Infosys Ltd. (NYSE: INFY), a global IT services company, increased its revenue guidance for its fiscal 2025 year today when it reported first-quarter results. The Bengaluru, India-headquartered company now believes full-year fiscal 2025 revenue will grow between 3% and 4% on a constant-currency basis. The earlier forecast was for 1% to 3% growth. Infosys' prediction arrives on the heels of the company posting revenue growth 2.5% higher in constant currency terms in its June 30-ended fiscal first quarter. North American revenue dipped 1.2% from year-ago levels in the first quarter but continued to account for 60.8% of the company's overall revenue. In contrast, revenue grew 9.1% in Europe and 2.3% in the rest of the world. In India, revenue grew 19.9%. Infosys also registered 34 large deal wins in the quarter — a new high for the company — with a total contract value of $4.1 billion.

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Number of employees declined to 315,332 in the first quarter from 317,240 in the fourth quarter of the 2024 fiscal year. In the first quarter, the company finalized its acquisition of in-tech, a Germany-based engineering research and development service provider. In-tech caters to the automotive, rail transport and other industries.

Revenue in the October-December period rose 7.6% to 417.64 billion rupees ($4.83 billion), beating the analysts' average estimate of 412.78 billion rupees, data compiled by LSEG showed. "The encouraging numbers aside, Infosys's results show significant positives, including the continued focus on large deals and strategic cost-takeout engagements," said Gaurav Parab, an analyst at tech research firm NelsonHall. Parab also found Infosys's comments on Agentic AI, a technology that powers AI agents or bots, "encouraging". Improved demand from U.S. clients helped all eight business segments at Infosys post higher growth, with its mainstay financial services arm notching 6.1% revenue growth.

"We are seeing an improvement in the retail and consumer product industry in the U.S. with discretionary challenges easing," CEO Salil Parekh said in a press conference. The company expects its annual revenue to rise by 4.5%-5%, up from its prior outlook of 3.75%-4.5%. The U.S. inflation outlook and the Federal Reserve's planned rate cuts also suggest that the U.S. market will "remain strong", Parekh added. Infosys, which also topped analyst estimates for revenue and profit in the third quarter, reported a rise in North American revenue after five quarters. That market accounts for 60% of its total revenue.