TLDR: Capgemini reported stronger-than-expected second-quarter revenue growth, with generative AI bookings accounting for 7% of the total, up from 6% in the previous quarter. Despite a slight dip in overall revenue and net profit, the company’s strategic focus on AI and a strong pipeline in generative and agentic AI offerings helped offset broader softness in discretionary IT spending. Capgemini also announced a €2 billion share buyback program.
Capgemini, the French IT services and consulting giant, has reported a resilient performance in the second quarter of 2025, with revenue growth surpassing analyst expectations and a significant increase in bookings related to generative AI. The company’s shares traded higher following the announcement of its Q2 results and a new €2 billion share buyback program.
Second-quarter bookings reached €6.1 billion, marking a 1.5% increase year-on-year at constant currency, with a robust book-to-bill ratio of 1.10x. A key highlight was the growing contribution of generative AI, which accounted for 7% of total bookings in Q2, an increase from 6% in the first quarter. This indicates a strong client demand for AI-powered solutions and underscores Capgemini’s strategic emphasis on artificial intelligence.
For the first half of 2025, revenues stood at €11.107 billion, a slight decrease of 0.3% year-on-year on a reported basis, but an increase of 0.2% at constant currency. Despite a challenging macroeconomic environment and a 13% drop in net profit to €724 million, the adjusted operating margin remained stable at 12.4%. Aiman Ezzat, Chief Executive Officer of the Capgemini Group, stated, ‘Our performance in H1 demonstrates the resilience of the Group’s operating model. We’ve built a strong pipeline in generative and agentic AI, which accounted for more than 7% of Group bookings in Q2. Client demand continues to be driven by efficiency and cost optimisation.’
Regionally, North America, the United Kingdom, and APAC/LATAM demonstrated positive revenue growth, while France and the Rest of Europe experienced declines. Among service lines, Applications & Technology and Strategy & Transformation saw increases of 3.2% and 1.4% respectively, while Operations & Engineering declined by 0.4%. Capgemini’s AI investments have gained momentum with the launch of the Resonance AI Framework and new partnerships, including those with Mistral AI and SAP. These initiatives align with broader industry trends, as 63% of global executives plan to increase AI investments in 2025, according to the Capgemini Research Institute.
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The company also updated its 2025 financial targets, with constant currency revenue growth now projected between -1.0% and +1.0%, an improvement from the previous range of -2.0% to +2.0%. The operating margin target remains unchanged at 13.3% to 13.5%, and organic free cash flow is expected to be around €1.9 billion. The announced €2 billion share buyback program will be fully funded by organic free cash flow, further demonstrating the company’s financial strength and commitment to shareholder returns.
