Capgemini (CAP) Q4 2025 earnings summary

Executive summary

• FY2025 revenue reached €22.46 billion, up 3.4% at constant currency, with strong Q4 acceleration and bookings of €24.36 billion, book-to-bill ratio of 1.08.

• Operating margin held stable at 13.3%, organic free cash flow was €1.95 billion, and normalized EPS rose 5.8% to €12.95.

• Net profit (Group share) was €1,601 million; basic EPS €9.46, down 3.7% year-over-year.

• Strategic focus on AI, Intelligent Operations, and sovereignty, with significant progress in ESG and technology partnerships.

• Growth accelerated across geographies, businesses, and sectors, with notable Q4 momentum.

Financial highlights

• Revenue grew 3.4% at constant currency and 1.7% on a reported basis year-over-year.

• Operating profit was €2,199 million (9.8% of revenues), down from 10.7% last year due to non-core items.

• Gross margin at 27.1%, down 30 bps YoY, reflecting a soft market in Continental Europe.

• Effective tax rate improved to 24.6% from 28.8% in 2024.

• Proposed dividend of €3.40 per share, payout ratio around 35%.

Outlook and guidance

• 2026 targets: constant currency revenue growth of 6.5%-8.5% (with 4.5%-5% from M&A), operating margin of 13.6%-13.8%, organic free cash flow of €1.8-1.9 billion.

• Q1 2026 constant currency growth expected at 8.5%-9.5%, with 6.5 points from M&A.

• Currency headwind expected to continue into Q1 2026 at over 4 percentage points, then settle at -1 to -1.5 points for FY2026.

• Guidance factors in €200 million higher restructuring outflows.