Infosys slips after ADR stumble. Is caution creeping in?

Infosys is having a rough week. After its US-listed ADRs took a 4 per cent hit overnight, the stock slipped on domestic bourses too, down over 1 per cent today (July 11, 2025). And this isn’t a one-off blip. The mood around India’s second-largest IT exporter has been turning cautious, and investors are beginning to ask: Is the optimism overdone?

So, what’s happening?

The stock has underperformed recently. Infosys’ ADRs have been on a steady slide and are now trading over 20 per cent below their 52-week high. The NSE-listed shares followed suit, falling to around Rs 1,617 this week.

Blame it on a cocktail of factors: Cautious guidance, sluggish revenue growth and broader pressure on IT services stocks following TCS’s muted numbers.

Why the market is worried

Here’s what’s spooking investors:

• Soft FY26 outlook: Infosys expects just 1-3 per cent revenue growth this year. That’s slower than what the Street hoped for — and a clear sign that client spending isn’t bouncing back quickly.
• Earnings miss: In Q4 FY25, Infosys posted an 11.8 per cent drop in net profit. Revenue growth came in at 7.9 per cent, but missed analyst estimates.
• ADR decline: The stock’s global performance is mirroring the nervousness around outsourcing demand in key markets like the US and Europe.

About the company

One of India’s most recognisable IT brands, Infosys builds and manages technology systems for global businesses — from cloud migration and AI platforms to core banking and digital transformation. Its clients include everything from banks and insurers to retailers and manufacturers. In short, Infosys is a proxy for global tech spends.

Value Research Online ratings

• Overall: 4/5
• Quality: 10/10
• Growth: 7/10
• Valuation: 5/10
• Momentum: 2/10

The takeaway

Infosys isn’t broken — but it’s not booming either. In a sector where expectations run high and patience runs thin, even a temporary slowdown can rattle the bulls. Keep an eye on growth cues, client commentary, and deal momentum. The big story might still play out — just not at full throttle.

Serious about wealth? So are we.

Join thousands of smart investors who rely on Value Research Stock Advisor for expert-picked stocks, time-tested strategies and long-term discipline.

Stop guessing. Start growing. Check it out now: Value Research Stock Advisor.

Disclaimer: This is not a stock recommendation. This story was created with the assistance of artificial intelligence and has been reviewed by human experts for accuracy and is intended for informational purposes only. Please take it with a pinch of salt and do your own research or consult a financial advisor before making investment decisions.