Why Is Infosys Stock Is Sliding Today?
Portfolio Pulse from Anusuya Lahiri
Infosys Ltd reported Q2 revenue growth of 3.6% YoY to $4.72 billion, beating the consensus of $4.61 billion. However, the operating margin declined by 30 bps to 21.2%. The company held $4.17 billion in cash and equivalents and clocked a free cash flow of $670 million. The Board announced an interim dividend of ₹18 per share, an increase of 9.1% over last year. Despite this, Infosys cut its FY24 revenue outlook, expecting growth of 1.0% - 2.5% in constant currency, down from the prior 1.0% - 3.5%.
October 12, 2023 | 11:59 am
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Infosys reported better than expected Q2 revenue but cut its FY24 revenue outlook. The operating margin declined and the interim dividend increased by 9.1%.
Infosys reported a strong Q2 revenue, beating consensus, and increased its interim dividend. However, the company cut its FY24 revenue outlook and reported a decline in operating margin. This mixed result could lead to uncertainty among investors, potentially driving the stock price down in the short term.
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IMPORTANCE 80
RELEVANCE 100