Capgemini Q4 & FY 2025 Earnings: Strong AI Momentum, €22.5B Revenue, Robust 2026 Guidance & Full Transcript Analysis

Capgemini SE (CAP.PA) delivered resilient full-year 2025 results amid a mixed global IT services landscape, highlighted by accelerating Q4 momentum, strategic emphasis on AI-driven transformation, intelligent operations, and sovereignty solutions. The French consulting and technology leader posted full-year revenue of €22.465 billion, reflecting +3.4% growth at constant exchange rates—surpassing upgraded guidance—and +1.7% on a reported basis. Q4 showed particularly robust performance with +10.6% constant currency growth (including M&A contributions) and approximately +4% organic expansion.

Key Financial Metrics for FY 2025

• Revenue: €22.465 billion (+3.4% constant currency)
• Operating Margin: Stable at 13.3%
• Normalized EPS: €12.95 (+5.8% YoY)
• Organic Free Cash Flow: €1.95 billion
• Bookings: €24.4 billion (+3.9% constant currency), yielding a 1.08 book-to-bill ratio (1.21 in Q4)
• Net Profit (Group Share): €1.601 billion

The company maintained profitability resilience despite softness in Continental Europe, supported by disciplined cost management and broad-based recovery across regions, sectors, and business lines. North America (+7.3% constant currency) and the UK/Ireland (+10.5%) led growth, while France and rest of Europe faced headwinds but showed sequential improvement.

Strategic Focus Driving Future Momentum

CEO Aiman Ezzat underscored 2026 as a pivotal year for transitioning AI from proofs-of-concept to scalable, value-generating enterprise adoption. Key growth pillars include:

• AI Transformation — Emphasis on addressing data foundations, governance, and human-AI collaboration to unlock measurable impact.
• Intelligent Operations — Bolstered by the WNS acquisition; integration on track with expected synergies of €100-140 million revenue and €50-70 million cost annually by 2027. Recent mega-deal (>€600 million) exemplifies Agentic AI-led models delivering cost efficiencies and enhanced outcomes.
• Sovereignty Solutions — Rising demand projected to affect >50% of contracts by 2029 (per Gartner); strengthened via Cloud4C acquisition and partnerships with AWS, Google Cloud, Microsoft, and SAP.

The group is accelerating capability realignment through country-specific “Fit for Growth” initiatives, involving ~€700 million in restructuring over two years to enhance competitiveness in high-growth areas.

2026 Guidance

• Constant currency revenue growth: +6.5% to +8.5% (inorganic contribution ~4.5-5 points)
• Operating margin: 13.6% to 13.8%
• Organic free cash flow: €1.8-1.9 billion (factoring higher restructuring outflows)

Market Reaction & Valuation Insight

Post-earnings, shares showed cautious movement, trading around €100-105 levels in early February 2026 sessions (near 52-week lows after prior highs above €180). At a P/E of approximately 11.3x (per InvestingPro data), Capgemini appears attractively valued relative to IT services peers, offering potential upside for investors focused on AI, digital transformation, and European sovereignty trends.

This performance positions Capgemini well to capitalize on enterprise demand for AI adoption, intelligent process orchestration, and compliant cloud strategies in a multipolar world.