Capgemini (CAP) investor relations material

Executive summary

• H1 2026 revenue reached €12.8 billion, up 11.3% year-on-year at constant currency, with strong AI-driven demand and market share gains, especially in North America (+19.8%) and UK/Ireland (+21.1%).

• Bookings totaled €12.6 billion, with a book-to-bill ratio of 1.04, reflecting solid commercial momentum and robust pipeline growth in Intelligent Business Operations.

• Recent acquisitions (WNS, Cloud4C) and the launch of Intelligent Business Operations are driving double-digit growth and expanding the addressable market, with the opportunity pipeline reaching €13.3 billion.

• Fit for Growth program is progressing, with expected margin improvements from H2 2026 and further benefits through 2027.

• Strategy focused on AI-driven transformation, with significant traction in Intelligent Business Operations.

Financial highlights

• Operating margin for H1 was 12.5%, up 10 bps year-on-year; gross margin was 26.1%, down 30 bps due to underutilization in France and Europe.

• Operating profit declined 10.1% to €878 million due to higher restructuring and integration costs.

• Group net profit was €498 million, down 31.3% year-on-year; basic EPS at €2.96; normalized EPS at €5.29, down 11.9% year-on-year.

• Organic free cash flow was €37 million, down from €60 million in H1 2025, consistent with seasonal patterns.

• Net debt increased to €6.5 billion, reflecting bond issuance, refinancing, and M&A activity.

Outlook and guidance

• Upgraded full-year constant currency revenue growth guidance to 8.5%-9% (from 6.5%-8.5%), with inorganic contribution narrowed to ~5 points.

• H2 growth expected at 5.5%-7% despite a higher comparison base.

• Operating margin guidance confirmed at 13.6%-13.8%, representing a 30-50 bps year-on-year improvement.

• Organic free cash flow target reaffirmed at €1.8-1.9 billion for the full year, factoring in €200 million higher restructuring outflows.