- Capgemini revised its full-year revenue forecast in constant currency to between -1% and +1%, from a previous range of -2% to +2%.
- The company maintains its expectation for an operating margin between 13.3% and 13.5%.
- Capgemini projects organic free cash flow around €1.9 billion, slightly higher than the estimate of €1.85 billion.
- In the first half of the year, Capgemini‘s operating margin stood at 12.4%, consistent with the same period last year and in line with estimates.
- Revenue amounted to €11.11 billion, slightly down 0.3% year-on-year but higher than the estimate of €11.05 billion.
- Revenue from North America was €3.12 billion, slightly below the €3.14 billion estimate.
- UK & Ireland revenue reached €1.48 billion, surpassing the estimate of €1.45 billion.
- Revenue from France was €2.13 billion, slightly under the €2.16 billion estimate.
- The rest of Europe’s revenue totaled €3.40 billion, narrowly missing the €3.43 billion estimate.
- Asia Pacific & Latin America revenue was €968 million, exceeding the estimate of €958.5 million.
- Net income decreased by 13% year-on-year to €724 million, below the estimate of €773.9 million.
- Sales at constant exchange rates increased by 0.2%, ahead of the estimated decline of 0.44%.
- The operating margin value was €1.38 billion, a 0.5% decrease year-on-year, in line with the €1.37 billion estimate.
- Capgemini reported bookings of €11.99 billion.
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Capgemini on Smartkarma
Analyst coverage on Capgemini on Smartkarma provides valuable insights into the company’s performance and future prospects. Gregory Ramirez‘s report “Capgemini (CAP FP): False Start?” highlights stabilisation in Q1 2025 for Capgemini, with strategic drivers like GenAI, defence, cybersecurity, and sovereignty. While revenue beat expectations and bookings improved, concerns over future growth in Q2 persist due to sector exposure and revenue mix. On the other hand, Baptista Research‘s “Capgemini: Initiation of Coverage- Strategic Acquisitions & 4 Pivotal Growth Levers!” is bullish, acknowledging mixed performance in full-year 2024 results amidst market challenges. The report emphasizes resilience in segments like Financial Services and Public Sector, with potential growth drivers through strategic acquisitions.
In another report by Gregory Ramirez titled “Capgemini SE (CAP FP): A Question of Revenue Mix,” concerns arise over Capgemini‘s underperformance compared to offshore competitors due to revenue mix limitations, specifically its exposure to European manufacturing. Despite high expectations for AI, the impact on bookings remains limited, delaying decision-making processes. Moreover, Ramirez’s analysis on “Capgemini (CAP FP): Back to BPO?” explores the potential acquisition of BPO provider WNS, suggesting Capgemini could afford such a move but may opt for a different strategic focus due to past priorities in cloud, digital, and engineering. Understanding these diverse analyst perspectives is crucial for investors evaluating Capgemini‘s growth potential and strategic direction.
A look at Capgemini Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 4 | |
| Momentum | 2 | |
| OVERALL SMART SCORE | 3.2 |
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
Capgemini, a global provider of information technology services, is positioned for a solid long-term outlook according to Smartkarma Smart Scores. With a growth score of 4 and a resilience score of 4, Capgemini shows promising signs of expanding its operations and weathering market challenges effectively. The company’s focus on innovation and adaptability contributes to its positive outlook, supported by a value score of 3 indicating a reasonable valuation and a dividend score of 3 reflecting stable dividend payments. However, the momentum score of 2 suggests that Capgemini may currently be facing some short-term challenges in capturing market momentum.
The overall description of Capgemini highlights its diverse range of services including mobile software solutions, outsourcing, consulting, and cloud computing across various industries globally. With a balanced performance across the Smartkarma Smart Scores, Capgemini‘s strategic positioning in the IT services sector, combined with its market presence in industries such as aerospace, healthcare, and telecommunications, bodes well for its continued growth and resilience in the long run.
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.
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