Infosys Ltd.'s American Depository Receipts (ADRs) fell nearly 6% in pre-market trading in New York on Thursday after India's second-largest IT services company reported June quarter earnings and narrowed the upper end of its fiscal 2027 revenue growth guidance.
At around 5:50 pm IST, the Infosys ADR was down 5.86% at $10.29 in pre-market trading.
An American Depository Receipt (ADR) is a negotiable certificate issued by a US bank that represents shares of a foreign company, enabling them to trade on US stock exchanges.
The decline followed Infosys' decision to lower the upper end of its fiscal 2027 revenue growth guidance to 3% from 3.5%, while retaining the lower end of the guidance.
The IT behemoth posted a consolidated bottom-line of Rs 7,769 crore, compared to Rs 8,501 crore in the fourth quarter of the previous fiscal. Dalal Street analysts estimated a profit of Rs 7,774 crore. This marked the company's second-steepest sequential decline in profit over the past eight quarters.
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Revenue rose 3.9% to Rs 48,211 crore from Rs 46,402 crore in the preceding quarter, in-line with estimates of Rs 48,222 crore. Earnings before interest and taxes rose 4.3% to Rs 10,163 crore from Rs 9,743 crore and EBIT margin expanded 9 basis points to 21.08% from 20.99%.
Alongside its earnings announcement, Infosys said its board has approved the appointment of Ashiss Kumar Dash as CEO-designate. He will assume the roles of Chief Executive Officer and Managing Director from April 2027.
Infosys posted a 1% quarter-on-quarter constant currency revenue growth in the June quarter, with CEO Salil Parekh saying the company continued to see strong momentum in artificial intelligence-led work despite an uncertain macroeconomic environment. AI services contributed 8.2% of the company's Q1 revenue, while AI-related revenue continued to grow at a double-digit sequential pace, he said.
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