Capgemini upgraded its full-year 2026 revenue growth outlook after reporting stronger-than-expected first-half growth supported by acquisitions, demand for artificial intelligence-led transformation and improving business activity across several major geographic markets. The technology and consulting group generated first-half revenue of €12.08 billion, an increase of 8.8% from €11.11 billion during the same period in 2025.
Revenue increased 11.3% at constant exchange rates, which removes the effect of currency movements to provide a clearer comparison of underlying business activity. Foreign exchange fluctuations reduced reported growth by approximately 2.5 percentage points during the first half, while acquisitions, particularly WNS and Cloud4C, contributed materially to Capgemini’s expansion.
The company now expects constant-currency revenue growth of approximately 8.5% to 9% for the full year. Its previous target called for growth of approximately 6.5% to 8.5%. Capgemini estimates that acquisitions will contribute around five percentage points to its 2026 growth, compared with its previous forecast of approximately 4.5 to five percentage points.
Capgemini maintained its operating margin target of 13.6% to 13.8% and its organic free cash flow target of approximately €1.8 billion to €1.9 billion. The cash flow guidance incorporates an expected increase of around €200 million in restructuring-related cash payments compared with 2025 as the group implements its Fit-for-Growth program.
First-half operating margin increased 9.3% to €1.51 billion from €1.38 billion. The adjusted operating margin rate improved by 10 basis points to 12.5% of revenue from 12.4% a year earlier, reflecting stronger profitability in North America and the growing contribution of Capgemini’s higher-growth operations.
Capgemini’s operating margin is an adjusted performance measure that excludes items classified as other operating income and expenses. Those exclusions include restructuring costs, acquisition and integration expenses, stock-based compensation, amortization of intangible assets created through business combinations and certain nonrecurring gains or losses.
Operating profit, which includes those expenses, declined 10.1% to €878 million from €976 million. Operating profit represented 7.3% of revenue, down from 8.8% during the first half of 2025. The decline primarily reflected an increase in restructuring charges related to the Fit-for-Growth initiatives.
Other operating income and expenses resulted in a net expense of €628 million, compared with €401 million a year earlier. Capgemini expects the cost reductions and operating improvements associated with the restructuring program to build progressively during the second half of 2026.
Net profit attributable to shareholders declined 31.3% to €498 million from €724 million. Basic earnings per share fell 30.6% to €2.96 from €4.26, while normalized earnings per share decreased 11.9% to €5.29 from €6.00.
Normalized profit adjusts reported earnings for items included in other operating income and expenses after accounting for taxes. Capgemini reported normalized first-half profit of €890 million, down 12.7% from €1.02 billion during the comparable period.
The company’s net financial expense was €65 million, compared with net financial income of €16 million in the previous year, primarily because of higher debt. Its effective income tax rate increased to 37.5% from 26.2%, although Capgemini said the first-half rate included items that may make it unrepresentative of the rate expected for the full year.
Organic free cash flow was €37 million, compared with €60 million in the first half of 2025. First-half cash generation is generally affected by the timing of working capital movements and other seasonal factors, while Capgemini continues to expect substantially greater cash generation across the full year.
Bookings reached €12.60 billion during the first half, producing a book-to-bill ratio of 1.04. Second-quarter bookings increased 9.2% year over year to €6.55 billion, with a book-to-bill ratio of 1.07. A ratio above one indicates that the value of new contracts signed during the period exceeded recognized revenue.
Second-quarter revenue totaled €6.14 billion and increased 10.5% on a reported basis. Constant-currency growth reached 11.6%, compared with 11% during the first quarter, as France returned to growth and Capgemini continued to record strong expansion in North America, the United Kingdom and Ireland, and Asia-Pacific and Latin America.
North American first-half revenue rose 19.8% at constant exchange rates to €3.50 billion, supported by demand from financial services and manufacturing clients. The region’s operating margin increased to 16.5% from 16.3%.
Revenue in the United Kingdom and Ireland increased 21.1% at constant exchange rates to €1.75 billion, with strength across public-sector, financial services, consumer goods and retail customers. The region maintained an operating margin of 18.1%.
France generated revenue of €2.14 billion, representing constant-currency growth of 0.4%. The region returned to growth during the second quarter as improved activity in manufacturing and financial services offset weaker public-sector demand. Its operating margin declined to 7.7% from 10%.
Revenue from the rest of Europe increased 2.6% at constant exchange rates to €3.51 billion. Public-sector, services, consumer goods and retail activity offset continued weakness in manufacturing, while the region’s operating margin declined to 9.6% from 10.4%.
Asia-Pacific and Latin America delivered the fastest regional growth, with revenue increasing 26% at constant exchange rates to €1.19 billion. Financial services, consumer goods and retail, and energy and utilities supported the performance, while the operating margin expanded to 14.2% from 10.1%.
Across its business lines, Strategy & Transformation revenue increased 9.2% at constant exchange rates. Applications & Technology, Capgemini’s largest business, grew 5% as clients modernized legacy systems and began investing in technology foundations designed to support agentic AI.
Operations & Engineering revenue increased 24.7%, supported by Intelligent Business Operations and the integration of WNS. This business combines technology, engineering, infrastructure, cloud and business-process capabilities intended to help clients automate and redesign operational workflows.
Capgemini ended June with 417,600 employees, an increase of 68,200, or 20%, from a year earlier because of the addition of WNS employees. Headcount declined by 5,800 from the end of 2025, including reductions in both onshore and offshore workforces. Offshore employees represented approximately 66% of total headcount.
The group paid €570 million in dividends during the first half, equivalent to €3.40 per share, and spent €315 million on share repurchases. Capgemini also repaid an €800 million bond at maturity in April and issued a new €800 million bond in May.
Net debt increased to €6.45 billion at June 30, 2026, from €5.31 billion at the end of 2025 and €2.80 billion a year earlier. Capgemini held approximately €2.6 billion in cash, cash equivalents and cash-management assets against €9.1 billion of borrowings. The higher debt reflects, in part, financing associated with the company’s acquisition activity.
KEY QUOTE:
“Our first-half performance demonstrates that the strategy we outlined at our Capital Markets Day is delivering results.”
Aiman Ezzat, Chief Executive Officer of Capgemini
