Capgemini (CAP) Q1 2026 TU earnings summary

Executive summary

• Q1 2026 revenue reached €5.943 billion, up 11.0% year-over-year at constant exchange rates and 7.0% at current rates, driven by robust organic growth, cloud and AI strategy execution, and contributions from WNS and Cloud4C acquisitions.

• Bookings totaled €6.054 billion, up 6.2% at constant exchange rates, with generative and agentic AI bookings contributing over 11% of total bookings.

• Growth was reinforced by major transformational deals, long-term client commitments, and strong commercial momentum in AI and intelligent operations.

• All major sectors grew excluding acquisitions, with financial services, public sector, and TMT showing the strongest underlying growth, particularly in North America and the U.K.

• The company is accelerating its own AI transformation and scaling its defense business across Europe, leveraging digital expertise and cross-border delivery.

Financial highlights

• Revenue of €5,943 million, up 11.0% year-over-year at constant currency and 7.0% on a reported basis, with a 4.0% negative currency impact and 6.5 percentage points from acquisitions.

• Book-to-bill ratio stood at 1.02, slightly above the 10-year average, indicating solid commercial momentum.

• Headcount at quarter-end was 421,000, up 23% year-over-year due to WNS integration, with 66% offshore utilization.

• Attrition rate at 18.6%, down 1.2 points year-over-year.

• Foreign exchange was a 400 basis point headwind in Q1; expected to be less impactful in Q2 and for the full year.

Outlook and guidance

• Q2 2026 expected to deliver around 10% constant currency growth, including 6.5% from inorganic contribution.

• Full-year 2026 targets unchanged: revenue growth of 6.5%-8.5% at constant exchange rates, operating margin of 13.6%-13.8%, and organic free cash flow of €1.8-1.9 billion, factoring in €200 million higher restructuring outflows for Fit-for-Growth initiatives.

• Margin improvement expected in H2 as Fit for Growth benefits materialize; H1 margin to be broadly in line with last year on a like-for-like basis.