Infosys Stock Falls Amid Trump's Proposed $100,000 H-1B Visa Fee Plan

Infosys stock fell 4.5% after reports that President Trump plans to sign a proclamation requiring a $100,000 fee for H-1B visa applications. The proposed H-1B fee aims to curb program abuse and impact business models of technology consulting companies that rely heavily on the visa program. Cognizant Technology and Accenture also saw share prices fall following the announcement. The proposed fee increase could impact operational strategies and profitability margins of major companies.

President Trump is expected to sign a proclamation requiring a $100,000 fee for H-1B visa applications, a significant increase from the current fee structure. This move aims to curb perceived abuses of the visa program and could have substantial implications for tech consulting firms heavily reliant on foreign skilled workers.

The proposed fee, which could be announced as early as Friday, would represent a dramatic escalation in the application costs for H-1B visas, traditionally used to hire skilled foreign workers, primarily from India and China. Companies like Amazon, Microsoft, and Meta are among the top users of the program. The news of the planned fee sent a chill through the market, with shares of Cognizant Technology Solutions Corp, Infosys, and Wipro falling significantly.

Infosys (NYSE:INFY) stock fell as much as 4.5% on Friday following the report. Cognizant Technology (NASDAQ:CTSH) dropped 4.3%, and Accenture (NYSE:ACN) fell 1.3%. These companies, along with other major users of the H-1B visa program, face potential operational cost increases and logistical challenges due to the proposed fee.

The H-1B visa program has long been a contentious political issue, with supporters arguing that it is essential for filling talent gaps and keeping American companies competitive, while critics contend that it allows companies to suppress wages and hire foreign workers over qualified Americans.

Wipro Ltd, a major player in the IT services sector, faces potential operational cost increases due to its reliance on the H-1B program. Despite this, Wipro maintains strong financial health with robust profitability and balance sheet metrics. The company's revenue growth over the past three years stands at 5.6%, with an operating margin of 16.8% and a net margin of 15.08% Wipro (WIT) Faces New H-1B Visa Fee Challenges^[1].

The proposed fee increase could impact the business models of these companies, which rely heavily on the visa program to bring foreign workers to the United States. The operational strategies and profitability margins of major companies may be affected, potentially reshaping the landscape for tech firms that depend on skilled foreign labor.

A formal proclamation on the new H-1B visa fee could come as early as Friday, though key details on its implementation remain unclear. The move represents a major victory for immigration hard-liners and a significant challenge for the technology sector, setting the stage for a new and intense battle over the future of high-skilled immigration in the United States.