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Introduction & Market Context
Capgemini (EURONEXT:CAP) presented its third-quarter 2025 results on October 28, revealing better-than-expected performance amid a challenging global demand environment. The IT services and consulting giant reported 2.9% revenue growth at constant currency, marking an improvement from previous quarters and demonstrating resilience in key markets despite ongoing economic uncertainties.
The company’s performance comes at a time when digital transformation initiatives, particularly those centered around artificial intelligence and cloud services, continue to drive technology spending across industries. Capgemini’s strategic positioning in these high-growth areas appears to be paying dividends, enabling the company to raise its full-year guidance despite persistent headwinds in certain regions and sectors.
Quarterly Performance Highlights
Capgemini reported Q3 2025 revenues of €5,393 million, representing a 2.9% year-over-year increase at constant currency. Bookings for the quarter reached €5.2 billion, growing 1.5% compared to the same period last year, with a book-to-bill ratio of 0.96.
As shown in the following chart of quarterly revenue growth:
The company’s revenue trajectory shows stabilization after a challenging period, with Q3 2025 maintaining the improved momentum established in previous quarters. While the €5,393 million figure represents a slight sequential decrease from Q2 2025 (€5,554 million), the year-over-year constant currency growth of 2.9% demonstrates Capgemini’s ability to generate increased business despite market challenges.
Regional and Sector Analysis
Capgemini’s performance varied significantly across regions, with North America, the UK & Ireland, and Asia-Pacific & Latin America showing robust growth, while France and the Rest of Europe experienced contraction.
The geographical breakdown of revenue growth is illustrated in this regional analysis:
North America, representing 29% of group revenues, grew by 7.0% in Q3 2025, while the UK & Ireland delivered an impressive 9.0% growth. The Asia-Pacific & Latin America region outperformed all others with 13.6% growth. However, France declined by 4.7%, and the Rest of Europe contracted by 1.5%, reflecting ongoing challenges in these markets.
From a sector perspective, Financial Services and Telecommunications, Media & Technology emerged as the strongest performers:
Financial Services led the way with 8.5% growth in Q3 2025, followed by Telco, Media & Technology at 7.2%. The Manufacturing sector continued to face headwinds, declining by 2.6%, primarily due to challenges in the automotive industry. Other sectors showed mixed results, with Public Sector growing at 3.4%, Energy & Utilities at 2.3%, and Consumer Goods & Retail at 1.8%.
The company’s business line performance is captured in the following breakdown:
Applications & Technology, which represents 62% of Capgemini’s revenue, grew by 5.7% in Q3 2025, demonstrating strong demand for digital transformation services. Operations & Engineering showed modest growth of 1.3%, while Strategy & Transformation increased by 0.7%.
Strategic Initiatives
Capgemini continues to strengthen its position in artificial intelligence, with a particular focus on generative AI and agentic AI solutions. The company’s AI-first approach is designed to accelerate value creation for clients across various industries.
The company’s comprehensive AI strategy is outlined in this visualization:
Capgemini’s AI capabilities span across four key areas: AI-powered experiences & products, go-to-market solutions, business process operations, and AI-powered IT. The company highlighted that its RAISE platform and AI agents are driving continuous client momentum, with over 8% of bookings now AI-related.
Another strategic focus area is Intelligent Operations, where Capgemini aims to become a leader following its acquisition of WNS:
The company is positioning itself to capitalize on growing demand driven by agentic AI, focusing on large-scale end-to-end business process redesign and leveraging AI tools. Capgemini claims to be uniquely positioned with consulting-led process reengineering capabilities, industry-specific IP solutions, deep domain knowledge, and data & AI expertise.
Forward-Looking Statements
Based on its Q3 performance, Capgemini has revised its 2025 outlook upward, as shown in the following projection:
The company now expects revenue growth of 2.0% to 2.5% at constant exchange rates for the full year 2025, a significant improvement from the previous guidance of -1.0% to 1.0%. The operating margin is projected to be between 13.3% and 13.4%, slightly narrowed from the previous range of 13.3% to 13.5%. Organic free cash flow is expected to be around €1.9 billion.
Capgemini’s workforce strategy continues to evolve, with a clear shift toward offshore resources:
As of September 2025, the company’s total headcount reached 354,700, representing a 4.7% increase year-over-year. This growth was driven by a net addition of 17,400 offshore employees, while onshore headcount decreased by 1,600. The last-12-months attrition rate stood at 15.6%, a slight increase of 0.2 percentage points.
Capgemini’s Q3 2025 results demonstrate the company’s resilience and strategic focus on high-growth areas such as AI and cloud services. While challenges persist in certain regions and sectors, the improved performance and upward revision of full-year guidance suggest that the company’s transformation initiatives are yielding positive results. As Capgemini continues to invest in AI capabilities and intelligent operations, it appears well-positioned to capitalize on the evolving technology landscape despite ongoing market uncertainties.
Full presentation:
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