INFYNEUTRAL

INFY Return on Equity (ROE) Analysis

31.4%

Higher than 77% of Technology sector peers

Updated 312h ago·SEC filings & market data

Key Takeaway

Return on Equity (ROE) measures how efficiently a company generates profit from each dollar of shareholders' equity; INFY’s current 31.4% means it earns $0.314 for every $1 of equity.

Sector Performance

77th percentile

INFY

31.4%

Sector Median

6.8%

Sector Avg

-3.9%

Prior Period

33.9%(May 2026)

↓ Declining

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Deep Analysis

Return on Equity (ROE) measures how efficiently a company generates profit from each dollar of shareholders' equity; INFY’s current 31.4% means it earns $0.314 for every $1 of equity.

This is well above the Technology sector median of 8.2%, placing INFY in the 77th percentile among sector peers. While year-over-year change is not available, the quarter-over-quarter change shows a decline of 7.4%, and the most recent two quarterly values are 31.4% and 33.9%. The combination of a very high ROE level with a recent decline suggests the company remains highly profitable relative to peers, but the downward trend introduces caution about sustained performance. This mixed picture aligns with the overall NEUTRAL verdict: the superior efficiency supports the stock’s valuation, but the weakening quarter-over-quarter trend prevents a more bullish stance.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about INFY?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

How does INFY's Return on Equity (ROE) compare to its sector?

INFY's Return on Equity (ROE) of 31.4% compares to a Technology sector median of 6.8%, placing it in the 77th percentile.

Who are INFY's closest peers by Return on Equity (ROE)?

The closest Technology peers by Return on Equity (ROE) include: AKAM (9.1%), ANSS (9.5%), QRVO (10.1%), ARM (10.9%), ACLS (11.6%).

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Learn More About Return on Equity (ROE)

What Is Return on Equity (ROE) and Is Higher Always Better?

Return on equity ROE measures how efficiently a company generates profit from shareholder capital. Learn how to decompose ROE using DuPont analysis and why high leverage can make it dangerous—with Apple and JPMorgan examples.

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.