Capgemini H1 Revenue at €11.1B, Growth at +0.2%

The Board of Directors of Capgemini SE, chaired by Paul Hermelin, convened yesterday in Paris to review and adopt the accounts of Capgemini Group for the first half of 2025. 

Aiman Ezzat, Chief Executive Officer of the Capgemini Group, said: “The Group’s performance continued to improve in Q2. Momentum was positive in North America, the UK and APAC & LatAm and stable in Continental Europe, including France. Our bookings were solid, with a strong book-to-bill ratio of 1.08, and the operating margin was stable at 12.4%. In a challenging environment, our performance in H1 demonstrates the resilience of the Group’s operating model.

Client demand continues to be driven by efficiency and cost optimization. We benefit from good traction in cloud, data & AI and digital core and have built a strong pipeline in generative and agentic AI, which accounted for more than 7% of Group bookings in Q2. On this front, we launched our Resonance AI Framework and further enhanced our AI offerings and partnerships with major players such as Mistral AI and SAP. Demand is increasing in the emerging areas of defense and sovereignty, as well as in digital business process services primarily driven by intelligent operations.

Going into Q3, we see some stability in the environment, while we retain our cautious stance to account for the uncertainty created by geopolitical tensions and a slow economy. In this context and on the strength of this resilient H1 performance, we narrow the range of our constant currency growth outlook for the year to between -1 and +1%.” 

1ST HALF KEY FIGURES

Capgemini generated revenues of €11,107 million in H1 2025, slightly down -0.3% year-on-year on a reported basis and up +0.2% at constant exchange rates*.

As anticipated, demand remained soft in a volatile economic environment. Following the implementation of targeted actions announced at the end of Q3 2024, revenue growth rate gradually improved over the period and the Group returned to positive constant currency growth in Q2 at +0.7% year-on-year. 

In the first half of the year, clients remained focused on driving efficiency through cost transformation programs and discretionary spend was still muted. In that context, Capgemini continues to enjoy strong traction in Cloud, Data & AI and Digital Core. In addition, the Group starts to see in its pipeline growing momentum from Defense and Sovereignty, Generative AI and Agentic AI, and Intelligent Operations.

Bookings totaled €11,993 million in the first half of 2025, up +2.1% year-on-year at constant exchange rates, leading to a strong book-to-bill ratio of 1.08 for the period.

The operating margin* amounts to €1,377 million or 12.4% of revenues, stable year-on-year which demonstrates the resilience of the Group’s operating model in a challenging environment. 

Other operating income and expenses represent a net expense of €401 million, up by €164 million year-on-year. This was notably driven by higher restructuring costs in the first half of the year compared with last year’s pattern, at €136 million in H1 2025 vs. €53 million in H1 2024.

Consequently, the operating profit amounts to €976 million and 8.8% of Group revenues, down year-on-year by -1.5 points. 

Net financial result is an income of €16 million compared with €20 million in H1 2024. 

The income tax expense is €260 million, down by €66 million. The effective tax rate is 26.2% in H1 2025, compared with 28.0% for the same period last year. 

Taking into account the share of profits of associates and non-controlling interests, the Group share in net profit for H1 2025 is down -13% year-on-year at €724 million. Basic earnings per share is €4.26, compared to €4.88 for the same period last year. Normalized earnings per share* stands at €6.00, up +2% compared to H1 2024. 

Finally, organic free cash flow* generation amounted to €60 million in H1 2025, compared with €163 million for the same period last year. In line with its capital allocation policy, the Group paid in H1 2025 dividends of €578 million (€3.40 per share) for the fiscal year 2024.

OPERATIONS BY REGION

At constant exchange rates, revenues in the North America region (28% of 2024 Group revenues) increased by +1.6% year-on-year. Growth was driven by the Financial Services, TMT (Telecoms, Media and Technology) and Energy & Utilities sectors. Operating margin increased to 16.3%, compared with 15.5% in H1 last year.

Revenues in the United Kingdom and Ireland region (12% of 2024 Group revenues) increased by +6.0%, fueled by growth across all sectors. The Energy & Utilities, TMT and Financial Services sectors recorded the strongest growth. Operating margin decreased from 20.5% in H1 2024 to 18.1%.

Revenues in France (20% of 2024 Group revenues) declined by -5.0% year-on-year. Growth in the resilient Public Sector and TMT sector was more than offset by visible softness in the Manufacturing and Consumer Goods & Retail sectors. Operating margin increased from 9.1% in H1 last year to 10.0%.

Revenues in the Rest of Europe region (31% of 2024 Group revenues) declined by -2.3%. This decline reflects the lower activity in the Manufacturing sector and softness in Consumer Goods & Retail while all the other sectors are either stable or growing. Operating margin declined to 10.4%, compared with 11.1% in H1 2024.

Finally, revenues in the Asia-Pacific and Latin America region (9% of 2024 Group revenues) were up +8.7%. This growth was mainly driven by the strong performance of the Financial Services sector that enjoyed double-digit growth. The Consumer Goods & Retail sector in Latin America and the TMT sector in Asia-Pacific also posted solid growth over the period. The region reported an operating margin of 10.1%, slightly down from 10.5% in H1 last year.

OPERATIONS BY BUSINESS

At constant exchange rates, total revenues* of Strategy & Transformation services (9% of 2024 Group revenues) grew by +1.3% year-on-year.

