French IT consulting firm Capgemini (CAPP.PA) reported a 2% drop in annual constant currency sales, totaling 22.10 billion euros ($23.11 billion) for the year, slightly surpassing analysts’ forecast of 22.05 billion euros. Despite the decline, the company exceeded market expectations, fueled by strong demand for cloud and AI services. However, Capgemini’s shares fell by 7.7% at 0825 GMT due to a more cautious outlook for 2025.
Capgemini expects 2025 sales to fluctuate between a 2% decline and a 2% increase in constant currency, with an operating margin forecasted at 13.3% to 13.5%. CEO Aiman Ezzat noted that generative AI played a key role in driving strong bookings, accounting for around 5% of bookings in Q4. The firm attributed ongoing demand to its efficiency and cost-optimization programs, particularly in its Cloud and Data & AI services.
During a call with journalists, Ezzat highlighted Europe’s efforts to strengthen its global presence in the AI sector, following the recent AI summit in Paris and major investment announcements. He emphasized European sovereignty in AI technology and underscored France’s competitive edge in providing stable, low-carbon energy through nuclear power.
Despite the overall sales drop, Capgemini reported growth in its Financial Services, Consumer Goods & Retail sectors, and strong performance in the public sector. The company’s board also proposed a dividend of 3.40 euros per share for 2024, unchanged from the previous year.
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