Capgemini sets new targets building on AI consulting, but shares fall
Capgemini's AI Strategy and Market Response
May 27 (Reuters) - Capgemini unveiled new medium-term targets on Wednesday, sending its shares lower, as the French IT group positions itself as a consultant to help companies implement AI across industries.
The shares fell around 4% by 0730 GMT, the worst performers on France's blue-chip index CAC 40.
Investor Sentiment and Analyst Feedback
Jefferies said in a note to clients that recent investor feedback suggested the best catalyst for AI-related stocks would be accelerating trends at the sector level rather than company-specific news.
Financial Targets and Performance Goals
Revenue and Cash Flow Projections
Capgemini targets average yearly revenue growth of 5.5% to 7.5% between 2025 and 2028, and cumulative organic free cash flow of more than €6 billion ($7 billion) from 2026 to 2028. It also aims to raise its operating profit before acquisition costs to between 12.1% and 12.3% of revenue by 2028, it said in a statement.
Analyst Assessment
Jefferies said the targets were broadly in line with the brokerage's preview, but noted that investors may focus on the free cash flow figures rather than anything else.
Capgemini's AI Implementation Approach
Industry-Specific AI Integration
Capgemini said it was targeting the sprawling work of wiring AI into how large legacy companies actually run, notably through its WNS unit. The group will bet on its "in-depth knowledge of the business challenges of each industry", CEO Aiman Ezzat said in a statement published ahead of its capital markets day event.
Competitive Landscape
The strategy places Capgemini in a crowded field that says enterprise AI adoption is too industry-specific to be solved by off-the-shelf tools, and that the real value of AI lies in applying it to companies' own data and operations.
Other Industry Players
French AI pure-play Mistral is targeting industrial clients in aerospace and automotive sectors with physics-capable AI, while ad giant Publicis has expanded itself into an AI maker and IT consultant, explicitly competing with the likes of Capgemini and Accenture.
Upcoming Events and Additional Information
Capgemini's investor presentation is scheduled to start at 1215 GMT.
($1 = €0.8590)
(Reporting by Leo Marchandon in Gdansk, editing by Milla Nissi-Prussak)
