Capgemini Raises Full-Year Revenue Guidance Amid Strong North America Growth, Tightens Margin Outlook

Capgemini's third quarter of 2025 saw consolidated revenue reach €5.39 billion, a slight 0.3% increase year-on-year, exceeding expectations. However, this represents a marginal dip from the previous quarter's €5.5 billion. Total bookings for the quarter were €5.1 billion, a sequential decrease from €6.1 billion, attributed to seasonal factors. The company's performance was bolstered by robust 7.0% year-on-year growth in its second-largest market, North America, driven by demand in Financial Services, Telecoms, Media and Technology (TMT), and life sciences.

Consequently, Capgemini has raised its full-year revenue guidance for the second time this year. Initially set between -2.0% to +2.0% at constant currency, it was narrowed to -1.0% to +1.0%, and now stands at +2.0% to +2.5%. This upward revision is supported by better growth in markets outside France and Europe, and the expected consolidation of WNS, acquired on October 17th, whose financials will be reported from the fourth quarter.

Despite the improved revenue outlook, Capgemini has tightened its operating margin guidance from 13.3%-13.5% to 13.3%-13.4%. Chief Executive Officer Aiman Ezzat cited ongoing pricing pressure and demand softness in the overall market as reasons, stating that aggressive pricing is a current reality that will likely persist until the global market expands at a faster pace. The WNS acquisition is expected to bring cross-selling opportunities, particularly in AI-driven Business Process Services (BPS) for large clients in banking and insurance sectors across UK, US, and Australia.

Additionally, Capgemini announced changes to its India leadership, with Ashwin Yardi transitioning to non-executive Chairman and Sanjay Chalke becoming the new CEO from January 2026. Capgemini India, with nearly 1.8 lakh employees, forms a significant part of the company's global workforce of over 3.5 lakh.

Impact This news directly impacts Capgemini SE's stock performance and the broader IT services sector. Investors will watch how the company navigates pricing pressures while integrating WNS and achieving its revised guidance. The strong growth in North America and the strategic WNS acquisition indicate potential future growth drivers. The positive outlook on Indian market growth mentioned separately is a broader economic point, not directly tied to Capgemini's results, but highlights a favorable environment for companies with Indian operations. Rating: 7/10

Difficult Terms * **Consolidated Revenue**: The total revenue of a parent company and its subsidiaries, combined as if they were a single entity. * **Year-on-year (YoY)**: A comparison of financial data over two consecutive years, for the same period (e.g., Q3 2025 vs. Q3 2024). * **Reported Basis**: Financial results reported using actual exchange rates, without adjustments for currency fluctuations. * **Sequential Decline**: A decrease in a metric (like revenue or bookings) compared to the immediately preceding period (e.g., Q3 vs. Q2 of the same year). * **Seasonality**: Predictable fluctuations in business activity or demand that occur at roughly the same time each year due to seasons, holidays, or other recurring factors. * **Constant Currency**: A way of reporting financial results that excludes the impact of foreign exchange rate fluctuations, allowing for a clearer comparison of underlying business performance. * **Operating Margin**: A profitability ratio that shows how much profit a company makes from its core business operations, expressed as a percentage of revenue. It's calculated as (Operating Income / Revenue) * 100. * **Pricing Pressure**: A situation where companies must lower their prices or offer discounts due to intense competition or weak customer demand. * **Demand Softness**: A period where the overall demand for goods or services in a market is weak or declining. * **Acquisition**: The act of one company purchasing most or all of another company's shares or assets to gain control. * **Cross-selling Opportunities**: The practice of selling additional products or services to an existing customer, often related to their initial purchase. * **AI-driven BPS**: Artificial Intelligence-driven Business Process Services. This refers to outsourcing business processes (like customer service, finance, HR) that are enhanced or powered by artificial intelligence technologies. * **Offshore Locations**: Countries or regions where a company has operations or employs staff located geographically far from its headquarters, often chosen for cost advantages.