Shares in Infosys (NASDAQ:INFY) fell 5.8% in New York on Thursday after the IT consultancy multinational turned in fiscal third-quarter results that showed slower sales growth but a slight improvement in margins.
The India-headquartered giant, among the top 150 companies on the NYSE, revealed US$4.9 billion of revenue for the the three months to December, up 1.7% on the preceding quarter and 6.1% compared to a year earlier.
This quarter-on-quarter growth was slower than the 3.1% and 3.6% shown in the previous two quarters.
CEO Salil Parekh said the overall performance was "broad-based", highlighting that operating margin strengthened to 21.3% from 21.1% in the second quarter.
Free cash flow for Q3 was also the most ever for the company at $1.3 billion, growing 90% year on year, while total contract value of large deal wins was $2.5 billion.
"Our strong revenue growth sequentially in a seasonally weak quarter and broad-based year on year growth, along with robust operating parameters and margins, is a clear reflection of the success of our differentiated digital offerings, market positioning, and key strategic initiatives," said Parekh.
"We continue to strengthen our enterprise AI capabilities, particularly focusing on generative AI, which is witnessing increasing client traction.
"This has led to another quarter of strong large deal wins and improved deal pipeline giving us greater confidence as we look ahead."