Capgemini (CAP) investor relations material

Executive summary

• Q1 2026 revenue reached €5.943 billion, up 11.0% year-over-year at constant exchange rates and 7.0% at current rates, driven by robust organic growth, cloud and AI strategy execution, and contributions from WNS and Cloud4C acquisitions.

• Bookings totaled €6.054 billion, up 6.2% at constant exchange rates, reflecting strong commercial momentum, large transformation deals, and over 11% of bookings from generative and agentic AI.

• Growth was reinforced by the integration of WNS and Cloud4C, significantly increasing offshore headcount and digital business process services.

• All major sectors grew excluding acquisitions, with financial services, public sector, and TMT showing the strongest underlying growth, especially in North America and the U.K.

• No signs of slowdown or client pullback; environment remains stable with continued demand for large-scale transformation and AI adoption.

Financial highlights

• Revenue up 11.0% year-over-year at constant currency and 7.0% on a reported basis, with a 4.0% negative currency impact and 6.5 percentage points from acquisitions.

• Book-to-bill ratio at 1.02, slightly above the 10-year average for Q1, indicating solid commercial momentum.

• Headcount at quarter-end was 421,000, up 23% year-over-year due to WNS integration, with 66% offshore.

• Attrition rate at 18.6%, down 1.2 points year-over-year.

Outlook and guidance

• Q2 2026 expected to deliver around 10% constant currency growth, including 6.5% from inorganic contribution.

• Full-year 2026 targets: revenue growth of 6.5%-8.5% at constant exchange rates, operating margin of 13.6%-13.8%, and organic free cash flow of €1.8-1.9 billion, factoring in €200 million higher restructuring outflows for Fit-for-Growth initiatives.

• Fit for Growth initiative charges to be mostly in H1, with benefits expected in H2, supporting margin improvement.