Investing.com — Infosys Ltd (NYSE:INFY) sees stronger revenue growth amid signs of rising discretionary spending in North America and an improving demand environment. The company reported more than 7% rise in quarterly revenue, driven by robust deal wins and an increase in headcount.
India’s second-largest IT services provider, posted revenue of ₹417.64 billion ($4.83 billion), a 7.6% rise, for the October-December quarter, traditionally a weak period as clients scales back operations during the holiday season.
Bengaluru-based Infosys now projects full-year revenue growth of 4.5% to 5%, up from its previous guidance of 3.75% to 4.5%.
“Stronger than expected revenue growth in 3Q, upgrade to F25 revenue guide and improved deal wins/net headcount increase in 3Q are the key positives,” Morgan Stanley (NYSE:MS) said in a note. The brokerage has an overweight rating on the stock, with a target price of ₹2,150.
“We believe bears can allude to higher component of third-party items driving the revenue beat during 3Q,” Analyst at Morgan Stanley added.
India’s IT services industry has grappled with a slowdown in recent years, as clients in the U.S. and Europe curbed technology spending amid economic uncertainties.