Capgemini Capgemini CMD positions AI as a growth opportunity; investors await proof of growth, margin and FCF uplift

Research evidence excerpt

Capgemini Capgemini CMD positions AI as a growth opportunity; investors await proof of growth, margin and FCF uplift

cialists, and AI FinOps/token specialists while traditional

developers evolve into extended software engineers covering the full lifecycle.

• Revenue mid-term growth drivers: Capgemini’s 2025–2028 revenue CAGR ambition

is +5.5% to +7.5% at constant currency, with approximately 2 points expected from

M&A. For 2026, management reiterated revenue growth guidance of +6.5% to +8.5% cc,

with the inorganic contribution estimated at around 4.5 to 5pts, implying an acceleration

in organic growth through 2027/2028. Net growth is to be primarily fueled by the five

AI-driven value pools outlined above, with upside from acceleration in tech debt

modernization, intelligent operations (with WNS acquisition), and new AI value pools

ramping, alongside non-agentic AI demand – partially offset by a transitory headwind

from AI delivery ramp-up. Beyond AI, additional growth exposure comes from

sovereignty and defense markets.

• Margin expansion drivers: Capgemini introduced Adjusted Operating Profit as its new

headline profitability metric – defined as operating profit before acquisition-related

expenses, now including share-based compensation and restructuring costs – which

rebases 2025 margins from 13.3% to 10.8%. The 2028 ambition of 12.1-12.3% implies

+130-150bps expansion from 2025 on the new basis. Management attributed this

expansion to four primary levers – a richer mix of higher-value AI-driven services, Fit-

for-Growth efficiency actions, contributions and synergies from WNS, and the

agentification of Capgemini’s own operations to drive productivity – partially offset by

continued investments. The new reporting framework will be applied from next year, first