Here's What Boosted Infosys Limited (INFY) in Q4

Sustainable Growth Advisers (SGA), an investment management company, released its fourth-quarter investor letter for its “Emerging Markets Growth Strategy.” A copy of the letter can be downloaded here. The fourth quarter of 2025 marked strong divergence from the market. Market leadership by AI beneficiaries and revival of cyclical sectors dominated the market, while quality growth strategies faced challenges. In Q4 2025, the portfolio returned 0.8% (Gross) and 0.6% (Net) compared to the MSCI EM Net TR Index return of 4.7% and the MSCI EM Growth Net TR Index return of 3.3%. In 2025, the portfolio delivered strong returns of 23.8% (Gross) and 22.8% (Net) but lagged the 33.6% and 34.3% returns for the indexes, respectively. The portfolio projects 13% revenue growth and 16% earnings growth annually for the next three years. Please review the Strategy’s top five holdings to gain insights into their key selections for 2025.

In its fourth-quarter 2025 investor letter, SGA Emerging Markets Growth Strategy highlighted Infosys Limited (NYSE:INFY) as a notable contributor. Infosys Limited (NYSE:INFY) is an Indian based technology company that provides consulting, technology, outsourcing, and digital services. On February 11, 2026, Infosys Limited (NYSE:INFY) stock closed at $15.76 per share. One-month return of Infosys Limited (NYSE:INFY) was -16.26%, and its shares are down 27.51% over the past twelve months. Infosys Limited (NYSE:INFY) has a market capitalization of $63.76 billion.

SGA Emerging Markets Growth Strategy  stated the following regarding Infosys Limited (NYSE:INFY) in its fourth quarter 2025 investor letter:

"Infosys Limited (NYSE:INFY) was a top contributor during the quarter, driven by steady execution, resilient recurring revenues, and strong performance in large-scale digital transformation projects. The company’s industry-leading operating margins and high client retention supported robust free cash flow generation, while notable contract wins, such as the NHS workforce management solution in the UK, highlighted Infosys’s ability to deliver innovative platforms for global clients. More recently, investor sentiment toward India has cooled due to softening domestic demand, persistent tariff uncertainty, and a rotation of foreign capital into markets more exposed to AI and semiconductor growth. Along with other outsourced IT service providers, Infosys shares have been weak as concerns grew over the potential for these business models to be disrupted by AI amid a softer demand environment. However, in our view, AI deployment in enterprises is not easy, requiring investments in governance, data integrity, and compliance, all tasks which the IT services providers are well positioned to assist with. We trimmed the position to a below-average weight due to valuation considerations."

Infosys Limited (NYSE:INFY) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 29 hedge fund portfolios held Infosys Limited (NYSE:INFY) at the end of the third quarter, compared to 30 in the previous quarter. While we acknowledge the potential of Infosys Limited (NYSE:INFY) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Infosys Limited (NYSE:INFY) and shared a list of best affordable tech stocks to buy. In addition, please check out our hedge fund investor letters Q4 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.