India's Infosys narrows annual forecast helped by banking and financial unit strength
BENGALURU (Reuters) -India's Infosys narrowed its full-year forecast on Wednesday after reporting stronger-than-expected revenue for the first quarter, driven by growth in its financial services segment.
The Bengaluru-based software services company narrowed its annual revenue growth forecast to 1%–3% from a prior range of flat to 3%- in line with analyst expectations for a lift in the lower end.
Consolidated sales rose 7.5% year-on-year to 422.79 billion rupees ($4.89 billion) in the June quarter, while analysts, on average, expected revenue of 418.06 billion rupees, as per data compiled by LSEG.
Revenue from Infosys' banking and financial services segment rose for the fifth consecutive quarter, helped by marquee deal wins including Bank of Sydney, Metro Bank, and U.K.-based AIB.
Net profit rose 8.7% in three-month period to 69.21 billion rupees.
Analyst had expected 67.55 billion rupees, as per data compiled by LSEG.
Analysts have said that U.S. President Donald Trump easing some tariff restrictions, along with global interest rate cuts by central banks, could boost India's $283-billion IT industry, where the banking and financial services segment contributes about a third of total revenue.
Net new bookings rose $3.8 billion during the quarter, compared with $2.6 billion in the previous quarter and $4.1 billion in the year-ago period.
Infosys also retained its operating margin forecast at 20-22% for FY26.
Earlier this month, bellwether Tata Consultancy Services missed revenue estimates and flagged delays in decision making and project starts.
Smaller rivals and Tech Mahindra fared better than large caps on account of higher deal wins and better margin.
Shares listed in Mumbai closed 0.8% higher ahead of the results.
($1 = 86.3880 Indian rupees)
(Reporting by Sai Ishwarbharath B ; Editing by Nivedita Bhattacharjee)
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