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(Sharecast News) - Capgemini reported full-year 2025 revenues of 22.47bn on Friday, up 3.4% at constant exchange rates, exceeding its upgraded guidance of 2% to 2.5% growth, as accelerating fourth-quarter momentum and the consolidation of recently acquired businesses boosted performance.
Fourth-quarter revenue rose 10.6% year-on-year at constant currency to 5.97bn, reflecting a significant contribution from acquisitions including WNS and Cloud4C.
Chief executive Aiman Ezzat said the group benefited from strong demand for cloud, data and AI services, as well as digital business process services and large transformation deals.
Generative and agentic AI accounted for more than 8% of bookings in 2025 and over 10% in the fourth quarter, up from around 5% earlier in the year, underlining what the company described as a pivot to enterprise-wide AI adoption.
Bookings rose 3.9% at constant currency to 24.4bn, delivering a book-to-bill ratio of 1.08 for the year and 1.21 in the fourth quarter.
The firm said it had identified around 100 cross-selling opportunities with WNS and recently signed an intelligent operations contract worth more than 600m linked to agentic AI transformation.
Operating margin was stable at 13.3% of revenues, in line with targets, while operating profit declined to 2.2bn from 2.36bn a year earlier due to higher restructuring and acquisition-related costs.
Net profit attributable to the group fell 4.2% to 1.6bn, with basic earnings per share down 3.7% to 9.46.
Normalised earnings per share rose 5.8% to 12.95, while organic free cash flow was broadly stable at 1.95bn.
The board proposed a dividend of 3.40 per share, representing a payout of around 35% of net profit.
Regionally, growth was led by North America, where revenues rose 7.3% at constant currency, and the UK and Ireland, up 10.5%.
Asia-Pacific and Latin America increased 13.8%.
France declined 4.1% and the rest of Europe slipped 0.7%, reflecting weakness in manufacturing and some consumer-facing sectors.
In the fourth quarter, North America revenues jumped nearly 20% and the UK and Ireland more than 21%, supported by Financial Services, TMT and public sector demand.
By sector, financial services was the strongest performer, rising 9.2% for the year and more than 20% in the fourth quarter.
Manufacturing, which accounts for a quarter of group revenues, contracted 2.1% for the year but returned to growth in the final quarter.
Applications and technology services, the group's core business, grew 4.6% in 2025, while operations and engineering services rose 4.9%, with digital business process services benefiting from the WNS integration.
Capgemini said it deployed 4.6bn of capital during the year, including 3.8bn on acquisitions, notably WNS.
Net debt rose to 5.3bn at year-end from 2.1bn in 2024 following bond issuances and deal activity.
Headcount increased 24% year-on-year to 423,400, primarily reflecting the addition of WNS employees.
Looking ahead, the company forecast 2026 revenue growth of 6.5% to 8.5% at constant currency, with around 4.5 to 5 percentage points expected from acquisitions, mainly WNS.
It said it expected operating margin to improve to between 13.6% and 13.8% and organic free cash flow of 1.8bn to 1.9bn, slightly below 2025 due to higher restructuring outflows.
Capgemini said it would incur around 700m in restructuring costs over the next two years, most of it in 2026, as part of 'Fit-for-growth' initiatives aimed at adapting its workforce and skills to AI-driven demand.
The group also highlighted growing demand for sovereignty-related projects and partnerships with major cloud providers including Microsoft, Google and Amazon as additional drivers for 2026.
At 1153 CET (1053 GMT), shares in Capgemini were up 4.42% in Paris at 104.15.
Reporting by Josh White for Sharecast.com.