Capgemini (CAP) Q2 2025 earnings summary

Executive summary

• H1 2025 revenues reached €11.107 billion, up 0.2% year-on-year at constant currency, with Q2 returning to positive growth at 0.7% year-on-year; reported revenue was down 0.3%.

• Operating margin remained stable at 12.4%, with normalized EPS up 2% to €6.00; net profit group share was €724 million, down 13% year-on-year.

• Bookings totaled €11.993 billion (+2.1% year-on-year), with a book-to-bill ratio of 1.08, driven by strong demand in cloud, data & AI.

• Organic free cash flow was €60 million in H1, compared to €163 million in H1 last year.

• Announced acquisition of WNS for $76.50 per share, expected to close by year-end 2025, and a €2 billion multi-year share buyback program.

Financial highlights

• Operating profit was €976 million (8.8% of revenues), down from €1,147 million (10.3%) in H1 last year, mainly due to higher restructuring costs.

• Net profit group share was €724 million, with basic EPS at €4.26 (-13%) and normalized EPS at €6.00 (+2%).

• Gross margin was 26.4%, down 30 basis points year-on-year.

• Net debt stood at €2.8 billion at the end of H1, unchanged from last year but up from €2.1 billion at end-2024.

• Dividend of €578 million paid for fiscal year 2024 (€3.40 per share).

Outlook and guidance

• 2025 revenue growth expected between -1.0% and +1.0% at constant currency; operating margin target at 13.3%-13.5%; organic free cash flow objective at around €1.9 billion.

• Guidance excludes the proposed WNS acquisition.

• Management remains cautious due to macroeconomic and geopolitical uncertainties, expecting Q3 to be similar to Q2.