Infosys Share Price Falls Down by 6% as INFY Share Faces Q4 Headwinds
On January 17, Infosys share price was down by as much as 6%, following a similar fall in the stateside operation of its ADRs on the NYSE. Even though the infy share price posted strong, better-than-expected Q3 numbers, the share price came under pressure as investors looked for weakness in Q4. The Infosys share had been stable up until this shift and this dip.
The IT giant has hiked its FY25 revenue growth outlook to 4.5-5% in constant currency, buoyed by revenue deals. However, the analysts’ complacency on the potential of Q4 resulted in turbulence in the Infosys share price. Management admitted to the market’s anticipation of a slower Q4, attributed to furloughs and fewer working days, which remained the INFY share price bogey.
Accompanying other pressures on Infosys share is emerging confusion over the margin consequences of the two-phase wage increase scheme. Although the company assured investors that margins would be under pressure in Q4 FY25 and Q1 FY26, it again failed to provide a figure, which raised more caution among the holders of Infosys stock and forced the INFY share price to slip down.
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