France · Delayed Price · Currency is EUR Capgemini SE Earnings Call Transcripts
Fiscal Year 2025
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Revenue grew 3.4% at constant currency to €22.46 billion, with operating margin stable at 13.3% and organic free cash flow of €1.95 billion. Strong bookings, sectoral and regional improvements, and strategic focus on AI, Intelligent Operations, and sovereignty underpin a positive outlook for 2026.
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Q3 2025 saw 2.9% year-on-year revenue growth at constant currency, with broad-based regional and sector improvements, especially in North America and AI-driven services. The WNS acquisition boosts intelligent operations, and 2025 growth guidance is raised to 2–2.5% despite ongoing pricing pressure.
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Revenue grew 0.2% year-on-year in H1 2025, with Q2 returning to positive growth and strong bookings momentum. Operating margin remained stable, but net profit declined due to higher restructuring costs and currency headwinds. Management maintains a cautious outlook amid ongoing macroeconomic uncertainty.
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The acquisition creates a leader in intelligent operations by combining complementary AI and BPS capabilities, with $3.3 billion cash consideration and targeted synergies of up to EUR 140 million in revenue and EUR 70 million in cost by 2027. Integration is expected to be smooth, with significant cross-selling and EPS accretion projected.
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The acquisition creates a leader in intelligent operations by combining complementary AI and business process expertise, with $3.3 billion cash consideration and targeted synergies of up to EUR 140 million in revenue and EUR 70 million in cost by 2027. Integration is expected to be smooth, with strong support from both management teams and a focus on cross-selling and accelerated growth.
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The AGM reviewed a resilient 2024 performance amid economic headwinds, with stable margins, strong cash flow, and a steady dividend. Strategic focus was placed on AI, talent, and ESG, while all resolutions—including director appointments and compensation—were approved by large majorities.
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Q1 2025 revenues slightly exceeded expectations at €5,553 million, with a -0.4% year-on-year decline at constant currency and strong bookings growth. Sector performance was mixed, with manufacturing weak but financial services, public sector, and TMT showing resilience. Guidance for 2025 is reaffirmed amid ongoing macro uncertainty.
Fiscal Year 2024
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2024 saw resilient margins and strong bookings despite a 2% revenue decline, with robust growth in AI and transformation services. Guidance for 2025 is cautious, targeting -2% to +2% revenue growth and stable cash flow, amid ongoing macroeconomic uncertainty.
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Q3 revenue declined 1.6% at constant currency, with manufacturing weakness offset by financial services recovery. Full-year growth outlook was revised down, margin guidance trimmed, but free cash flow target and medium-term growth ambitions were reaffirmed.
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H1 2024 saw revenues decline 2.6% at constant currency, but Q2 showed improvement and strong bookings. Guidance was revised down due to sector slowdowns, but operating margin and free cash flow targets are maintained, with robust GenAI momentum and major client wins.