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What's in the Offing for Infosys (INFY) This Earnings Season?
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Infosys Limited (INFY - Free Report) is scheduled to report first-quarter fiscal 2026 results on Jul 14.
Over the trailing four quarters, the company’s earnings beat the Zacks Consensus Estimate on three occasions and came in line in the other, the average beat being 7.2%.
In the last reported quarter, Infosys’ adjusted earnings of 16 cents per share came in line with the Zacks Consensus Estimate and grew 18% year over year. Revenues of $3.61 billion jumped 13% year on year as well as surpassed the Zacks Consensus Estimate of $3.56 billion.
The Zacks Consensus Estimate for fiscal first-quarter revenues is pegged at $3.70 billion, suggesting an 18.6% increase from the year-ago quarter. The consensus mark for earnings is pinned at 17 cents per share, calling for 30.8% year-on-year growth.
Let’s see how things have shaped up prior to this announcement.
Factors at Play
Infosys’ quarterly performance is likely to have benefited from large deal wins and growth in digital services. The company’s efforts to reinforce the digital-transformation capabilities for expanding and solidifying its position in the highly competitive environment are a steady tailwind.
Infosys had added 130 clients during fourth-quarter fiscal 2021. It also signed multiple large deals of contract value worth $14.1 billion. The TCV recorded during the reported quarter was the highest ever in the company’s history.
Moreover, stellar demand for cloud, data-analytics solutions and services, Internet of Things and security is likely to have driven the company’s quarterly revenues during the quarter to be reported. Also, higher investments by clients in digital transformation, artificial intelligence and automation are anticipated to have been conducive to its fiscal first-quarter performance.
While headwinds in the financial services segment are still a concern, growing traction in the commercial and corporate bank, consumer, cost and payments, wealth management and custody, plus mortgage portfolios of its business is likely to have been a positive during the quarter under review.
Nonetheless, inflated investments in sales and localization, and rising costs to grab large deals might have hurt Infosys’ bottom-line numbers during the quarter under discussion.
What Our Model Says
Our proven model predicts an earnings beat for Infosys this season. The combination of a positive Earnings ESP, and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), increases the chances of an earnings beat. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.
Infosys has an Earnings ESP of +2.59% and carries a Zacks Rank of 3, at present.
Other Stocks With Favorable Combinations
Here are some companies, which, per our model, have the right combination of elements to post an earnings beat this quarter:
Image: Bigstock
What's in the Offing for Infosys (INFY) This Earnings Season?
Infosys Limited (INFY - Free Report) is scheduled to report first-quarter fiscal 2026 results on Jul 14.
Over the trailing four quarters, the company’s earnings beat the Zacks Consensus Estimate on three occasions and came in line in the other, the average beat being 7.2%.
In the last reported quarter, Infosys’ adjusted earnings of 16 cents per share came in line with the Zacks Consensus Estimate and grew 18% year over year. Revenues of $3.61 billion jumped 13% year on year as well as surpassed the Zacks Consensus Estimate of $3.56 billion.
The Zacks Consensus Estimate for fiscal first-quarter revenues is pegged at $3.70 billion, suggesting an 18.6% increase from the year-ago quarter. The consensus mark for earnings is pinned at 17 cents per share, calling for 30.8% year-on-year growth.
Infosys Limited Price and Consensus
Infosys Limited price-consensus-chart | Infosys Limited Quote
Let’s see how things have shaped up prior to this announcement.
Factors at Play
Infosys’ quarterly performance is likely to have benefited from large deal wins and growth in digital services. The company’s efforts to reinforce the digital-transformation capabilities for expanding and solidifying its position in the highly competitive environment are a steady tailwind.
Infosys had added 130 clients during fourth-quarter fiscal 2021. It also signed multiple large deals of contract value worth $14.1 billion. The TCV recorded during the reported quarter was the highest ever in the company’s history.
Moreover, stellar demand for cloud, data-analytics solutions and services, Internet of Things and security is likely to have driven the company’s quarterly revenues during the quarter to be reported. Also, higher investments by clients in digital transformation, artificial intelligence and automation are anticipated to have been conducive to its fiscal first-quarter performance.
While headwinds in the financial services segment are still a concern, growing traction in the commercial and corporate bank, consumer, cost and payments, wealth management and custody, plus mortgage portfolios of its business is likely to have been a positive during the quarter under review.
Nonetheless, inflated investments in sales and localization, and rising costs to grab large deals might have hurt Infosys’ bottom-line numbers during the quarter under discussion.
What Our Model Says
Our proven model predicts an earnings beat for Infosys this season. The combination of a positive Earnings ESP, and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), increases the chances of an earnings beat. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.
Infosys has an Earnings ESP of +2.59% and carries a Zacks Rank of 3, at present.
Other Stocks With Favorable Combinations
Here are some companies, which, per our model, have the right combination of elements to post an earnings beat this quarter:
Avnet, Inc. (AVT - Free Report) has an Earnings ESP of +4.98% and currently carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Apple Inc. (AAPL - Free Report) has an Earnings ESP of +2.60% and carries a Zacks Rank #2, at present.
Texas Instruments Incorporated (TXN - Free Report) has an Earnings ESP of +1.60% and holds a Zacks Rank of 2 currently.