Capgemini SE
OTC:CGEMY
Capgemini SE
Capgemini SE, a French multinational with deep-rooted ties in the information technology and consulting sector, has steadily morphed into a global powerhouse since its inception in 1967. Founded by Serge Kampf as an enterprise management and data processing company, Capgemini's evolution is a testament to its strategic adaptability and unwavering focus on innovation. The company operates mainly through a mosaic of services, aiding businesses in navigating complex digital landscapes. With operations spanning consulting, technology services, and digital transformation, Capgemini provides clients with tailored solutions designed to optimize their operations. From cloud services to cybersecurity, analytics, and artificial intelligence, Capgemini's portfolio positions it as a crucial player for organizations looking to future-proof their operations in our rapidly digitizing world.
At the heart of Capgemini’s business model is its commitment to understanding its clients’ unique challenges and translating technology into effective solutions. Revenue streams flow from its varied service lines, each tailored to specific sectors such as financial services, manufacturing, public services, and consumer goods. By aligning itself with leading technology partners and investing in local talent pools, Capgemini ensures close proximity to clients, fostering long-term relationships and repeat business. This approach not only fuels growth but also reinforces the firm’s reputation as a trusted partner in digital transformation. As businesses increasingly seek digital agility, Capgemini’s continued focus on innovation and strategic partnerships keeps it at the forefront of the consultancy and IT services sectors.
Capgemini SE, a French multinational with deep-rooted ties in the information technology and consulting sector, has steadily morphed into a global powerhouse since its inception in 1967. Founded by Serge Kampf as an enterprise management and data processing company, Capgemini's evolution is a testament to its strategic adaptability and unwavering focus on innovation. The company operates mainly through a mosaic of services, aiding businesses in navigating complex digital landscapes. With operations spanning consulting, technology services, and digital transformation, Capgemini provides clients with tailored solutions designed to optimize their operations. From cloud services to cybersecurity, analytics, and artificial intelligence, Capgemini's portfolio positions it as a crucial player for organizations looking to future-proof their operations in our rapidly digitizing world.
At the heart of Capgemini’s business model is its commitment to understanding its clients’ unique challenges and translating technology into effective solutions. Revenue streams flow from its varied service lines, each tailored to specific sectors such as financial services, manufacturing, public services, and consumer goods. By aligning itself with leading technology partners and investing in local talent pools, Capgemini ensures close proximity to clients, fostering long-term relationships and repeat business. This approach not only fuels growth but also reinforces the firm’s reputation as a trusted partner in digital transformation. As businesses increasingly seek digital agility, Capgemini’s continued focus on innovation and strategic partnerships keeps it at the forefront of the consultancy and IT services sectors.
Revenue: Q3 revenue was EUR 5,377 million, down 1.6% at constant exchange rates and down 2.1% organically, showing only marginal improvement after bottoming out in Q1.
Guidance Cut: Full-year constant currency growth outlook was lowered to minus 2% to minus 2.4%, reflecting further headwinds in Manufacturing and France.
Margin: Operating margin guidance was narrowed to 13.3%–13.4%, trimmed from the previous 13.3%–13.6%. The 14% margin target for next year is no longer seen as achievable.
Bookings & Pipeline: Q3 bookings were EUR 5,222 million, down 0.8% at constant currency, with a book-to-bill of 0.97. Gen AI bookings reached EUR 600 million for the first 9 months.
Sector Dynamics: Financial Services is recovering and expected to return to growth in Q4, while Manufacturing continues to deteriorate, posing a significant headwind.
Targeted Actions: Management is launching simplification and agility measures to better pursue growth, but not at the expense of margin discipline.
Free Cash Flow: Organic free cash flow guidance is unchanged at around EUR 1.9 billion for the year.
2025 Outlook: Management expects a return to organic growth in 2025, assuming current headwinds ease, but will provide more precise guidance at year-end.
