Finance
UK's capita sees 2026 margin dip on contact centre weakness, higher costs
Published by Global Banking & Finance Review®
Posted on March 10, 2026
2 min readLast updated: March 10, 2026
Quick Summary
Capita expects a slight drop in its adjusted operating margin in 2026, weighed down by a weak contact‑centre division and elevated costs from new project roll‑outs. Adjusted revenue fell by 1.2 % to £2.2 billion in 2025, and analysts forecast modest growth next year.
Capita Predicts 2026 Margin Dip from Contact Centre and Cost Pressures
Capita Faces Margin and Revenue Challenges Amid Market Pressures
March 10 (Reuters) - British outsourcing firm Capita said on Tuesday it expects a slight decline in adjusted operating margin in 2026, citing continued weakness in its contact centre division and higher costs tied to new project launches.
Challenging Operating Environment
Outsourcing and business-services providers have been contending with a challenging operating environment, as clients delay spending amid weak economic confidence and geopolitical uncertainty.
Contract Losses and Revenue Declines
Capita has also been grappling with contract losses and revenue declines in some of its key units.
Contact Centre Division Overview
Its contact centre division provides call centre and social media management services, alongside broader digital customer support.
Revenue Outlook and Analyst Expectations
The company, which provides services across the public sector, customer-experience and professional-services markets, expects to deliver low single-digit adjusted revenue growth in 2026 compared with 2025.
Adjusted revenue fell 1.2% last year to 2.2 billion pounds ($2.96 billion).
Analysts, on average, expect fiscal 2026 revenue to come in at 2.33 billion pounds, per a company-compiled consensus.
Currency Note
($1 = 0.7431 pounds)
(Reporting by Nithyashree R B in Bengaluru; Editing by Sumana Nandy)
Key Takeaways
- •Contact centre weakness continues to pressure margins in 2026 amid ongoing contract losses and volume reductions.
- •Despite margin squeeze, Capita anticipates low single‑digit adjusted revenue growth in 2026 versus a 1.2 % drop in 2025.
- •Cost pressures—including reinvestment in new projects—are dampening profitability, even as the company pushes strategic transformation and cost‑saving programmes.
Frequently Asked Questions about UK's Capita sees 2026 margin dip on contact centre weakness, higher costs
1Why does Capita expect a margin dip in 2026?
Capita anticipates a slight margin decline in 2026 due to ongoing weakness in its contact centre division and higher costs from launching new projects.
2What challenges is Capita facing in its operations?
Capita is dealing with contract losses, revenue declines in key units, and a challenging operating environment due to delayed client spending and economic uncertainty.
3How did Capita's revenue perform last year?
Capita's adjusted revenue fell by 1.2% last year, totaling 2.2 billion pounds.
4What is Capita's revenue outlook for 2026?
Analysts expect Capita's 2026 revenue to reach 2.33 billion pounds, with the company expecting low single-digit growth compared to 2025.
