Infosys recently released its financial report for Q4 FY25, revealing a net profit of $814 million, a 11.7% decrease compared to $959 million in the same quarter last year. However, the company's revenue saw a 7.9% year-over-year increase, reaching $4.7 billion. For the full fiscal year, total revenue reached $19 billion, showing a modest 3.9% growth.
At a press conference, Infosys CEO Salil Parekh expressed confidence in generative AI (GenAI). He stated that client demand for AI is growing, shifting from single use cases to comprehensive AI transformation. Parekh revealed that Infosys has developed over 200 AI agents and is collaborating on over 400 AI projects for clients.
Despite the softer Q4 performance, Infosys achieved a 4.2% revenue growth in FY25, with an operating margin of 21.1%, free cash flow of $4.1 billion, and large deal signings totaling $11.6 billion. Parekh stated, "We are pleased with the overall performance."
Looking ahead, Infosys provided revenue growth guidance of 0-3% for FY26, citing market uncertainties. Chief Financial Officer Jayesh Sanghrajka indicated an operating margin guidance of 20%-22%. Infosys plans to hire over 20,000 fresh graduates in FY26, up from 15,000 in the previous fiscal year.
It's noteworthy that the company's attrition rate rose to 14.1% in Q4, compared to 12.6% in the same period last year. The current employee count stands at 323,578, slightly lower than the previous year. Parekh mentioned that attrition is influenced by several factors, including opportunities in Global Capability Centers (GCC).
Infosys is expanding its presence in key markets like the US, Australia, and Japan, particularly in energy, consulting, and cybersecurity. While there have been no large-scale layoffs, Sanghrajka noted that the company's future guidance accounts for potential market deterioration. Despite challenges from salary increases, variable pay, and acquisition costs, the company is seeking to expand profitability margins through pricing, lean automation, and nearshore delivery.
In the AI space, Infosys is scaling its platform efforts, particularly with domain-specific models in financial services. Parekh highlighted the significant interest in AI platforms across telecommunications, banking, financial services, and service companies.
Key Highlights:
🟢 FY25 net profit decreased by 11.7%, revenue increased by 7.9%.
🔵 Developed over 200 AI agents, working on over 400 AI projects.
🟡 Plans to hire over 20,000 fresh graduates in FY26.
