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Investing.com -- Capgemini SE (EPA:CAPP) raised its full-year 2025 growth outlook after reporting a better-than-expected third quarter, supported by rising demand in North America and continued expansion in cloud, data and artificial intelligence services.
The Paris-based technology and consulting group posted consolidated revenues of €5.39 billion for the third quarter, an increase of 0.3% year-on-year on a reported basis and 2.9% at constant exchange rates.
For the first nine months of 2025, revenues totaled €16.50 billion, up 1% at constant exchange rates and down 0.1% on a reported basis.
“The Group delivered a strong Q3, better than expected, thanks to the relevance of our AI-powered business and technology partner positioning and the targeted actions initiated a year ago, in a demand environment that is largely unchanged,” Chief executive Aiman Ezzat said in a statement.
Following the results, Capgemini raised its constant currency revenue growth target for 2025 to between 2% and 2.5%, compared with its earlier forecast range of negative 1% to positive 1%.
The operating margin target was narrowed to between 13.3% and 13.4%, from 13.3% to 13.5%, and the organic free cash flow forecast remained at about €1.9 billion.
Jefferies analysts said the results showed “solid top line trends” but pointed to “ pricing pressure negatively impacting on margins.”
The brokerage noted that while constant currency growth of 2.9% represented a clear acceleration from 0.7% in the second quarter, margins narrowed despite the inclusion of what it called a “margin accretive” acquisition.
At constant exchange rates, revenue in North America rose 7%, driven by Financial Services, TMT (Telecoms, Media and Technology) and Manufacturing, particularly in life sciences.
The United Kingdom and Ireland grew 9%, while France declined 4.7%. The Rest of Europe fell 1.5%, and Asia-Pacific and Latin America posted the strongest performance, up 13.6%.
By business line, Applications & Technology, which represents 62% of 2024 group revenues, increased 5.7%. Strategy & Transformation services rose 0.7%, and Operations & Engineering grew 1.3%.
Bookings reached €5.16 billion in the quarter, an increase of 1.5% at constant exchange rates, with a book-to-bill ratio of 0.96.
Jefferies said AI-related bookings accounted for about 8% of total orders, up from roughly 7% in the first half.
Capgemini’s total headcount stood at 354,700 at the end of September, up 4.7% from a year earlier.
The company said the completed acquisition of WNS would contribute about two percentage points to 2025 revenue growth, compared with an earlier estimate of one point.
“With the acquisition of WNS now complete, we lead in the fast-growing Intelligent Operations market addressing client demand for agentic AI-powered business operations,” Ezzat said.