Global IT services provider Infosys Ltd. (NYSE: INFY) reported a challenging environment in its fiscal third quarter ended Dec. 31, 2023, but CEO and Managing Director Salil Parekh said the company’s performance was “resilient.” Revenue fell 1.0% year over year on a constant currency basis, while gross margin narrowed, according to consolidated results.

The Bengaluru, India-based firm revised guidance for full-year revenue growth in its third-quarter report. It now expects revenue growth in the current fiscal year to be between 1.5% and 2.0%. That compares to a forecast of between 1.0% and 2.5% the company issued in its second-quarter earnings report.

Employee numbers fell to 322,663 in the third quarter from 346,845 in the year-ago quarter, a decrease of 7.0%. However, Parekh pointed to strength in the company’s large deal wins.

“Our performance in Q3 was resilient,” he said. “Large deal wins were strong at $3.2 billion, with 71% of this as net new, reflecting the relevance and strength of our portfolio of offerings ranging from generative AI, digital and cloud to cost, efficiency and automation.”

North American revenue fell 4.9% in constant currency. North America is Infosys’ largest single market, representing 59.0% of total revenue. In Europe, its second-largest market, revenue rose 5.0% in constant currency; Europe represents 28.2% of total revenue.

Looking at revenue by business segment, revenue from financial services firms fell 5.9% in constant currency. Revenue from these companies represents 27.8% of total revenue. Financial services is the company’s largest segment in terms of industry served.

Retail, the company’s second-largest business segment, saw revenue rise 0.4% in constant currency. Retail represents 14.6% of total revenue.

Infosys had 1,872 active clients in the third quarter, up from 1,850 in the third quarter of last year.

The company also announced it acquired InSemi Technology Services Private Ltd., a Bengaluru provider of semiconductor design and engineering research and development services. Cost of the acquisition is up to 2.8 billion Indian rupees (US$33.7 million).

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Share price

Shares in Infosys were up 4.06% to $18.84 today in New York as of 11:52 a.m. Eastern time. They were 3.85% below their 52-week high.