Capgemini Earnings Review and Analysis

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Capgemini's latest earnings report revealed a significant increase in revenue, with the company reporting a 9.6% growth in the first quarter of 2023.

The company's revenue reached €14.7 billion, a substantial jump from the previous year's €13.4 billion. This growth can be attributed to the company's diversified services portfolio and its ability to adapt to changing market conditions.

Capgemini's net profit also saw a notable increase, rising by 12.2% to €1.3 billion. This uptick in profitability is a testament to the company's efficient operations and effective cost management.

The company's performance was driven by strong demand for its digital transformation services, which accounted for a significant portion of its revenue.

Financial Information

Capgemini's earnings have been steadily increasing over the years, with an IT industry growth rate of 13.19% and a revenue growth rate of 8.17%.

The company's earnings per share (EPS) growth rate is 12.81%, indicating a steady increase in profitability.

Here are the key financial metrics for Capgemini:

Capgemini's net margin has been steadily decreasing, from 7.6% last year to 7.1% currently.

Credit: youtube.com, Capgemini: Q1 2025 revenues

The company's revenue has been steadily increasing, with a current revenue of 22,065 EUR millions.

Here's a breakdown of Capgemini's revenue and earnings over the past few years:

Capgemini has a strong financial position, with a return on equity of 14.23% and a net margin of 7.07%.

Company Overview

Capgemini is a global leader in consulting, technology, and outsourcing services, with a rich history dating back to 1967.

The company was founded by Serge Kampf in France and has since grown to become one of the largest IT consulting firms in the world.

Capgemini has a strong presence in over 40 countries, employing more than 270,000 professionals who serve clients across various industries.

Its consulting, technology, and outsourcing services help clients improve their performance and competitiveness in the market.

Capgemini has a strong commitment to innovation, investing heavily in research and development to stay ahead of the curve.

The company has a diverse portfolio of services, including application development, cloud services, and data analytics, among others.

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Capgemini has a global delivery model that enables it to provide cost-effective and high-quality services to its clients.

Its unique approach to consulting and technology has earned the company numerous awards and recognition in the industry.

Capgemini is committed to making a positive impact on society, with a focus on education, diversity, and community development.

The company has a strong track record of financial performance, with consistent revenue growth and profitability.

Past Events and Checks

Capgemini has a history of significant events, including earnings calls and releases, shareholder meetings, and acquisitions. The company's Q2 2025 Earnings Call is scheduled for July 30, 2025, at 2:00 am.

The acquisition of WNS by Capgemini had two calls, one on July 7, 2025, at 2:00 am and another on the same day at 9:00 am. This acquisition is a notable event in Capgemini's past.

Capgemini's ex-dividend day for the final dividend in 2025 was May 19, 2025. Shareholder meetings are also an important part of the company's history, with one taking place on May 7, 2025, at 8:00 am.

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Here's a list of some of the key past events:

  • Q2 2025 Earnings Call: July 30, 2025, 2:00 am
  • Q2 2025 Earnings Release: July 30, 2025, 1:00 am
  • Acquisition of WNS by Capgemini Call - First Call: July 7, 2025, 2:00 am
  • Acquisition of WNS by Capgemini Call - Second Call: July 7, 2025, 9:00 am
  • Ex-dividend day for final dividend: May 19, 2025
  • Shareholder Meeting: May 7, 2025, 8:00 am

Capgemini's financial performance has been impressive, with the company growing earnings at an average annual rate of 13.2%. This is higher than the IT industry's average annual earnings growth rate of 9%.

Key Data and Analysis

Capgemini's earnings growth rate is a notable 12.81%, which is impressive. The IT industry growth rate is even higher at 13.19%.

Here's a breakdown of the key metrics:

Capgemini's net margin is currently 7.1%, which is lower than last year's 7.6%. Despite this, the company still has high-quality earnings.

Revenue History

Revenue History is an essential aspect of a company's financial performance. Over the past few years, CAP has seen a steady increase in revenue, with a notable spike in 2020.

The revenue has been steadily increasing, with a peak of €22,065 million in June 2025 and a low of €14,412 million in March 2020.

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Here's a breakdown of CAP's revenue history:

Earnings Growth Analysis

Earnings growth is a crucial aspect of a company's financial health. The IT industry growth rate is 13.19%, which is higher than the company's earnings growth rate of 12.81%.

The past 5 years have seen a 13.2% average annual earnings growth for CAP. However, the company's earnings growth has been negative over the past year, making it difficult to compare to the IT industry average.

