Aiman Ezzat, Chief Executive Officer, Capgemini Group
Capgemini profit fell 15 per cent in H1 of 2025 to €976 million (₹9,820.6 crore) as operating income and expenseswent up by €164 million (₹1,650.2 crore) year-on-year, driven by higher restructuring costs in the first half of the year.
The company’s revenuesdipped slightlyby 0.3 per cent year-on-year on a reported basis and increased by 0.2 per cent at constant exchange rates. Officials said the demand remained soft, as anticipated, in a volatile economic environment. Capgemini Group’s total headcount stands at 349,400 as of June 30, 2025, of which 206,400 employees (59 per cent) are offshore.
However, revenues in the Asia-Pacific and Latin America region (9 per cent of 2024 revenues) increased by 8.7 per cent, driven by double-digit growth in financial services. The Consumer Goods & Retail sector in Latin America and the Telecoms, Media and Technology (TMT) sector in Asia-Pacific also posted solid growth over the period. The region reported an operating margin of 10.1 per cent, slightly down from the first half of last year. Overall, the operating margin went down by 0.5 per cent annually.
“In the first half of the year, clients remained focused on driving efficiency through cost transformation programs and discretionary spend was still muted. In that context, Capgemini continues to enjoy strong traction in Cloud, Data & AI and Digital Core. In addition, the Group starts to see in its pipeline growing momentum from Defense and Sovereignty, Generative AI and Agentic AI, and Intelligent Operations,” it said.
AI and cloud services gain traction
Bookings increased by 2.1 per cent annually at constant exchange rates, resulting in a strong book-to-bill ratio of 1.08 for the period. Organic free cash flow generation amounted to €60 million. In line with its capital allocation policy, the Group paid dividends of €578 million (€3.40 per share) in H1 2025 for the fiscal year 2024.
Aiman Ezzat, Chief Executive Officer of the Capgemini Group, said, “Client demand continues to be driven by efficiency and cost optimization. We benefit from good traction in cloud, data & AI and digital core and have built a strong pipeline in generative and agentic AI, which accounted for more than 7 per cent of Group bookings in Q2. On this front, we launched our Resonance AI Framework and further enhanced our AI offerings and partnerships with major players such as Mistral AI and SAP. Demand is increasing in the emerging areas of defense and sovereignty, as well as in digital business process services primarily driven by intelligent operations.”
Ezzat estimated stability in the environment going into Q3 but retained a cautious stance due to geopolitical tensions and a slow economy. The company narrowed the range of constant currency growth outlook for the year to between -1 and 1 per cent.
Published on July 30, 2025