Capgemini sets new targets building on AI consulting, but shares fall
FILE PHOTO: The Capgemini logo is seen during the Viva Technology conference dedicated to innovation and startups at Porte de Versailles exhibition center in Paris, France, June 12, 2025. REUTERS/Benoit Tessier/File Photo
May 27 : Capgemini unveiled new medium-term targets on Wednesday, sending its shares lower, as the French IT group positions itself as a consultant to help companies implement AI across industries.
The shares fell around 4 per cent by 0730 GMT, the worst performers on France's blue-chip index CAC 40.
Jefferies said in a note to clients that recent investor feedback suggested the best catalyst for AI-related stocks would be accelerating trends at the sector level rather than company-specific news.
Capgemini targets average yearly revenue growth of 5.5 per cent to 7.5 per cent between 2025 and 2028, and cumulative organic free cash flow of more than €6 billion ($7 billion) from 2026 to 2028. It also aims to raise its operating profit before acquisition costs to between 12.1 per cent and 12.3 per cent of revenue by 2028, it said in a statement.
Jefferies said the targets were broadly in line with the brokerage's preview, but noted that investors may focus on the free cash flow figures rather than anything else.
Capgemini said it was targeting the sprawling work of wiring AI into how large legacy companies actually run, notably through its WNS unit. The group will bet on its "in-depth knowledge of the business challenges of each industry", CEO Aiman Ezzat said in a statement published ahead of its capital markets day event.
The strategy places Capgemini in a crowded field that says enterprise AI adoption is too industry-specific to be solved by off-the-shelf tools, and that the real value of AI lies in applying it to companies' own data and operations.
French AI pure-play Mistral is targeting industrial clients in aerospace and automotive sectors with physics-capable AI, while ad giant Publicis has expanded itself into an AI maker and IT consultant, explicitly competing with the likes of Capgemini and Accenture.
Capgemini's investor presentation is scheduled to start at 1215 GMT.
($1 = €0.8590)
