Capgemini lifts revenue forecast as North America and AI demand drive growth

Core Viewpoint - Capgemini raised its growth forecast due to strong demand for AI solutions and robust performance in North America, with third-quarter revenue increasing by 2.9% in constant currency terms [1][2]. Group 1: Financial Performance - The company reported third-quarter revenue of 5.39 billion euros ($6.29 billion) and quarterly order bookings of 5.16 billion euros [2]. - Capgemini now expects annual revenue growth between 2% to 2.5%, up from a previous guidance of -1% to +1% [2]. - The operating margin forecast has been narrowed to between 13.3% and 13.4%, compared to the earlier range of 13.3% to 13.5% [2]. Group 2: Regional Performance - North America is identified as the group's growth driver, accounting for 28% of global revenue, with a quarterly revenue growth of 7% in the region [3]. - The growth in North America is attributed to sectors such as financial services, telecoms, media and technology, and particularly life sciences [3]. Group 3: Strategic Initiatives - The company is experiencing increased demand for AI solutions, which influenced its recent $3.3 billion acquisition of technology outsourcing firm WNS [3]. - Capgemini has begun signing significant contracts and has promising contracts in the pipeline expected to be finalized by the end of the year [4]. - The company's workforce increased by 4.7% to 354,700 employees at the end of September compared to the previous year [4].