Infosys Earnings: Macro-Induced Demand Weakness Continues to Weigh Down Results

We are maintaining our $16 fair value estimate after narrow-moat Infosys closed out its third quarter with financial results below our prior estimates as we still believe revenue will bounce back next year. Similar to their peer, Tata Consultancy Services, which reported on Jan. 11, 2024, Infosys' financials continued to be weighed down by weak customer demand for IT service solutions amid macroeconomic uncertainty. While we reiterate our long-term positive outlook on Infosys, we believe the market is projecting a rosier future for the firm, with shares trading at a slight premium to our fair value estimate.