Capgemini Q3 Revenues Beat Expectations, Raises 2025 Growth Outlook
AI and cloud demand drives +2.9% constant-currency growth; North America surges +7%, WNS deal boosts M&A impact
Capgemini Group reported consolidated revenues of €5,393 million for the third quarter of 2025, marking a modest +0.3% increase year-on-year on a reported basis but a more robust +2.9% growth at constant exchange rates, surpassing analyst expectations amid steady demand for AI and cloud solutions.
In a statement, Chief Executive Officer Aiman Ezzat attributed the outperformance to the company's AI-powered positioning and strategic initiatives launched a year prior. "The Group delivered a strong Q3, better than expected, thanks to the relevance of our AI-powered business and technology partner positioning... Revenue growth improved in all regions, with a significant acceleration in North America. Demand continued to be driven by cloud, data and AI, with a strong focus on efficiency and optimization," Ezzat said.
The results reflect a selective client investment climate favoring operational efficiency over expansive growth programs, with sustained interest in technology-led initiatives like digital core modernization and generative AI (GenAI). Bookings reached €5,161 million in Q3, up +1.5% at constant rates, yielding a book-to-bill ratio of 0.96—consistent with seasonal norms.
For the first nine months of 2025, revenues stood at €16,500 million, essentially flat at -0.1% reported but up +1.0% at constant exchange rates. At constant rates, Q3 growth accelerated from +0.7% in Q2 across most regions, businesses, and sectors, benefiting from actions taken over the past year to navigate economic uncertainty.
Regional Breakdown
- North America (28% of 2024 revenues): +7.0% growth, fueled by Financial Services, TMT (Telecoms, Media, Technology), and Manufacturing, particularly Life Sciences.
- UK & Ireland (12%): +9.0%, broad-based with strong showings in Financial Services and TMT.
- France (20%): -4.7%, impacted by weakness in Manufacturing.
- Rest of Europe (31%): -1.5%, offset by gains in Public, Consumer Goods & Retail, and Financial Services against softness in Manufacturing and Services.
- Asia-Pacific & Latin America (9%): +13.6%, robust in Financial Services, Manufacturing, Energy & Utilities, and TMT.
Business Segments
At constant exchange rates:
- Strategy & Transformation (9% of 2024 revenues): +0.7%.
- Applications & Technology (62%, core business): +5.7%.
- Operations & Engineering (29%): +1.3%, with solid Business Services growth.
Headcount and Strategic Moves
The Group's workforce expanded to 354,700 as of September 30, 2025, up +4.7% year-on-year, with offshore employees at 211,800 (60% of total). Ezzat highlighted accelerating GenAI integration across services, backed by proprietary platforms, delivery frameworks, and partnerships, leading to strong deal wins in generative and agentic AI.
The recent completion of the WNS acquisition positions Capgemini as a leader in Intelligent Operations, targeting agentic AI-driven business processes, and is now expected to contribute around 2 percentage points to 2025 revenue growth (up from 1 point).
Buoyed by Q3 momentum, Capgemini has revised its full-year targets:
- Revenue growth: +2.0% to +2.5% at constant currency (previously -1.0% to +1.0%).
- Operating margin: 13.3% to 13.4% (narrowed from 13.3% to 13.5%).
- Organic free cash flow: ~€1.9 billion (unchanged).
Ezzat expressed confidence in Q4 organic growth mirroring Q3 levels, emphasizing the company's resilience in a challenging environment. Shares in Capgemini rose over 3% in early Paris trading following the announcement, reflecting investor optimism around its AI strategy and North American surge.
