Infosys wins deal with Knorr-Bremse amid slow growth

On August 18, Infosys announced a long-term contract to manage the enterprise software of German braking systems manufacturer Knorr-Bremse AG. The mandate covers enterprise resource planning, data platforms, and product lifecycle tools across both divisions of Knorr-Bremse, running on Infosys Topaz, the company's artificial intelligence suite. The companies did not disclose the financial value of the contract.

The contract follows financial results published on July 23 for the quarter ended June 30. During that period, large deal wins totaled $3.6 billion, with net new contracts accounting for 61% of the total. Artificial intelligence represented 8.2% of overall revenue. Revenue grew 2.4% year-over-year in constant currency and 1.0% sequentially. Management updated its FY27 revenue growth guidance to a range of 1.5% to 3.0%.

Infosys delivered an operating margin of 21.1%, an improvement of 0.2 percentage points over the prior quarter and within its full-year guidance range of 20% to 22%. Free cash flow reached $955 million, representing 116.5% of net profit. Earnings per share rose 14.9% in rupee terms, while basic EPS in US dollars increased 3.7% to $0.20 as the CFO described the operating environment as challenging.

Institutional ownership showed 71 hedge funds holding shares, up from 63 in the previous quarter. Short interest stood at 3.70% of the public float. As of September 18, Infosys traded at a forward price-to-earnings ratio of 13.37.