Capgemini bets on AI transformation as generative AI bookings hit 10% of quarterly sales

Capgemini Says AI Pivot, Sovereignty Push Will Drive Growth

The company is dealing with an economic slowdown and uncertainty, but is seeing "growing momentum" in demand from the defense industry and for sovereign technology. Capgemini Chief Executive Officer Aiman Ezzat said the French IT company is "clearly pivoting" to facilitate artificial intelligence adoption, which will fuel sales this year. Revenue in 2026 will grow 6.5% to 8.5%, the company said in a statementBloomberg Terminal on Friday. That compared to the 7.2% average analyst forecast compiled by Bloomberg. Capgemini offers software, cloud services, engineering and outsourcing services to corporate clients, and has been partnering with firms like Microsoft Corp., Alphabet Inc. and compatriot Mistral to offer AI products to its business users. Still, companies selling specialized software and consulting services have been targeted in a broad selloff in businesses seen as vulnerable to AI innovation. "In 2026, our growth will be fueled by AI-led transformation programs, Intelligent Operations where we are signing some large deals, and sovereignty where demand is significantly increasing," Ezzat said in the statement. Capgemini shares rose 1.5% to €101.20 at 9:09 a.m. in Paris trading. The stock has dropped about 29% so far this year. Revenue grew 1.7% to €22.5 billion ($26.7 billion) in 2025, compared to analyst estimates for €22.3 billion. Net income for the period declined 4.2% from a year earlier to €1.6 billion. The French company is also dealing with an economic slowdown that's forcing customers to hold off on new spending. Ongoing uncertainty around tariffs and trade as well as high interest rates are making companies more cautious about investing in technology and IT. While demand was "subdued in some markets" last year, the company said customers were focused on adding AI tools to their businesses and Paris-based Capgemini is seeing "growing momentum" in demand from the defense industry and for sovereign technology. Capgemini said this month it plans to sell its US-based unit Capgemini Government Solutions, due to scrutiny and critics over its contracts with US Immigration and Customs Enforcement.

Capgemini exceeds revenue target as newly acquired WNS drives AI growth

Feb 13 (Reuters) - French IT services group Capgemini (CAPP.PA), opens new tab on Friday reported full-year revenue that beat its own target, driven by accelerating fourth-quarter growth as its recently bought WNS unit fuelled demand for AI-powered business process services. Revenue grew 3.4% at constant exchange rates to 22.47 billion euros ($26.65 billion) in 2025, exceeding the company's October guidance for 2% to 2.5% growth. Fourth-quarter sales surged 10.6%, with newly acquired WNS and Clou4C making a "significant contribution" after their consolidation, Capgemini said. Group CEO Aiman Ezzat said in a statement that generative and agentic AI accounted for more than 10% of group bookings in the quarter, up from around 5% earlier in the year. The company has already identified around 100 cross-selling opportunities with WNS and signed an intelligent operations contract worth more than 600 million euros, covering multiple business functions and processes linked to agentic AI transformation, Ezzat added in a call with journalists. Capgemini forecast 2026 revenue growth of 6.5% to 8.5% at constant exchange rates, and said that around 4.5 to 5 percentage points of that would come from acquisitions, primarily WNS. It also expects its operating profit margin to expand to between 13.6% and 13.8%, from 13.3% in 2025. Organic free cash flow is expected in a range of 1.8 billion to 1.9 billion euros, slightly below last year's 1.95 billion due to higher restructuring costs, it said. Capgemini said it would incur around 700 million euros in restructuring charges over the next two years, most of them in 2026, as it adapts its workforce and skills to align with demand for AI-driven services. The French company said it was pivoting "to be the catalyst for enterprise-wide AI adoption", betting on AI-led transformation programs, intelligent operations and sovereignty-related projects to fuel growth. The group's headcount stood at 423,400 at end-December, up 24% year-on-year, primarily reflecting the integration of WNS employees. ($1 = 0.8432 euros) Reporting by Leo Marchandon in Gdansk, editing by Milla Nissi-Prussak Our Standards: The Thomson Reuters Trust Principles., opens new tab * Suggested Topics: * Artificial Intelligence Leo Marchandon Thomson Reuters Leo is a news reporter based in Gdansk, focusing on the media, telecoms, and technology sectors in France and the Benelux countries. Prior to this, he worked in France, covering regional and business news, including politics, policies, economy and business with strong focus on tech startups.