Infosys Limited (NSE:INFY) Third-Quarter Results Just Came Out: Here's What Analysts Are Forecasting For Next Year

It's been a good week for Infosys Limited (NSE:INFY) shareholders, because the company has just released its latest third-quarter results, and the shares gained 5.2% to ₹1,613. Results were roughly in line with estimates, with revenues of US$4.7b and statutory earnings per share of US$0.18. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for Infosys

Taking into account the latest results, the most recent consensus for Infosys from 46 analysts is for revenues of US$20.1b in 2025. If met, it would imply a meaningful 8.4% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to swell 15% to US$0.82. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$20.1b and earnings per share (EPS) of US$0.82 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

The analysts reconfirmed their price target of ₹1,657, showing that the business is executing well and in line with expectations. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Infosys at ₹2,000 per share, while the most bearish prices it at ₹1,160. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Infosys' past performance and to peers in the same industry. We would highlight that Infosys' revenue growth is expected to slow, with the forecast 6.6% annualised growth rate until the end of 2025 being well below the historical 11% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 8.3% annually. Factoring in the forecast slowdown in growth, it seems obvious that Infosys is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Infosys analysts - going out to 2026, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 2 warning signs for Infosys that you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.