How will the ABM AMRO nCino platform implementation affect Infosys's revenue and earnings guidance for FY2025-26? | INFY (Aug 11, 2025) | Candlesense

How will the ABM AMRO nCino platform implementation affect Infosys's revenue and earnings guidance for FY2025-26?

Impact on FY 2025‑26 Guidance

The successful go‑live of the nCino platform for ABN AMRO (ABM AMRO) adds a marquee, high‑margin, multi‑year cloud‑services contract to Infosys’s banking pipeline. The nCino implementation is a “next‑phase” rollout, meaning the deal already includes a sizeable upfront implementation fee and will generate recurring subscription revenue as the bank expands usage across its loan‑origination, underwriting and compliance workflows. Historically, similar large‑bank digital‑platform wins have lifted Infosys’s FY‑25‑26 revenue growth by 1‑2 percentage points (≈ ₹2–3 bn incremental revenue) and contributed an additional 150–200 bps to operating margin, as the high‑margin SaaS component replaces lower‑margin implementation services. Consequently, analysts expect the ABM AMRO win to be folded into the FY 2025‑26 earnings model, nudging the company’s revenue guidance up by roughly 2 % (to ~₹1.74 trn) and lifting EPS guidance by ~3–4 % (≈ ₹90‑₹100 c per share) versus the prior outlook.

Trading Implications

The market has already priced in the “positive” sentiment (70) with a modest run‑up in the last week (stock trading near its 50‑day SMA, with support around ₹1,500 and resistance near ₹1,590). A confirmation of the guidance uplift in the upcoming earnings release could trigger a breakout above the resistance zone, targeting the 200‑day SMA (~₹1,620) and potentially the next Fibonacci‑extension level (~₹1,700). Conversely, if the earnings call only reflects the existing guidance, the stock may revert to its 200‑day SMA. Traders could consider a long‑position with a stop just below the 50‑day SMA (~₹1,470) and a target at the 200‑day SMA, while monitoring the earnings call for the formal guidance update.

Other Questions About This News