Infosys Q3 results: Why Infosys share may open lower after Infosys ADR price crash on NYSE? | Stock Market News

Infosys share price is expected to open with a downside gap on Friday as indicated by the IT giant’s American Depositary Receipt (ADR) listed on New York Stock Exchange (NYSE). Infosys ADR closed 5.77% lower at $21.57 on January 16, after the company reported its Q3 results.

The decline in Infosys ADR price suggests the likelihood that Infosys shares will open on weak note when the Indian stock market opens for trading on January 17.

American Depositary Receipts (ADR) are a tool for foreign companies to trade on US stock markets, just like the regular shares of US companies. Also, in theory, an ADR is similar to a special certificate issued by a US bank.

“Infosys ADR price witnessed heavy selling pressure on the NYSE after the announcement of Q3 results 2025. This signals that US stock investors have thumbed down the Infosys Q3 results, and hence, the trend is expected to happen in the Indian stock market during Friday morning deals. The IT stock is expected to open with a downside gap,” said Anshul Jain, Head of Research at Lakshmishree Investment and Securities.

Infosys Q3 Results

Infosys, India’s second-largest software services provider, reported 4.6% rise in its net profit at ₹6,806 crore for the quarter ended December 2024 from ₹6,506 crore in the previous quarter. The IT major’s revenue in Q3FY25 grew 2% to ₹41,764 crore from ₹40,986 crore, QoQ. USD revenue was at $4,939 million, while in constant currency terms, revenue growth was 1.7% QoQ. EBIT increased 3% QoQ to ₹8,912 crore, while EBIT margin improved by 20 bps QoQ to 21.3%.

Infosys raised its CC revenue growth guidance for FY25 to 4.5% – 5% as against its previous guidance of 3.75% – 4.5%. It retained the operating margin guidance of 20% – 22% for FY25.

Infosys Q3 Results Review

According to Dipeshkumar Mehta, Senior Research Analyst at Emkay Global Financial Services, Infosys reported better than expected revenue growth in Q3.

“Demand is stable in other industries, with cost optimization driving the spends. Infosys has upped FY25 revenue growth guidance for the 3rd consecutive quarter to 4.5-5% (3.75-4.5% earlier). However, this implies sequential decline of 2.5% to 0.6% in Q4, negatively impacted by seasonality of pass-through revenue and lesser working days. We tweak FY25-27E EPS by less than 1%, factoring in the Q3 performance,” said Mehta.

Emkay Global retained a ‘Buy’ rating on Infosys shares with a target price of ₹2,150 apiece at 28x Dec-26E EPS.

Sagar Shetty, Research Analyst, StoxBox, noted that Infosys reported healthy financials in Q3FY25, surpassing street estimates across all fronts.

“The company recorded impressive revenue growth, led by comprehensive growth across segments, offsetting the seasonal impact. The robust recovery in the BFSI segment was a key highlight during the quarter. An uptick in margins was primarily attributed to benefits from improving realization and scale. Strong emphasis on cash flow management resulted in a free cash conversion to net profits of 157% in Q3, with free cash generation for 9MFY25 surpassing FY24. The notable revision of revenue growth guidance to 4.5-5% from 3.75-4.5% reflects an increase on both ends of the range scale, underscoring a potential bounce back in growth momentum,” Shetty said.

TCV stood at $2.5 billion, down 22% YoY, however, the company remains confident going ahead, backed by an improved deal pipeline. The management’s view on the discretionary spending, deal conversion outlook, and commentary on deal wins and pipeline going ahead would be key to gauging changes in the dynamics of the demand environment, he added.

On Thursday, Infosys shares ended 1.21% lower at ₹1,926.20 apiece on the BSE.

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