By Nate Wolf
Infosys stock spiked Wednesday after the information-technology consultancy met quarterly earnings expectations and lifted its fiscal-year guidance.
The company, with headquarters in India, posted adjusted earnings of 20 cents a share for its fiscal third quarter, in line with analysts' expectations. Revenue totaled $5.1 billion, up 1.7% from the prior year in constant currency terms and above Wall Street's call for $5.03 billion, according to FactSet.
Infosys raised its guidance for fiscal 2026 revenue growth to 3% to 3.5%, up from a previous forecast of 2% to 3%.
U.S.-listed depositary receipts rose 7.1% to $18.76 on Wednesday, putting the stock on pace for its best day since July 2024, according to Dow Jones Market Data.
"Clients increasingly view Infosys as their AI partner with demonstrated expertise, innovation capabilities and strong delivery credentials," CEO Salil Parekh said in a statement.
Other IT consulting companies rode on the stock's coattails Wednesday. Accenture shares jumped 3.8%, Cognizant Technology Solutions was up 2.5%, and DXC Technology climbed 2.2%.
The industry is in need of some love. Investors have worried that efficiencies from artificial intelligence will reduce the need for consultants. Shares of Infosys, Accenture, and DXC have declined by double digits over the last 12 months.
Infosys, Cognizant, and Indian peer Tata Consultancy Services are also contending with President Donald Trump's September executive order that put a $100,000 fee on H-1B visas. The trio rely heavily on the H-1B program.
Write to Nate Wolf at nate.wolf@barrons.com
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(END) Dow Jones Newswires
January 14, 2026 11:05 ET (16:05 GMT)
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