Infosys Earnings: Customer Discretionary Spending Remains Impacted as Macro Uncertainty Persists

We are maintaining our $16 fair value estimate for narrow-moat Infosys after the firm closed out fiscal 2024 with financial results and guidance reflecting the weak demand landscape as companies rethink their IT spending during a period of macroeconomic uncertainty. While the near-term picture remains murky, we reiterate our confidence in Infosys’ long-term opportunity as secular tailwinds such as digital transformations, cloud migrations, and increased usage of AI stand to drive demand for IT services vendors. With shares trading down sharply after the firm reported earnings, we view Infosys’ shares as fairly valued.