William Blair analyst Maggie Nolan said Infosys' strong pipeline commentary was offset by the cautious outlooks for its financial services and retail segments, which collectively account for about 47% of revenue. While she is positive on the increased traction in the digital business, last quarter's strong revenue growth, and a more proactive investment strategy, she remains skeptical about the near-term potential for its operating margin to reach the high end of management's 21%-23% of revenue guidance. Nolan keeps a Market Perform rating on Infosys shares.

Infosys announced a definitive agreement to acquire in-tech, an Engineering R&D services provider focused on German automotive industry. This strategic investment further strengthens Infosys' Engineering R&D capabilities and reaffirms its continued commitment to global clients to navigate their digital engineering journey. The acquisition is expected to close during the first half of fiscal 2025, subject to customary closing conditions and regulatory approvals.