Shares of Infosys Ltd’s American Depositary Receipts (ADR) declined sharply on the New York Stock Exchange (NYSE), falling 4.01% to $15.92 as of 19:10 EDT, following a weaker-than-expected Q4FY25 earnings report.

The Indian IT services major reported a 12% year-on-year decline in consolidated net profit to ₹7,033 crore for the quarter ended March 2025. The bottom-line performance fell short of analysts’ expectations, signaling pressure on margins and slower revenue growth in a challenging macroeconomic environment.

Investors reacted swiftly to the results, sending the ADRs lower during US trading hours. The earnings miss reflects broader industry headwinds, including muted discretionary spending from global clients and delays in decision-making cycles—particularly across BFSI and retail verticals.

This performance comes at a time when IT majors are facing margin compression due to rising costs and client hesitancy in large-scale deal signings. Infosys’ management commentary and forward-looking guidance will be closely watched for cues on demand recovery and margin levers in FY26.

With peers expected to announce results in the coming days, all eyes are now on sector trends and deal pipelines to gauge how India’s second-largest IT firm plans to navigate the tough operating landscape.