Shares of Infosys dropped Thursday after the federal government said it would suspend major technology companies from a program that allows skilled foreign workers to obtain permanent residency.
Department of Labor Secretary Keith Sonderling said Thursday that his team would suspend several major information technology companies from the Permanent Labor Certification Program, which allows companies to apply for green cards for H-1B visa workers. Infosys and Cognizant Technology Solutions were among the affected companies, he said at a White House press conference Thursday.
Sonderling also said his department would suspend Microsoft and Adobe from the program due to "multiple active federal investigations."
Vice President J.D. Vance cited alleged fraud as the reason for Microsoft's suspension, Vance said at the press conference.
The announcement has big ramifications for Infosys, a company based in India with a significant footprint in the U.S. Historically, the company has served as a key talent bridge, bringing Indian professionals specializing in technology to work in the U.S.
Technology companies remain the biggest users of H-1Bs, with nearly three-quarters of approvals going to Indian professionals. Indian citizens received 70% of H-1B approvals in fiscal 2025, followed by Chinese nationals with nearly 12%, according to a report from Homeland Security earlier this year.
Infosys ranks third among the companies that file the most H-1B requests, followed by Microsoft in fifth place and Cognizant Technology Solutions in sixth, according to U.S. Citizenship and Immigration Services.
Shares of Infosys declined 2.5% to $10.28 on Thursday, with the stock heading for its lowest closing level in six years according to Dow Jones Market Data.
Microsoft stock rose 0.2% Thursday, while Cognizant fell 0.8%.
Infosys and Microsoft didn't respond to requests for comment from Barron's.
The announced suspension came after the Trump administration asked schools earlier this week to pay $70,000 to have international students on Optional Practice Training, or OPT, a program that helps students work in jobs related to their major course of study during or after their time in school. It's also usually the first step toward getting an H-1B.