Capgemini raises revenue growth target to 9.5% after third-quarter acceleration
Key Facts
On October 30, Capgemini raised its 2026 constant-currency revenue growth target to a range of 9.0%–9.5%, from around 8.5%–9.0%, after revenue grew 11.7% on the same basis in the third quarter. The company’s results showed quarterly revenue of €6.073 billion, up 12.6% at current exchange rates. Chief Executive Aiman Ezzat said underlying growth remained close to the second-quarter level, with the company continuing to outperform the sector. Management kept its operating margin target at 13.6%–13.8% and its organic free cash flow target at €1.8–1.9 billion. The guidance revision raised the upper end of the revenue outlook, while the other two targets remained unchanged.
Revenue totaled €18.155 billion in the first nine months of 2026, up 11.4% at constant exchange rates and 10.0% at current exchange rates, compared with €16.5 billion in the corresponding period of 2025. Reported constant-currency growth accelerated from 11.0% in the first quarter to 11.6% in the second quarter and then 11.7% in the third. In the third quarter of 2025, revenue was €5.393 billion, with constant-currency growth of 2.9%. Third-quarter 2026 bookings reached €5.401 billion, up 3.4% year on year at constant exchange rates. Bookings had risen 1.5% to €5.161 billion in the third quarter of 2025, with a book-to-bill ratio of 0.96.
The company said clients are focused on deploying artificial intelligence across their businesses while addressing governance, cost and security challenges. Ezzat added that this trend is driving upgrades to technology and data foundations, alongside process redesign. Management said revenue growth also benefited from the acquisitions of WNS and Cloud4C, placing acquisition contributions alongside demand linked to clients’ transformation. In its third-quarter 2025 report, Ezzat had said demand was being driven by cloud, data and AI services, with a strong focus on efficiency and optimization. The current quarter’s results show uneven growth across the company’s businesses: Strategy & Transformation revenue expanded 18.6%, Operations & Engineering 26.9%, and Applications & Technology 3.5%, all at constant exchange rates.
By region, Ezzat said the company was seeing strong momentum in North America and the United Kingdom, and a clear acceleration in France, against a stable demand backdrop. North American revenue grew 18.3% at constant exchange rates, driven by continued momentum in financial services, with strong performance in manufacturing, consumer goods and retail. In the United Kingdom and Ireland, revenue rose 25.2%, with strong activity in the public sector and strength in consumer goods and retail, while telecommunications, media and technology declined. France continued to recover, posting growth of 4.9%, supported mainly by manufacturing and financial services, while the public sector remained weak. Growth varied by region and business, illustrating the multiple sources of quarterly revenue underpinning the company’s updated annual target.
Capgemini did not change its organic free cash flow target, although its 2026 target includes an increase of around €200 million in restructuring cash outflows compared with 2025. The company said the increase was related to its Fit for Growth initiatives, while its operating margin target also remained unchanged at 13.6%–13.8%. For the fourth quarter, management is targeting constant-currency growth of between 3% and 4%, against a higher year-on-year comparison base. Ezzat said: "We expect to maintain this momentum and target constant-currency growth of between 3% and 4% in the fourth quarter, against a higher comparison base." The company is scheduled to report its 2026 financial-year results on February 16, 2027. The stock closed at €123.1 on October 29, according to EL7 data.