- Capgemini‘s first-quarter revenue reached €5.55 billion, slightly exceeding estimates of €5.51 billion, marking a year-on-year increase of 0.5%.
- North America reported revenue of €1.58 billion, up 3.6% year-on-year, surpassing the expected €1.55 billion.
- Revenue from the UK and Ireland increased by 6.4% year-on-year to €728 million, exceeding the estimate of €701.2 million.
- Sales in France fell by 4.9% year-on-year to €1.08 billion, slightly above the projected €1.07 billion.
- The rest of Europe saw a decrease in revenue by 2.3% year-on-year, reaching €1.69 billion, just short of the €1.72 billion estimate.
- Revenue from Asia Pacific and Latin America rose 4.8% year-on-year to €478 million, beating the estimated €456.3 million.
- Sales at constant exchange rates decreased by 0.4%, performing better than the expected decrease of 1.08%.
- North America’s constant currency revenue grew by 0.8%, in contrast to the expected decline of 1.04%.
- UK and Ireland’s constant currency revenue increased by 3.9%, above the estimation of 1.06%.
- France’s constant currency revenue matched the year-on-year decline of 4.9%, better than the estimated drop of 5.36%.
- Rest of Europe’s constant currency revenue decreased by 2.3%, performing worse compared to the estimated drop of 0.28%.
- Asia Pacific and Latin America’s constant currency revenue rose by 7.6%, significantly outpacing the estimated 1.51% growth.
- Capgemini reported bookings of €5.88 billion for the quarter.
- The company maintains its 2025 forecast of an operating margin between 13.3% and 13.5%, aligning with the estimate of 13.5%.
- Revenue growth in constant currency is projected between -2% and +2%, close to the estimated 1.05% growth.
- Organic free cash flow is expected to be about €1.9 billion, slightly below the forecasted €1.92 billion.
Capgemini on Smartkarma
Analysts on Smartkarma have provided mixed coverage of Capgemini, a company facing challenges in its recent performance amidst market pressures. Baptista Research‘s report titled “Capgemini: Initiation of Coverage- Strategic Acquisitions & 4 Pivotal Growth Levers!” highlights a decline in revenues by 2% at constant currency to EUR 22,096 million due to economic pressures and restrained client spending. However, the company showed resilience in segments like Financial Services and Public Sector, with improvements in regions such as North America and Asia Pacific.
On the other hand, Gregory Ramirez‘s reports, “Capgemini (CAP FP): Back to BPO?” and “Capgemini SE (CAP FP): A Question of Revenue Mix” take on a bearish sentiment. Ramirez raises concerns about Capgemini‘s revenue mix limitations and underperformance compared to offshore competitors, despite expectations for AI-driven transformation. The uncertainties around Capgemini‘s acquisition plans in the BPO sector and delays in capitalizing on AI for business transformation have contributed to bearish sentiments among analysts on the company’s growth prospects.
A look at Capgemini Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 4 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Analysts are optimistic about the long-term outlook for Capgemini based on its Smartkarma Smart Scores. With a solid score in Growth and Resilience, the company is positioned well for future success in the information technology services sector. Capgemini‘s focus on providing mobile software solutions, cloud computing, and consulting services aligns with industry trends, contributing to its positive outlook.
While the company scores moderately in Value, Dividend, and Momentum, its strong performance in Growth and Resilience indicators bodes well for its future prospects. Capgemini‘s diverse range of services catering to industries such as aerospace, healthcare, and telecom further strengthens its position in the market. Overall, the company’s Smart Scores reflect a promising long-term outlook for Capgemini in the IT services industry.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
Have feedback on this article? Concerned about the content? Get in touch with us directly.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Analytics and News
- ✓ Events & Webinars
