Capgemini CEO Aiman Ezzat said the French IT company is “clearly pivoting” to facilitate AI adoption, which will fuel sales this year https://t.co/5re6SUniKl ...

Core Viewpoint - Capgemini anticipates that demand related to artificial intelligence will drive growth in 2026, following an increase in orders attributed to AI services in the last quarter of the previous year [1] Group 1 - The company reported a significant uplift in orders during the final quarter of last year, which was primarily driven by AI services [1]

Core Insights - Capgemini reported full-year revenue of 22.47 billion euros ($26.65 billion) for 2025, exceeding its own target due to strong growth in the fourth quarter driven by AI-powered business process services [1][1] - The company achieved a revenue growth of 3.4% at constant exchange rates, surpassing the October guidance of 2% to 2.5% growth [1][1] - Fourth-quarter sales increased by 10.6%, significantly boosted by the contributions from the newly acquired WNS and Clou4C units [1][1] - Generative and agentic AI accounted for over 10% of group bookings in the fourth quarter, up from approximately 5% earlier in the year [1][1] Financial Performance - Full-year revenue reached 22.47 billion euros ($26.65 billion) in 2025, marking a 3.4% growth at constant exchange rates [1][1] - The fourth quarter saw a notable sales surge of 10.6%, indicating strong demand and effective integration of recent acquisitions [1][1] Strategic Developments - The acquisition of WNS and Clou4C has made a "significant contribution" to Capgemini's revenue growth, highlighting the importance of strategic acquisitions in enhancing service offerings [1][1] - The increase in AI-related bookings reflects a growing trend in the industry towards integrating advanced technologies into business processes [1][1]

By Leo Marchandon Feb 13 (Reuters) - French IT services group Capgemini on Friday reported full-year revenue that beat its own target, driven by accelerating ‌fourth-quarter growth as its recently bought WNS unit fuelled demand for ‌AI-powered business process services. Revenue grew 3.4% at constant exchange rates to 22.47 billion euros ($26.65 billion) in 2025, ​exceeding the company's October guidance for 2% to 2.5% growth. Fourth-quarter sales surged 10.6%, with newly acquired WNS and Clou4C making a ...

Core Insights - Capgemini exceeded its revenue growth objectives for 2025, achieving a revenue of €22,465 million, which represents a year-on-year increase of +1.7% and a constant currency growth of +3.4% [8][11] - The company reported a stable operating margin of 13.3% of revenues, with net profit decreasing by -4.2% to €1,601 million [9][15] - Capgemini's strategic focus on AI, cloud, and digital services has driven growth, with generative AI accounting for over 10% of Group bookings in Q4 [4][7] Financial Performance - Revenues for 2025 reached €22,465 million, up +1.7% from 2024, with a constant currency growth of +3.4% [8][11] - Operating profit decreased to €2,199 million, representing 9.8% of revenues, down from 10.7% in 2024 [9][13] - Basic earnings per share fell by -3.7% to €9.46, while normalized earnings per share increased by +5.8% to €12.95 [15] Market Dynamics - The demand for Capgemini's services in cloud, data, and AI has been strong, particularly in North America and the UK, where revenues grew by +7.3% and +10.5% respectively [20][21] - The company has seen a significant increase in bookings, with a total of €24.4 billion for the year, reflecting a book-to-bill ratio of 1.08 [12] - Capgemini's strategic acquisition of WNS has enhanced its capabilities in delivering AI-powered operations [6] Regional Performance - North America accounted for 29% of Group revenues, with a +7.3% increase at constant exchange rates, driven by strong performance in Financial Services [20] - The UK and Ireland region saw a +10.5% revenue increase, primarily from Financial Services and Public sectors [21] - France experienced a revenue decline of -4.1%, attributed to challenges in the Manufacturing and Energy sectors [22] Strategic Initiatives - Capgemini plans to invest approximately €700 million over the next two years for workforce and skills adaptation initiatives [5][38] - The company aims for revenue growth of +6.5% to +8.5% in 2026, with an operating margin target of 13.6% to 13.8% [7][42] - Capgemini is focusing on AI-led transformation programs and intelligent operations to drive future growth [7][10] ESG Performance - Capgemini has made significant progress in its ESG commitments, achieving a 94% reduction in Scope 1 and 2 emissions and reaching 100% renewable electricity for all operations [33][34] - The company aims to maintain a gender balance of 40% women in its global workforce and has achieved 30.5% in executive leadership positions [35] - Capgemini's commitment to responsible business practices is reflected in 72% of total purchases made with ESG-compliant suppliers [36]

