constant currency.
Notably, large deal wins surged 6.7%, reaching $2,853 million in comparison to the last quarter, and it was up 90.5% in year-on-year.