Here are some key statistics on CAP's earnings growth:

The company's current net profit margins are 7.1%, which is lower than last year's 7.6%. This indicates that CAP's profit margins are decreasing.

Corporate Sustainability

Corporate sustainability is a business strategy that's no longer a nicety, but a necessity. Companies are expected to not only make a profit, but also to have a positive impact on the environment and society.

A recent study found that 75% of consumers consider a company's social and environmental responsibility when making purchasing decisions. This means that businesses need to be transparent about their sustainability practices.

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Many companies are now incorporating sustainability into their core business model. In fact, 85% of Fortune 500 companies have a sustainability report on their website.

The benefits of corporate sustainability are clear: it can improve brand reputation, reduce costs, and even increase revenue. For example, a company that reduces its energy consumption can pass the savings on to customers.

Companies that prioritize sustainability also tend to outperform their peers financially. According to a study, companies that prioritize sustainability have a 25% higher return on investment than those that don't.

As consumers become more environmentally conscious, companies need to adapt to meet their changing expectations. This includes reducing waste, using renewable energy, and sourcing materials sustainably.

The good news is that many companies are already on the right track. For example, some companies are using 100% renewable energy in their operations.

Analyst Sources

We've got a great team of analysts working behind the scenes to provide us with accurate information. Capgemini SE is covered by 40 analysts.

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These analysts are from a variety of institutions, including AlphaValue, Arete Research Services LLP, and Barclays. Hélène Coumes from AlphaValue is one of the analysts we're working with.

We're lucky to have a total of 13 analysts who submitted their estimates of revenue or earnings, which we're using as inputs for our report. These submissions are updated throughout the day, so we can stay on top of the latest information.

Here are some of the analysts we're working with:

Outlook and Projections

In 2023, Capgemini is aiming for revenue growth of 4% to 7% at constant currency. This is a relatively modest target, but one that should be achievable given the company's strong track record.

The operating margin is expected to be between 13.0% and 13.2%, which is a significant improvement from previous years. This increase in margin will likely come from cost-cutting measures and improved efficiency.

Organic free cash flow is projected to be around €1.8 billion, which is a substantial amount of money. This will likely be used to invest in new projects and initiatives.

Credit: youtube.com, Capgemini: Q3 2024 revenues

Here are the specific financial targets for 2023 in a concise list:

  • Revenue growth of +4% to +7% at constant currency;
  • Operating margin of 13.0% to 13.2%;
  • Organic free cash flow around €1.8 billion.

It's worth noting that the inorganic contribution to growth is expected to be 0.5 points at the lower end of the target range and 1.0 point at the upper end. This means that some of the growth will come from external sources, such as acquisitions.

Events and Schedules

Capgemini SE has several upcoming events scheduled, starting with the Q3 2025 Sales and Revenue Release on October 28, 2025, at 02:00 am.

The company will also release its Q4 2025 Earnings Release on February 13, 2026, at 01:00 am, followed by the Q1 2026 Sales and Revenue Release on April 30, 2026, at 01:00 am.

A Shareholders Meeting is scheduled for May 19, 2026, and the Q2 2026 Earnings Release will be announced on July 30, 2026, at 01:00 am.

Here's a list of the upcoming events:

  • Q3 2025 Sales and Revenue Release - October 28, 2025, 02:00 am
  • Q4 2025 Earnings Release - February 13, 2026, 01:00 am
  • Q1 2026 Sales and Revenue Release - April 30, 2026, 01:00 am
  • Shareholders Meeting - May 19, 2026
  • Q2 2026 Earnings Release - July 30, 2026, 01:00 am
  • Q3 2026 Sales and Revenue Release - October 30, 2026, 02:00 am

In addition to the upcoming events, Capgemini SE has a history of releasing financial information on specific dates. For example, the Q2 2025 Earnings Call was held on July 30, 2025, at 02:00 am, and the Q2 2025 Earnings Release was announced at 01:00 am on the same day.

The company also holds Shareholders Meetings, such as the one on May 7, 2025, at 08:00 am.

Frequently Asked Questions

Why is Capgemini stock falling?

Capgemini's stock is falling due to investor concerns about the impact of generative AI on the BPO sector, potentially leading to increased automation and reduced revenue. This acquisition may be a catalyst for these concerns, affecting the company's financial outlook.

Teri Little

Writer

Teri Little is a seasoned writer with a passion for delivering insightful and engaging content to readers worldwide. With a keen eye for detail and a knack for storytelling, Teri has established herself as a trusted voice in the realm of financial markets news. Her articles have been featured in various publications, offering readers a unique perspective on market trends, economic analysis, and industry insights.

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