Core Insights - The focus of sustainability efforts by European enterprises is shifting from regulatory compliance to achieving measurable financial and operational outcomes [1] - European firms are aligning their strategies with the renewable energy transition to manage energy exposure, support decarbonization, and capture new growth opportunities [1] Group 1: Sustainability Practices - Enterprises are investing in integrated environmental, social, and governance (ESG) data architectures that connect sustainability information across various functions such as finance, procurement, HR, and operations [1] - Organizations are seeking solutions for supply chain and product-level transparency to gain deeper insights into carbon emissions and workforce practices [1] - Digital sustainability solutions are being adopted as the region's energy mix shifts toward renewables and emissions decline [1] Group 2: Market Trends and Provider Insights - The digital sustainability market in Europe is maturing, with providers focusing on clear, outcome-driven use cases [1] - Enterprises are looking for providers that can deliver concrete environmental, social, and economic outcomes through transparent, data-driven models [1] - The report evaluates 70 unique providers across three quadrants, naming leaders such as Accenture, Capgemini, and IBM in multiple categories [1] Group 3: Technology and Data Integration - By integrating sustainability data with real-time decision-support tools, organizations are gaining visibility into industrial processes, which supports cost control and reduces environmental impact [1] - Providers are facilitating this shift with data-driven blueprints and operating models that clarify roles and responsibilities across various functions [1] - The deployment of GenAI is noted for producing qualitative narratives for corporate sustainability reporting [1]

Core Insights - Capgemini is enhancing its strategic partnership with Microsoft to provide clients with a comprehensive managed cloud service model that integrates sovereignty, compliance, and business continuity into digital transformation [1][3] Group 1: Partnership and Offerings - The collaboration aims to deliver end-to-end sovereign solutions that facilitate the adoption of Microsoft Sovereign Cloud and innovative AI technologies [1][2] - Capgemini will assist clients in defining and operationalizing their digital sovereignty strategy, including risk assessments and actionable recommendations [2][4] - The partnership will focus on industry-specific solutions across sectors such as financial services, public sector, defense, telecommunications, life sciences, manufacturing, and national critical infrastructure [4][5] Group 2: Key Features of the Solutions - Sovereignty-by-design will ensure AI-led transformations comply with local laws and industry regulations, including tools for data classification and legacy system modernization [4][5] - Intelligent risk and compliance management will provide a comprehensive view of sovereignty and compliance across various cloud environments, enhancing regulatory compliance [4][5] - Continuity and operational resilience will support organizations in maintaining business operations during disruptions, with pre-approved resiliency scenarios [4][5] Group 3: Security and Data Protection - The partnership will offer AI-powered cyber defense and encryption services tailored for sovereign environments, including data confidentiality and real-time threat detection [5] - Capgemini and Microsoft have a long-standing partnership of over two decades, supporting clients in their cloud transformation journeys [5][6]

