Infosys 4000-word in-depth research report

$Infosys(INFY.US) After researching Infosys, the key finding is: This global IT services leader has built sustainable competitiveness in a fragmented but stable industry, leveraging its engineer dividend and robust financials.

🎯 Core logic: The global IT services market is fragmented (CR5 ~35%) with stable demand (enterprise digitalization necessity) but slow growth (5%-7% annually). Its business model uses engineer-hour services as a "cash cow," supplemented by value-added proprietary products like Finacle; core moats include India's low-cost scalable engineer pool, global delivery network, and complex project experience. Risks lie in cloud/AI tech disruption and geopolitical impacts on outsourcing.

📈 Financial highlights: ROE consistently 27%-32% for five years (FY2025: 29.03%), outstanding shareholder returns. Gross margin dipped from 33.98% to 30.46% (FY2025) but remains above peers; net margin stable at 16%+ (FY2025: 16.39%) with strong cost control. Ultra-sound financial structure: Debt-to-equity 35.39% (<40%), current ratio 2.25 (>2.0), cash reserves $3.2B. Ample FCF at $4.2B in FY2025 (130% of net profit), cash conversion ratio 1.4x, high earnings. Growth stabilizing: FY2025 revenue/net profit up 3.88%/5.98%, FY2026Q1 revenue +4.82%, entering steady-growth phase.