Capgemini has upgraded its 2026 revenue growth target to 8.5%-9%, citing high demand for AI transformation and defense projects. The company maintained its profit margin goals and reported strong first-half revenue growth of 8.8%.
Capgemini has officially revised its 2026 revenue growth forecast, setting a new expectation of 8.5% to 9% at constant currency, up from the previous range of 6.5% to 8.5%. This shift reflects the company’s ability to capture larger enterprise contracts, particularly as clients move from testing artificial intelligence to implementing it across their core business processes.
Scaling AI and Defense Investments
A major driver of this growth is the increasing adoption of agentic AI, where software systems perform complex tasks autonomously. The company noted that its recent expansion into specialized operations has helped build a stronger pipeline for these large-scale technology projects. Beyond AI, Capgemini is seeing a rise in spending from sectors focused on defense and technology sovereignty. As governments and corporations look to secure their digital infrastructure, the company is positioning itself as a primary provider for these long-term security initiatives.
Financial Performance and Cash Flow
For the first half of 2026, the company reported total revenue of €12.08 billion, representing a growth of 8.8% at constant exchange rates. This performance is supported by a solid second-quarter booking figure of €6.55 billion, leading to a book-to-bill ratio of 1.07. A book-to-bill ratio above 1 is generally seen as a positive sign, indicating that the company is winning more business than it is completing, which creates a cushion for future revenue.
Despite the higher revenue target, Capgemini has kept its other financial goals steady. The company continues to target an operating margin between 13.6% and 13.8%. Additionally, it maintains a free-cash-flow expectation of €1.8 billion to €1.9 billion. This suggests that while the company is growing its top-line revenue, it intends to maintain its current level of operational efficiency and discipline in how it spends cash.
What Investors Should Monitor
While the outlook is positive, the company’s ability to sustain these margins will depend on its success in managing the rising costs associated with high-end tech talent and complex project execution. Investors may keep an eye on whether the company can maintain this booking momentum in upcoming quarters, especially as economic conditions in Europe and other key markets continue to evolve. Future updates will likely center on whether the actual margins remain within the projected range as the company scales its AI and defense-related operations.