Business
France’s Capgemini 2022 Margin Growth Likely Capped by Costs
Published by maria gbaf
Posted on February 15, 2022
2 min readLast updated: February 9, 2026
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Company
Published by maria gbaf
Posted on February 15, 2022
2 min readLast updated: February 9, 2026
Add as preferred source on Google(Reuters) -Gains in French IT consultancy Capgemini’s operating margin this year will likely be held back by inflationary pressures on salary and the cost of returning to offices, the company said after reporting robust results on Monday.
(Reuters) -Gains in French IT consultancy Capgemini’s operating margin this year will likely be held back by inflationary pressures on salary and the cost of returning to offices, the company said after reporting robust results on Monday.
The firm, which offers its services to industries ranging from telecommunications to aerospace, expects a 2022 operating margin of 12.9% to 13.1% and revenue growth of 8%-10% at constant currency.
For 2021, it posted an operating margin of 12.9%, back at pre-pandemic levels, on revenue of 18.16 billion euros ($20.52 billion), up 15.1% at constant currency.
Capgemini said margin improvements would be reined in by salary inflation and as the company anticipates higher costs from the return of workers to the office and increased travelling, Chief Executive Aiman Ezzat said during a call.
Europe’s tech index has climbed about 32% in 2021, hitting all-time highs since the dot-com bubble in 2000, while Capgemini surged nearly 70% last year.
However, since the beginning of the year, the pan-European tech sub-index has dived 15% amid higher rate expectations and inflation concerns.
Capgemini a strong year in 2021 which was allowed by “the acceleration of the digital transformation of large companies and organizations and investments (…) made in offerings”, Ezzat said.
“The cloud and data are priorities for companies and we are very well positioned on those markets,” he added.
(Reporting by Kate EntringerEditing by Bernadette Baum)
Operating margin is a financial metric that shows the percentage of revenue that remains after covering operating expenses. It indicates how efficiently a company is managing its core business operations.
Revenue growth refers to the increase in a company's sales over a specific period, usually expressed as a percentage. It is a key indicator of business performance and market demand.
Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power. It is usually measured annually and can impact consumer spending and business costs.
Digital transformation is the process of integrating digital technology into all areas of a business, fundamentally changing how it operates and delivers value to customers.
Corporate strategy is a comprehensive plan that outlines how a company will achieve its long-term goals and objectives. It includes decisions on resource allocation, market positioning, and competitive advantage.
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