Capgemini (CAP) Q3 2025 TU earnings summary

Executive summary

• Q3 2025 revenues reached €5,393 million, up 2.9% year-on-year at constant currency, with performance exceeding expectations and broad-based regional and sector improvements, especially in North America, UK & Ireland, Asia-Pacific, and Latin America.

• Bookings totaled €5,161 million, up 1.5% year-on-year at constant currency, with a book-to-bill ratio of 0.96, reflecting typical seasonality.

• Growth was driven by strong demand in financial services, TMT, and AI-powered solutions, while manufacturing continued to decline.

• AI and digital transformation remain central, with significant client wins, integration of WNS, and proprietary AI platform launches strengthening intelligent operations.

• Demand remains stable, with clients prioritizing operational efficiency and strategic transformation, especially in cloud, data, and AI/GenAI solutions.

Financial highlights

• Q3 2025 revenues grew 2.9% year-on-year at constant currency; reported growth was 0.3% due to FX headwinds.

• For the first nine months, constant currency growth was 1.0%, with M&A contributing about one point in Q3.

• WNS acquisition to add around 4 points to Q4 growth and 1–2 points to full-year growth.

• Operating margin target set at 13.3–13.4% for 2025.

• Organic free cash flow guidance maintained at around €1.9 billion.

Outlook and guidance

• 2025 constant currency growth target raised to 2.0–2.5%, up from previous -1.0% to +1.0%.

• Demand environment expected to remain unchanged in Q4; no further organic growth acceleration anticipated.

• WNS to be consolidated from October 17, 2025, impacting Q4 and full-year results.

• FX headwinds expected to be 3.5–4 points in Q4, with full-year impact of -1.5 to -2 points.

• M&A contribution to revenue growth now estimated at around 2 points following the WNS acquisition.