Capgemini's first-quarter revenue up 7%, in line with estimates
Capgemini Reports Strong First-Quarter Financial Results
By Leo Marchandon
April 30 - French IT services group Capgemini reported a 7% rise in first-quarter revenue at constant exchange rates on Thursday, in line with guidance.
Revenue Performance and Currency Impact
The company, which serves government agencies, critical infrastructure operators and large regulated businesses, said growth would have been 11% without currency swings.
AI's Influence on Business Mix
CEO Aiman Ezzat told reporters AI is rapidly reshaping the company's business mix, with generative and agentic AI accounting for more than 10% of group bookings in the quarter.
Strategic Partnerships and Alliances
He cited Capgemini's global reach and deeper partnerships with U.S. tech firms, including Google and a new "Frontier Alliance" with OpenAI, as key drivers of growth.
Position on European Tech Autonomy
The French IT services giant, which competes with peers such as Sopra Steria and Accenture, has sidesteppedcalls for European tech autonomy, arguing that U.S. Big Tech's dominance makes any alternative unrealistic.
Regional and Segment Performance
Overall Revenue and Bookings
Revenue rose to 5.9 billion euros ($6.88 billion), while bookings increased 6.2% year-on-year to 6 billion euros in the quarter.
North America Growth
North America grew 20.7% at constant exchange rates to 1.7 billion euros, driven by its recently acquired AI unit WNS.
Performance in France and Europe
Sales fell 1% in France, while the rest of Europe posted 1.7% growth.
Headcount and Integration
Group headcount stood at 421,000 at end-march, up 23% year-on-year, reflecting the integration of WNS.
Outlook and Guidance
Revenue Growth Targets
Capgemini confirmed its target of revenue growth around 6.5% to 8.5%.
Currency Exchange Rate
($1 = 0.8578 euros)
(Reporting by Leo Marchandon in Gdansk; Editing by Sumana Nandy and Nivedita Bhattacharjee)
