Shares of Infosys Ltd. (INFY, 500209) dropped 7.2% in premarket trading on Thursday following the release of its fiscal first-quarter earnings report. The India-based digital services and consulting company reported a net income of $724 million, or 17 cents per share, for the quarter ending June 30. While this represents an increase from the $689 million, or 16 cents per share, reported in the same period last year, it fell short of the FactSet consensus of 18 cents per share.
Revenue, on the other hand, grew by 3.9% to reach $4.62 billion, surpassing the FactSet consensus of $4.59 billion. Infosys highlighted the expansion of its generative artificial intelligence (AI) capabilities, citing 80 active client projects.
Looking ahead, Infosys revised its revenue growth outlook for fiscal 2024. It now expects growth to be between 1.0% and 3.5% in constant currency, compared to the previous guidance of 4% to 7%.
Over the past three months, Infosys’ stock has surged by 19.3%. In comparison, the iShares MSCI India exchange-traded fund (INDA) has seen a rally of 12.0%, while the S&P 500 has gained 10.6%.
