Q1 2025 Revenues

Core Insights - Capgemini Group reported Q1 2025 revenues of €5,553 million, reflecting a growth of +0.5% at current exchange rates and a slight decline of -0.4% at constant exchange rates, indicating a stable performance amidst challenging macroeconomic conditions [2][4]. Revenue Performance - The revenue growth of +0.5% at current exchange rates represents a +0.7 points improvement compared to Q4 2024, primarily driven by North America and the United Kingdom and Ireland regions [4]. - North America revenues grew by +0.8% year-on-year, supported by the Telecoms, Media, and Technology (TMT) and Financial Services sectors, while the Manufacturing sector experienced a decline [6]. - The United Kingdom and Ireland region saw a revenue increase of +3.9% year-on-year, with contributions from the Public Sector and Energy & Utilities sectors [7]. - France's revenues declined by -4.9% year-on-year, primarily due to weaknesses in the Manufacturing and Energy & Utilities sectors [8]. - The Rest of Europe region experienced a revenue decline of -2.3% year-on-year, while the Asia-Pacific and Latin America region reported solid growth of +7.6% year-on-year, driven by the Public Sector and TMT sectors [9]. Business Segment Performance - At constant exchange rates, Strategy & Transformation consulting services grew by +1.2% year-on-year, while Applications & Technology services, which constitute 62% of total revenues, increased by +1.9% year-on-year [10][32]. - Operations & Engineering services, accounting for 29% of total revenues, saw a decline of -2.6% year-on-year [10][32]. Bookings and Market Trends - Total bookings for Q1 2025 reached €5,884 million, reflecting a year-on-year increase of +2.8% at constant exchange rates, with a book-to-bill ratio of 1.06, above the historical average [12]. - The company is capitalizing on the growing demand for generative AI and agentic AI, which accounted for over 6% of bookings in Q1 [3]. Headcount and Workforce - As of March 31, 2025, Capgemini's total headcount was 342,700, representing a year-on-year increase of +1.6% [11]. - Onshore headcount decreased by -1.4%, while offshore headcount increased by +3.9%, making up 58% of total employees [11]. Financial Outlook - Capgemini confirmed its financial objectives for 2025, maintaining a cautious stance due to the current international trade and tariff context [4]. - The financial targets for 2025 include revenue growth of -2.0% to +2.0% at constant currency, an operating margin of 13.3% to 13.5%, and organic free cash flow of around €1.9 billion [15].