Capgemini (CAP) Q2 2026 earnings summary

Executive summary

• H1 2026 revenue reached €12,082 million, up 11.3% year-on-year at constant currency (8.8% reported), driven by strong AI demand, market share gains, and recent acquisitions, notably WNS and Cloud4C.

• Bookings totaled €12,602 million, with a book-to-bill ratio of 1.04, reflecting solid commercial momentum and double-digit growth in Intelligent Business Operations.

• AI was the primary driver of new demand, with dedicated enterprise hubs and expanded offerings, especially in North America (+19.8% YoY) and UK & Ireland (+21.1% YoY).

• Recent acquisitions contributed to the launch of Intelligent Business Operations, expanding the opportunity pipeline to €13.3 billion and driving double-digit like-for-like growth.

• Fit for Growth program is progressing, with restructuring costs front-loaded in H1 and benefits expected from H2 and through 2027.

Financial highlights

• Operating margin reached 12.5%, up 10 bps year-on-year, with North America and UK & Ireland showing strong profitability (16.5% and 18.1% respectively).

• Operating profit declined 10.1% to €878 million due to higher restructuring and integration costs.

• Net profit (Group share) fell 31.3% to €498 million, with basic EPS at €2.96 and normalized EPS at €5.29, mainly due to higher restructuring and tax expenses.

• Organic free cash flow was €37 million, down from €60 million in H1 2025, consistent with seasonal patterns.

• Gross margin was 26.1%, down 30 bps year-on-year, mainly due to underutilization in France and rest of Europe.

Outlook and guidance

• Upgraded 2026 constant currency revenue growth target to 8.5%-9.0% (previously 6.5%-8.5%), with inorganic contribution estimated at 5 points.

• Operating margin guidance confirmed at 13.6%-13.8%, representing a 30-50 bps improvement year-on-year.

• Organic free cash flow target for the full year confirmed at €1.8-1.9 billion, factoring in €200 million higher restructuring outflows.

• 2028 ambition: 3-year revenue CAGR of 5.5%-7.5%, operating profit margin before acquisition-related expenses to reach 12.1%-12.3%, and cumulative organic free cash flow above €6 billion for 2026-2028.