Capgemini (CAP) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenues reached €5,553 million, slightly above expectations, down 0.4% year-on-year at constant currency, and up 0.5% at current rates, in a challenging macro and geopolitical environment.

• Bookings rose 2.8% year-on-year at constant currency to €5,884 million, with a book-to-bill ratio of 1.06, above the historical average.

• Sector trends: manufacturing remained weak (-5.9%), while financial services (+2%), public sector (+2.7%), energy/utilities (+2.5%), and TMT (+3.8%) showed positive momentum.

• North America returned to growth (+0.8%), UK/Ireland accelerated (+3.9%), APAC & LATAM led with +7.6%, while France (-4.9%) and Rest of Europe (-2.3%) declined.

• High-value services in cloud, data, AI, and digital transformation saw robust demand, with generative and agentic AI representing over 6% of Q1 bookings.

Financial highlights

• Q1 revenues: €5,553 million, up 0.5% year-on-year at current rates, down 0.4% at constant currency; currency movements added 90 bps, mainly from USD appreciation.

• Bookings: €5,884 million, up 2.8% year-on-year at constant currency; book-to-bill ratio of 1.06.

• Headcount at quarter-end: 342,700, up 1.6% year-on-year; offshore headcount rose 3.9% to 58% of total.

• Attrition at 16.1% (last 12 months), within optimal range.

• M&A contributed about 1 point to Q1 growth; full-year M&A impact expected at 1-2 points.

Outlook and guidance

• 2025 financial objectives reaffirmed: revenue growth of -2% to +2% at constant currency, operating margin of 13.3%-13.5%, and organic free cash flow of ~€1.9 billion.

• H1 constant currency growth expected to be slightly better than Q4 rate; cautious stance for H2 due to macro and geopolitical uncertainties.

• FX impact expected to turn negative: -1.5% to -2% in Q2, -1% to -1.5% for the full year.