Capgemini’s third-quarter numbers show more resilience than recovery. The company reported €5.39 billion in revenue for Q3 2025, up 2.9% at constant exchange rates but almost flat on a reported basis, reflecting weak global tech spending and continued softness in Europe.
Despite the tepid demand, Capgemini raised its full-year growth forecast to 2–2.5% and slightly narrowed its margin outlook to 13.3–13.4%.
CEO Aiman Ezzat called it a “strong Q3” and credited the company’s “AI-powered positioning” for the improvement, but most of the growth came from North America and select sectors like financial services and telecom. France, one of its biggest markets, saw revenues drop 4.7%, while the rest of Europe declined 1.5%, showing that its turnaround is uneven.
Bookings rose just 1.5% in constant currency to €5.16 billion, with a book-to-bill ratio of 0.96, a sign that new deals are only keeping pace with revenue.
Ezzat said that the French IT consulting firm is accelerating the integration of generative AI across its service portfolio to enable clients to achieve tangible business value. The company’s investments in proprietary platforms, delivery frameworks, and talent, combined with strategic partnerships, he said is positioning it as a leader in AI.
Capgemini’s headcount rose 4.7% year-on-year to 354,700, with 60% offshore, but that increase may weigh on margins in slower markets. Its cash flow target of €1.9 billion remains unchanged, hinting at limited flexibility for further investment.
While Capgemini’s push to brand itself as an AI and cloud transformation leader has helped steady growth, the underlying demand remains soft, especially in Europe. The raised guidance looks more like a confidence move than a reflection of a broad rebound.
“The group delivered a strong Q3, better than expected, thanks to the relevance of our AI-powered business and technology partner positioning and the targeted actions initiated a year ago, in a demand environment that is largely unchanged,” Ezzat said.
According to Ezzat, 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.
This is reflected in robust deal wins in generative and agentic-AI, he added. Following the completion of its acquisition of WNS, Capgemini said it now leads the fast-growing intelligent operations market, addressing client demand for agentic AI-powered business operations.
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