Infosys ADRs jump nearly 10% as FY26 growth guidance raised, deal wins surge

Infosys Ltd’s American Depositary Receipts (ADR) surged sharply in early New York trade on Wednesday, January 14, after India’s second-largest IT services exporter raised its constant-currency revenue growth outlook for FY26, signalling an improved demand environment after several muted quarters for the global technology services sector.

The ADR climbed nearly 10% to around $19.20 on the NYSE as investor sentiment improved following the management’s decision to lift full-year growth guidance to 3–3.5% in constant currency terms, up from the earlier 2–3% band.

The development comes at a time when large-cap Indian IT companies continue to operate in an environment of cautious client spending, delayed decision-making and margin pressures from regulatory and wage-related costs.

For the December quarter, Infosys reported sequential constant-currency revenue growth of 0.6%, beating Street expectations of flat growth.

Infosys Q3 net profit

declined 9.7% quarter-on-quarter to ₹6,654 crore, primarily due to a one-time impact of ₹1,289 crore linked to new labour code provisions.

Infosys EBIT margin slipped marginally to 20.8% from 21% in the previous quarter, though the company reiterated its full-year margin guidance of 20–22%, suggesting limited downside risk ahead.

A key positive for investors was the sharp rebound in deal activity. Infosys reported large deal wins of $4.8 billion in the quarter, up from $3.1 billion sequentially, with 57% coming from net new contracts, aided by a sizeable engagement in the UK’s National Health Service.

The company also stepped up hiring, with headcount rising for the second consecutive quarter to an 11-quarter high, even as attrition eased to 12.3%.