Business & Finance

Capgemini Boosts 2026 Outlook After Strong Q3 Earnings

By TOI Tech Desk

Capgemini, one of Europe’s largest IT consulting firms, raised its 2026 revenue growth target for the second time this year following a 12% rise in third‑quarter revenue. The French company said the growth beat analyst expectations and outpaced the sector, driven by demand for AI‑related data system overhauls.

In the third quarter of 2026, Capgemini reported revenues of €6,073 million, up 12.6% year‑on‑year at current exchange rates and 11.7% at constant exchange rates. The group’s underlying growth, excluding acquisitions, was solid, supported by momentum in North America and the United Kingdom and continued improvements in France and the rest of Europe. Acquisitions, notably WNS and Cloud4C closed in Q4 2025, contributed materially to growth in North America, the United Kingdom & Ireland and Asia‑Pacific.

CEO Aiman Ezzat said the company’s strategy, focused on new value pools created by AI, is translating into tangible business traction. Clients are deploying AI at enterprise scale while addressing governance, cost and security challenges, driving demand for modernization of technology and data foundations. The company also sees opportunities in defense and sovereignty as clients emphasize control and strategic resilience.

Ezzat noted that Capgemini is uniquely positioned to make AI real for clients, combining technology, deep industry expertise, business transformation and operational execution, and an expanded partner ecosystem. He said the company expects to maintain momentum and target a constant‑currency growth of 3% to 4% in Q4. On this basis, Capgemini raised its 2026 revenue growth target to 9.0%‑9.5% at constant exchange rates, while confirming operating margin and organic free cash flow objectives.

Bookings in Q3 were €5,401 million, up 3.4% year‑on‑year at constant exchange rates, indicating strong commercial momentum.

Geographically, North America grew 18.3% year‑on‑year, led by financial services, manufacturing and consumer goods & retail. The United Kingdom and Ireland grew 25.2%, with strong public sector and consumer goods & retail traction. France grew 4.9%, driven by manufacturing and financial services. The rest of Europe grew 3.4%, with public, energy & utilities and services sectors expanding. Asia‑Pacific and Latin America grew 11.9%, supported by WNS and Cloud4C, with growth in financial services and consumer goods & retail.

By business vertical, Strategy & Transformation grew 18.6%, Applications & Technology grew 3.5%, and Operations & Engineering grew 26.9%, with double‑digit like‑for‑like growth in Intelligent Business Operations.

As of September 30 2026, Capgemini’s total headcount was 417,500, up 18% year‑on‑year, largely due to the integration of WNS staff. The onshore workforce numbered 141,900 and the offshore workforce 275,600, stable at 66% of total headcount compared to the end of 2025.