Capgemini Confirms Strong Momentum in Q1 2026, Driven by AI and Acquisitions
Capgemini announced its Q1 2026 results on Thursday, posting revenues of EUR 5,943 million, up 11% at constant exchange rates. This performance, driven by demand for artificial intelligence and the integration of acquisitions WNS and Cloud4C, exceeds the growth pace projected in the annual outlook (6.5% to 8.5%). However, the group warns that an additional EUR 200 million in restructuring will impact cash generation in 2026.
Double-Digit Growth, Fueled by AI and Outsourced Operations
In the first quarter of 2026, Capgemini recorded an 11% growth at constant exchange rates, significantly surpassing the targeted pace of 6.5% to 8.5% for the full year. At current exchange rates, growth stood at 7%, reflecting a negative impact of 4 percentage points due to currency fluctuations. Order intake reached EUR 6,054 million, up 6.2% at constant exchange rates, achieving a book-to-bill ratio of 1.02. The group highlighted that contracts related to generative and agent-based AI accounted for over 11% of the quarter's orders. The acquisition of WNS, completed in the fourth quarter of 2025, significantly contributed to this momentum, especially through the Operations & Engineering branch, which grew by 25.2% and includes Digital Business Process Services with double-digit growth.
Diverse Geographies: Asia and North America Lead, France Struggles
The geographic breakdown of results shows divergent trajectories. Asia-Pacific and Latin America recorded the strongest growth at +26.9% at constant exchange rates. North America, accounting for 29% of the group's revenue, grew by 20.7%, while the United Kingdom and Ireland saw a +21.7% increase. In France, which accounted for 19% of the group's revenue in 2025, activity slightly declined by 1%. Growth in Financial Services and Energy & Utilities offset declines in Consumer Goods & Retail and the Public Sector. The rest of Europe progressed modestly by 1.7%. In terms of sectors, Financial Services posted a 21.9% increase and remain a major growth driver, while the Industry sector, representing 25% of activity, advanced more modestly at 3.5%.
Operating Margin Targeted Between 13.6% and 13.8%, Under the Weight of Adjustments
For the fiscal year 2026, Capgemini aims for growth at constant exchange rates between 6.5% and 8.5%, with an operating margin between 13.6% and 13.8%. The group also targets organic free cash flow generation of approximately EUR 1.8 to 1.9 billion, a goal that considers an increase of about EUR 200 million in disbursements related to restructuring compared to 2025, as part of the Fit-for-growth initiatives. The total workforce of the group stood at 421,000 employees as of March 31, 2026, up by 78,300 people (23%) year-on-year, mainly due to the integration of WNS teams. The group noted that the workforce decreased by 2,400 people compared to December 2025, with 66% of the staff working offshore. For investors, a key focus remains Capgemini's ability to meet its operating margin target of 13.6% to 13.8%, while maintaining organic free cash flow generation of EUR 1.8 to 1.9 billion despite the expected increase in disbursements related to restructuring.
