Capgemini beats 2025 revenue target as WNS acquisition boosts AI-driven growth

Summary

Capgemini exceeded its 2025 revenue guidance, posting €22.47 billion in annual sales as newly acquired outsourcing specialist WNS helped drive strong fourth-quarter growth and rising AI-related bookings. The French IT services group expects faster expansion in 2026, largely supported by acquisitions, while undertaking restructuring to align its workforce with growing demand for AI-driven services.

PARIS — French IT services group Capgemini reported full-year revenue ahead of its own guidance, supported by a sharp acceleration in fourth-quarter growth and contributions from recently acquired outsourcing specialist WNS.

Revenue rose 3.4% at constant exchange rates to €22.47 billion in 2025, exceeding the company’s October forecast of 2% to 2.5% growth. Fourth-quarter sales increased 10.6%, reflecting consolidation of WNS and cloud services provider Clou4C.

AI-led bookings gain momentum

Chief executive Aiman Ezzat said generative and agentic AI projects accounted for more than 10% of group bookings in the fourth quarter, compared with roughly 5% earlier in the year.

Capgemini has identified around 100 cross-selling opportunities with WNS and recently signed an “intelligent operations” contract valued at more than €600 million. The multi-function deal is tied to agentic AI transformation, highlighting growing enterprise demand for automation across finance, human resources and customer service functions.

The group is positioning itself as a catalyst for enterprise-wide AI adoption, focusing on AI-enabled transformation programmes, intelligent operations and digital sovereignty initiatives.

2026 outlook supported by acquisitions

For 2026, Capgemini expects revenue growth of 6.5% to 8.5% at constant exchange rates. However, approximately 4.5 to 5 percentage points of that growth is expected to come from acquisitions, primarily WNS, underscoring the central role of dealmaking in its expansion strategy.

The group forecasts operating margin between 13.6% and 13.8%, compared with 13.3% in 2025.

Organic free cash flow is expected to range between €1.8 billion and €1.9 billion, slightly below last year’s €1.95 billion, reflecting higher restructuring costs.

Workforce realignment under way

Capgemini said it will incur approximately €700 million in restructuring charges over the next two years, with the majority of costs falling in 2026.

The programme is aimed at adjusting workforce composition and skill sets to match rising demand for AI-enabled services.

Headcount stood at 423,400 at the end of December, up 24% year-on-year, primarily due to the integration of WNS employees.

Strategic shift toward AI-powered operations

The results underline a broader shift in the IT services sector, as firms pivot from traditional consulting and outsourcing toward AI-driven business transformation.

By embedding agentic AI capabilities into business process services through WNS, Capgemini is seeking to move higher up the value chain — from systems integration to outcome-based intelligent operations.

Why this matters

The IT services industry is entering a new phase where growth is increasingly tied to AI adoption rather than traditional outsourcing contracts.

Capgemini’s results suggest enterprise clients are beginning to commit meaningful budgets to generative and agentic AI transformation programmes. However, much of the group’s projected 2026 growth is acquisition-driven, highlighting the competitive pressure among global IT providers to scale capabilities quickly.

The restructuring programme also reflects a structural shift in skills demand, as automation reshapes service delivery models across consulting and business process outsourcing.

For investors, the key question will be whether AI-led bookings translate into sustained organic growth beyond acquisition effects.

FAQs

Q1: How did Capgemini perform in 2025?

Revenue rose 3.4% to €22.47 billion at constant exchange rates, exceeding company guidance, with strong fourth-quarter momentum.

Q2: What role did WNS play?

WNS contributed significantly to fourth-quarter growth and is central to Capgemini’s strategy in AI-powered business process services.

Q3: How important is AI to Capgemini’s strategy?

Generative and agentic AI projects accounted for more than 10% of bookings in the fourth quarter, up from around 5% earlier in the year.

Q4: What is Capgemini’s outlook for 2026?

The company forecasts 6.5%–8.5% revenue growth, with roughly half driven by acquisitions, alongside modest margin expansion.

Q5: Why is Capgemini restructuring?

It plans approximately €700 million in restructuring over two years to adapt its workforce to rising AI-driven service demand.

Q6: What is agentic AI?

Agentic AI refers to systems capable of autonomous decision-making and task execution within enterprise workflows.