Company: INFY
Filing Date: 2025-07-01
Form Type: 20-F
Source: 0000950170-25-091925
Chunk: 13

Company: Infosys Ltd
Filing Date: 2025-07-01
Form: 20-F
Item: Item 3
Chunk 13
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 disclosure of sensitive information, deliberate misuse, or infringement of third-party IP rights. In the event of such adverse circumstances, our reputation could be harmed, and we could be exposed to legal liability or regulatory risk.

Evolving AI laws and regulations, such as the EU AI Act and the laws of various jurisdictions, which may conflict with one another, can impact our AI integration and business and create compliance challenges. Non-compliance, actual or perceived, may lead to fines, investigations, lawsuits, remediation costs, and reputational damage. Integrating AI into our products or their use in AI applications may also trigger increased regulatory scrutiny, litigation, IP, confidentiality, privacy, security, and ethical risks, harming our business.
We may be unable to recoup investment costs incurred in developing our software products and platforms.

The development of our software products and platforms requires significant investments. The markets for our suite of software products and platforms are competitive. Our current software products and platforms or any new software products and platforms that we develop may not be commercially successful and the costs of developing such new software products and platforms may not be recouped. Since software product and platform revenues typically occur in periods subsequent to the periods in which the costs are incurred for the development of such software products and platforms, delayed revenues may cause periodic fluctuations in our results of operations.

We may engage in acquisitions, strategic investments, strategic partnerships or alliances or other ventures that may or may not be successful.

We have in the past, and may in the future, seek to acquire or make strategic investments in complementary businesses, new and emerging technologies, services or products, or enter into strategic partnerships or alliances with third parties in order to enhance our business.

It is possible that we may not be able to identify suitable acquisition targets, candidates for strategic investment or strategic partnerships, or if we do identify suitable targets, we may not complete those transactions on terms commercially acceptable to us. Our inability to identify suitable acquisition targets or investments or our inability to complete such transactions may affect our competitiveness and growth prospects.
Even if we are able to identify an acquisition that we would like to consummate, we may not be able to complete the acquisition on commercially reasonable terms or the target may be acquired by another company. Furthermore, in the event that we are able to identify and consummate any future acquisitions, we could:
•issue equity securities which would dilute current shareholders’ percentage ownership;
•incur substantial debt;
•incur significant acquisition-related expenses;
•assume contingent liabilities; or
•expend significant cash.