Core Insights - Accenture plc is a global professional services company providing strategy, consulting, digital, technology, and operations services, operating in over 120 countries and competing with firms like IBM, Deloitte, and Capgemini [1] Stock Performance - Accenture's stock recently closed at $236.76, reflecting a 1.6% decline from the previous close, underperforming compared to the broader market where the S&P 500 rose by 0.47% [3] - The company's shares have decreased by 14.27% prior to the recent session, indicating underperformance against the Computer and Technology sector and the S&P 500 [3] Insider Transactions - Sweet Julie Spellman, Accenture's CEO, sold 217 shares of Class A ordinary shares at $236.11 each, leaving her with 21,095 shares [2][6] Upcoming Earnings Report - The upcoming earnings report is expected to show earnings per share (EPS) of $2.87, a 1.77% increase from the same quarter last year, with projected revenue of $17.74 billion, a 6.51% rise compared to the previous year [4] - For the full year, earnings are anticipated to be $13.87 per share with total revenue expected to reach $73 billion [4] Financial Metrics - Accenture has a price-to-earnings (P/E) ratio of approximately 19.60 and a price-to-sales ratio of about 2.11, indicating its valuation metrics [5] - The enterprise value to sales ratio is around 2.09, and the enterprise value to operating cash flow ratio is approximately 12.21, with an earnings yield of about 5.10% [5] - The debt-to-equity ratio is approximately 0.27, suggesting moderate debt levels, while the current ratio of about 1.41 indicates the company can cover its short-term liabilities with short-term assets [5]

Core Insights - Capgemini's sovereign-ready cloud and AI solutions are now available on the AWS European Sovereign Cloud, which is fully located and operated within the EU, enabling European clients to meet evolving digital sovereignty requirements while modernizing and innovating [1][3] Group 1: Sovereignty and Data Control - Rapidly evolving sovereignty and data-control requirements are reshaping organizational approaches to trust, resilience, and competitiveness, with increased demand for oversight of sensitive data and critical workloads [2] - The AWS European Sovereign Cloud expands options for clients with stringent sovereignty needs, allowing them to turn these requirements into strategic advantages [3] Group 2: Strategic Implementation - Organizations can assess their sovereignty requirements and risk profiles before defining architectures or operating models, leading to informed decisions regarding sovereign control and infrastructure [4] - Capgemini is developing industry-specific sovereign solutions on the AWS European Sovereign Cloud to facilitate adoption in regulated sectors [4] Group 3: Partnership Benefits - The collaboration between Capgemini and AWS aims to support clients with high sovereignty needs while providing access to continuous innovation [5] - Capgemini's extensive experience in secure cloud architectures positions it well to help clients navigate the evolving landscape of digital sovereignty [5] Group 4: Organizational Goals - Together, Capgemini and AWS can help organizations modernize critical workloads with EU-only operations, strengthen compliance, improve resilience, and innovate within sovereignty-aligned environments [6]

Investment Rating - The report indicates a positive outlook for the South East office market, with a focus on high-quality, amenity-rich assets, suggesting a favorable investment environment for the coming years [5][15]. Core Insights - 2025 is projected to achieve the highest annual take-up figures since 2019, with a total of 3.4 million sq ft leased, reflecting an 8% increase compared to 2024 [7]. - The demand is primarily driven by the Financial and Business Services sector, accounting for 26% of total take-up, followed closely by the TMT sector at 23% [7]. - Grade A accommodation represented 79% of all take-up in 2025, highlighting a continued flight to quality among occupiers [7]. - Availability in the market decreased to 16.2 million sq ft, with a notable contraction in prime segments [7]. - The development pipeline remains limited, with 1.8 million sq ft under construction, primarily concentrated in Cambridge and West London [7][15]. Summary by Sections Leasing Overview - Total take-up for 2025 reached 3,374,313 sq ft, which is 8% higher than the five-year average [4]. - Active demand at year-end totaled 3.95 million sq ft, with Financial and Business Services again representing 26% of this demand [7]. - Availability decreased to 16,181,056 sq ft, a 12.3% reduction compared to the five-year average [4]. Investment Overview - Investment volumes for 2025 were £1.3 billion, which is 43% lower than the ten-year average [9]. - The market saw 112 deals completed in 2025, which is 15% higher than the ten-year average [15]. - Prime office yields in the South East remained at 7.00%, indicating attractive opportunities for investors [15]. Market Dynamics - The report notes a significant increase in rental prices, with 40% of markets in the South East registering an uplift, particularly in Cambridge and Oxford, which saw rental growth of 27% and 16% respectively [7]. - The overall vacancy rate improved to 10.2% in Q4 2025, down from 10.5% in Q4 2024, with Grade A vacancy decreasing to 6.6% [7]. - The report emphasizes the importance of high-quality space, as evidenced by the strong demand for Grade A accommodation [7][15].