Total revenues of Applications & Technology services (62% of 2024 Group revenues and Capgemini’s core business) increased by +2.6%.

Lastly, Operations & Engineering (29% of 2024 Group revenues) total revenues decreased by -1.5%. 

OPERATIONS IN Q2 2025

Bookings reached €6,109 million in Q2, up +1.5% year-on-year at constant currency and the book-to-bill ratio was a solid 1.10 reflecting ongoing robust commercial momentum. 

Group revenues totaled €5,554 million in Q2 2025, up +0.7% year-on-year at constant exchange rates. Revenue growth rates were stable or continued to gradually improve compared to the previous quarter across all regions, businesses and almost all sectors. Financial Services and TMT sectors recorded their 5th consecutive quarter of acceleration to reach mid-single digit constant currency growth. By business, the strongest improvement came from Operations & Engineering, fueled by improvement across all its business lines, particularly in Business Services which recorded high-single digit growth.

By region, North America benefited from the continued acceleration in Financial Services and TMT sectors, as well as the recovery in the Manufacturing sector which brought Q2 revenue growth to +2.4% at constant exchange rates. 

Revenues in the United Kingdom and Ireland region further accelerated on Q1, up +8.0%, with growth across all sectors. 

As anticipated, revenue growth rate in France remained stable compared to Q1 2025, reporting a -5.0% decline, driven by the lower activity in the Consumer Goods & Retail and Manufacturing sectors. 

The Rest of Europe region posted a revenue decline of -2.3%, as the growth in Energy & Utilities, Services and Public sectors was more than offset by the weakness in the Manufacturing and Consumer Good & Retail sectors. 

Finally, revenues in the Asia-Pacific and Latin America region enjoyed solid growth momentum with revenues up +9.7% benefiting from the Group dynamics in Financial Services and TMT.

HEADCOUNT

The Group’s total headcount stands at 349,400 as at June 30, 2025, up by 12,500 year-on-year and by 6,700 compared to the end of March 2025. The offshore headcount stands at 206,400 employees or 59% of the total headcount.

BALANCE SHEET

Capgemini’s balance sheet structure as at June 30, 2025 was relatively unchanged compared with the one as at June 30, 2024. 

Cash and cash equivalents and cash management assets represent €2.4 billion as at June 30, 2025. Taking into account total borrowings of €5.2 billion, Capgemini’s net debt* stands at €2.8 billion as at June 30, 2025, compared with €2.8 billion as at June 30, 2024 and €2.1 billion as at December 31, 2024. 

ACQUISITION OF WNS

On 7 July 2025, Capgemini and WNS (NYSE: WNS), a leading digital-led business transformation and services company, announced that they have entered into a definitive transaction agreement pursuant to which Capgemini will acquire WNS for a cash consideration of 76.50 USD per WNS share. This transaction aims at creating a global leader in Agentic AI-powered Intelligent Operations. 

The transaction will be accretive to Capgemini’s normalized EPS by 4% before synergies in 2026 and 7% post synergies in 2027. The transaction has been unanimously approved by both Capgemini’s and WNS’ Boards of Directors and is subject to approval by the Royal Court of Jersey and WNS’ shareholders, as well as to receipt of customary regulatory approvals and other conditions. The closing of the transaction is expected to occur by the end of the year.

Capgemini has secured a bridge financing of €4.0 billion, covering the purchase of securities ($3.3 billion), as well as the gross debt and similar obligations of around $0.4 billion and the €0.8 billion Capgemini bond redeemed in June 2025.

SHARE BUYBACK PROGRAM 

The Board of Directors of Capgemini SE has approved a multi-year share buyback program of €2 billion. This new program is being launched after the previous multi-year program was fully utilized and will be essentially funded by Capgemini’s organic free cash-flow. This share buyback program is within the scope of the authorization granted by the Shareholders’ General Meeting of May 7, 2025.

SUSTAINABILITY

In May this year, Capgemini updated its ESG policy and objectives initially set in 2021, reinforcing its commitment to sustainable growth, responsible business practices and corporate accountability. The updated policy builds on the 8 priorities previously defined, adding a 9th focused on ethics, and outlines 14 objectives vs. 11 in the initial version. As part of its ESG policy set in 2021, the Group has already reached many objectives and will continue to build on this momentum through its updated ESG Policy.

The Group has also continued to progress on its sustainability journey. In terms of environmental sustainability, Capgemini was recognized again by an Ecovadis Platinum rating in recognition of its sustainability achievements, with an overall score of 87 points out of 100, remained part of the CDP (Carbon Disclosure Project) A-List and maintained the Prime status and B rating in the ISS ESG Corporate Rating.

In terms of inclusion, the Group reaffirmed its commitment towards building Inclusive Futures for All. To date, over 30,000 Capgemini employees have actively taken part in Inclusion Circles - employee-driven groups in which they share experiences, perspectives and questions around inclusivity in the workplace. The Group also launched the Positive Future Platform, its new volunteering hub that unifies all volunteering efforts, and a fifth global Employee Network Group called EnvironmentALL, to act and learn collectively to protect the environment. Lastly, the Group has been recognized once again as “Best Place to Work for Disability Inclusion” by DisabilityIN and received the Equileap Gold Seal recognizing its progress on advancing gender equality in the workplace.