Capgemini (CAP) Q2 2025 earnings summary

Executive summary

• H1 2025 revenues reached €11.107 billion, up 0.2% year-over-year at constant currency, with Q2 growth of 0.7% and stable operating margin at 12.4%; normalized EPS rose 2% to €6.00.

• Net profit group share was €724 million, down 13% year-over-year, and organic free cash flow dropped to €60 million from €163 million.

• Bookings totaled €11.993 billion in H1, up 2.1% year-over-year at constant exchange rates, with a book-to-bill ratio of 1.08.

• Demand remained soft amid macroeconomic and geopolitical volatility, but performance slightly exceeded expectations, with strong traction in cloud, data & AI, and digital core.

• Announced acquisition of WNS for $76.50 per share, expected to close by year-end 2025, and a €2 billion multi-year share buyback program.

Financial highlights

• Reported revenue growth was -0.3% for H1 due to FX headwinds; constant currency growth was +0.2%.

• Operating margin stable at 12.4%; gross margin at 26.4%, down 0.3pts year-over-year.

• Net profit group share declined to €724 million from €835 million in H1 last year; basic EPS at €4.26, normalized EPS at €6.00.

• Organic free cash flow was €60 million, down €103 million year-over-year.

• Net debt stood at €2.8 billion as of June 30, 2025, unchanged year-over-year.

Outlook and guidance

• 2025 revenue growth guidance narrowed to -1.0% to +1.0% at constant currency; operating margin target remains 13.3%-13.5%; organic free cash flow target around €1.9 billion.

• Guidance excludes the proposed WNS acquisition and remains cautious due to macroeconomic and geopolitical uncertainties.