European stocks turned in a mixed performance for a third straight session, with investors mostly reacting to corporate earnings updates and regional economic data on Friday. Soft inflation data from the U.S. raised optimism about some monetary easing by the Federal Reserve and prompted some buying.The pan European Stoxx 600 ended down 0.13%. The U.K.'s FTSE 100 climbed 0.42% and Germany's DAX ended 0.25% up, while France's CAC 40 closed lower by 0.35%. Switzerland's SMI gained 0.52%.Among other in Europe, ...

The major U.S. index futures are currently pointing to a slightly higher open on Friday, with stocks likely to regain ground following the sell-off seen in the previous session.The futures had been pointing to continued weakness on Wall Street but regained ground following the release of the Labor Department's highly anticipated report on consumer price inflation in the month of January.The report showed consumer prices rose by slightly less than expected on a monthly basis, while the annual rate of growth ...

Core Viewpoint - Capgemini shares have declined by 25% this year, leading to a significant drop in its price-to-earnings ratio to single digits, raising concerns among investors regarding the impact of artificial intelligence on the technology consulting sector [1] Company Summary - The decline in Capgemini's share value reflects broader investor apprehensions about the potential disruptions caused by artificial intelligence within the technology consulting industry [1] - The current price-to-earnings ratio of Capgemini is now in single digits, indicating a potential undervaluation or market skepticism about future earnings growth [1] Industry Summary - The technology consulting industry is facing increased scrutiny as investors evaluate the implications of artificial intelligence on traditional business models and revenue streams [1] - The significant drop in share prices across the sector may signal a shift in investor sentiment, with a focus on how companies adapt to technological advancements [1]

Core Viewpoint - Capgemini CEO Aiman Ezzat rejects the notion of complete technological sovereignty in Europe, emphasizing the need for a balanced approach to digital autonomy that accommodates both sovereignty and global competitiveness [1] Group 1: Technological Sovereignty - Ezzat states that "there is no such thing as absolute sovereignty," highlighting that no entity possesses complete control over the entire value chain necessary for service delivery [1] - The current European tech policy reflects a tension between the desire for autonomy and the reality of reliance on U.S. tech giants like Amazon, Google, and Microsoft [1] - Ezzat outlines a four-layer framework for digital autonomy: data, operations, regulation, and technology, indicating that Europe has independence at the first three levels but lacks complete technological independence due to U.S. dominance [1] Group 2: Strategic Partnerships - Instead of pursuing full autonomy, Ezzat advocates for finding "the right sovereignty solution based on the use case, the client environment, the government" [1] - Capgemini has formed partnerships with U.S. hyperscalers such as AWS, Google Cloud, and Microsoft to provide "sovereign" AI solutions, which are cloud services offered by a European company but utilize American infrastructure [1] - The company is also engaging with European AI firms like France-based Mistral as part of its strategy to navigate the complexities of technological sovereignty [1] Group 3: Reputational Challenges - Capgemini is facing reputational issues related to government contracts, exemplified by its decision to sell its U.S. subsidiary, Capgemini Government Solutions, following backlash over a $4.8 million contract with U.S. Immigration and Customs Enforcement [1]

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]