Capgemini tightens full-year guidance on caution amid softer demand (updated)

WNS (Holdings)

30/07/2025 06:39

Adds buyback in paragraph 3, analyst note in paragraph 7

By Enrico Sciacovelli

July 30 (Reuters) - French IT consulting firm Capgemini CAPP.PA tightened its full-year revenue guidance on Wednesday, while citing caution amid soft demand and an uncertain economic environment.

    The firm, whose services range from cloud and AI to enterprise management across a wide array of industries, now estimates full-year revenue growth at constant currency in a range of -1% to +1%, compared to the previous estimate of between -2% and 2%.

It also approved a multi-year share buyback program of 2 billion euros ($2.3 billion).

"Going into Q3, we see some stability in the environment, while we retain our cautious stance to account for the uncertainty created by geopolitical tensions and a slow economy," CEO Aiman Ezzat said in a statement.

Capgemini's operating profit for the first half of the year fell 15% year-on-year to 976 million euros.

Revenues stood at 11.11 billion euros, down 0.3% on a reported basis but up 0.2% at constant exchange rates. Demand was soft in the first half as clients slashed non-essential spending, the company said.

Analysts at Jefferies said in a note that the second-quarter figures were solid "but against a backdrop of soft sub-sector newsflow, we doubt the results are sufficient to materially change investor sentiment."

Shares in Capgemini rose as much as 6.9% at market open, but paired gains and were up 0.3% at 0805 GMT.

The group reiterated its full-year operating margin estimate in the 13.3% and 13.5% range and said its targets do not include the impact of the proposed acquisition of technology outsourcing firm WNS WNS.N.

In July, Capgemini agreed to buy U.S.-listed WNS for $3.3 billion in cash to expand the range of AI tools it offers for companies.

($1 = 0.8659 euros)

 (Reporting by Enrico Sciacovelli, additional reporting by Tristan Veyet; Editing by Mrigank Dhaniwala and Matt Scuffham)

 ((Enrico.Sciacovelli@thomsonreuters.com; +48587720309;))