Capgemini Group reported consolidated revenues of €5,553 million in Q3 2022, up +22.0% year-on-year at current exchange rates and +15.7% at constant exchange rates*.
Aiman Ezzat, Chief Executive Officer of the Capgemini Group, commented: “We continue to see double-digit growth across geographies and business lines, and to gain market share in digital transformation.
We are reaping the benefits of our strategy and market positioning, with our unique capabilities from consulting to technology and engineering combined with relevant industry expertise. As a strategic business and technology partner, we bring industry-specific solutions that create concrete business outcomes across the whole value chain of our clients’ organization.
We continue to invest in the high demand areas of cloud, data and AI, Intelligent industry and cybersecurity, where Capgemini is recognized as a leader by many industry analysts. We are accelerating our investments in the ‘what’s next’ with a focus on sustainability, quantum computing and metaverse.
We were just awarded an EDGEplus certification recognizing our outstanding commitment towards gender and intersectional equity across the globe.
Given this very good Q3 performance, we now feel comfortable with the top end of our growth outlook for 2022.”
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Capgemini’s growth momentum remained strong in Q3 2022. Group revenues grew +15.7% at constant exchange rates to €5,553 million, and organic growth* (i.e. excluding the impacts of currency fluctuations and changes in Group scope) reached +14.3%. Therefore, given the higher comparison basis, the Group maintained in Q3 the underlying growth momentum recorded since the beginning of the year. For the first nine months of the year, growth reached +22.5% on a reported basis and +17.5% at constant exchange rates, while organic growth stood at +16.2%.
Cloud and Data are at the core of the digital transformation projects of Capgemini’s clients, whether to support growth initiatives or optimize costs. These projects drive Group momentum, particularly in the Intelligent Industry and Customer First business areas.
OPERATIONS BY REGION
All Group regions recorded another quarter of strong double-digit constant currency growth, extending the robust momentum recorded across regions since the beginning of the year.
Revenues in North America (33% of Group revenues in Q3 2022) grew by +14.7% at constant exchange rates, driven mainly by the Financial Services, Manufacturing and TMT (Telecom, Media and Technology) sectors.
The United Kingdom and Ireland region (12% of Group revenues) continued to report strong momentum with growth of +17.2% at constant exchange rates, boosted by the Public Sector as well as the Financial Services and Energy & Utilities sectors.
France (18% of Group revenues) reported revenue growth of +12.7% at constant exchange rates, with a particularly strong performance in the Manufacturing and Consumer Goods & Retail sectors.
The Rest of Europe region (28% of Group revenues) grew +15.5% at constant exchange rates, with the Manufacturing and Consumer Goods & Retail sectors remaining the top drivers.
Finally, revenues in the Asia-Pacific and Latin America region (9% of Group revenues) increased sharply by +24.1% at constant exchange rates, with the scope impact of 2021 Group acquisitions is now decreasing compared to prior quarters. Underlying momentum was particularly robust in the the Financial Services and Manufacturing sectors.
OPERATIONS BY BUSINESS
All Group business lines also reported double-digit constant currency growth rates of their total revenues* in Q3 2022, in line with prior periods.
Strategy & Transformation services (8% of Group revenues in Q3 2022) posted a very strong growth of +28.5% at constant exchange rates, reflecting the Group’s positioning well ahead of clients’ digital transformation projects.
Applications & Technology services (62% of Group revenues and Capgemini’s core business) reported growth of +15.9% at constant exchange rates, on sustained client demand for modernizing and optimizing their digital environment.
Operations & Engineering services (30% of Group revenues) grew +13.8% at constant exchange rates, driven by robust Engineering and Cloud infrastructure services.
At September 30, 2022, the Group’s total headcount stood at 358,400, up +16% year-on-year, with a +19% increase in employees in offshore centers to 210,600 (59% of the total headcount).
Bookings totaled €5,427 million in Q3 2022, a +13% increase at constant exchange rates year-on-year. Considering the usual bookings seasonality, this solid growth translates into a book-to-bill ratio of 0.98.
The Group’s financial targets for 2022 are:
- revenue growth of +14% to +15% at constant currency (objective raised on publication of the half-year results on July 28, 2022);
- operating margin of 12.9% to 13.1%;
- organic free cash flow above €1,700 million.
The inorganic contribution to the growth objective is unchanged and should be around 1.5 points.
Aiman Ezzat, Chief Executive Officer and Carole Ferrand, Chief Financial Officer, will present this press release during a conference call in English to be held today at 8.00 a.m. Paris time (CET). You can follow this conference call live via webcast at the following link. A replay will also be available for a period of one year.