France's Capgemini H1 revenue rises on firm AI demand, lifts 2026 growth target

Capgemini SE

30/07/2026 06:12

Overview
France IT services firm's H1 revenue rose 8.8% yr/yr, slightly ahead of expectations
Normalized EPS fell 11.9% and net profit dropped 31.3%, impacted by higher restructuring charges

Outlook
Capgemini raises 2026 constant currency revenue growth target to +8.5% to +9.0%
Company maintains 2026 operating margin guidance at 13.6% to 13.8%
Capgemini expects 2026 organic free cash flow of €1.8 bln to €1.9 bln

Result Drivers
AI-DRIVEN TRANSFORMATION - Co said strong demand for AI-powered business transformation projects, including Agentic AI and Physical AI, supported revenue growth
ACQUISITIONS - Integration of WNS and Cloud4C contributed materially to growth, especially in North America, UK & Ireland, and APAC
SECTORAL AND REGIONAL STRENGTH - Financial Services and Manufacturing in North America, Public and Consumer Goods in UK & Ireland, and strong APAC growth drove performance

Company press release: ID:nGNE21T2cb

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
H1 Revenue
Slight Beat*
EUR 12.08 bln
EUR 11.97 bln (2 Analysts)
H1 Net Income
 
EUR 498 mln
 
H1 Basic EPS
 
EUR 2.96
 
H1 Operating Profit
 
EUR 878 mln
 
*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 6 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the it services & consulting peer group is "buy"
Wall Street's median 12-month price target for Capgemini SE is €131.00, about 22.3% above its July 29 closing price of €107.10
The stock recently traded at 40 times the next 12-month earnings vs. a P/E of 8 three months ago

Reuters Recommended Reads
July 29 - Sopra Steria raises growth target on strong European AI, cybersecurity demand
July 29 - Cognizant lifts annual profit forecast on strong financial services growth

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)