Capgemini Raises 2025 Revenue Forecast After Strong Q3 Performance Driven by AI and North America

Image Source: The Wall Street Journal

Capgemini has upgraded its full-year revenue outlook for 2025, citing robust Q3 results and strong demand in North America. The company posted €5.39 billion in Q3 revenue, up 2.9% at constant exchange rates, fueled by growth in AI, cloud, and data services. This marks its second guidance revision this year.

Capgemini’s Growth Engine Accelerates: AI and Regional Demand Push Revenue Outlook Higher

Global tech and consulting giant Capgemini has lifted its full-year 2025 revenue guidance following a better-than-expected Q3 performance, driven by AI-led demand and regional acceleration, particularly in North America. The company now expects constant-currency revenue growth of 2.0% to 2.5%, up from its previous forecast of -1.0% to +1.0%.

Key Highlights from Capgemini’s Q3 Update:

Q3 Revenue Performance

Capgemini reported €5.39 billion in consolidated revenue for Q3 2025.

This reflects a +0.3% year-on-year increase on a reported basis and a +2.9% rise at constant exchange rates, beating analyst expectations.

North America Leads the Charge

The North America region, Capgemini’s second-largest market, saw 7% year-on-year growth, driven by demand in Financial Services, Telecom, Media, Technology (TMT), and Life Sciences.

AI and Cloud Fuel Demand

CEO Aiman Ezzat credited the company’s AI-powered business model and strategic positioning for the strong quarter.

Growth was supported by cloud, data, and AI services, with a focus on efficiency and optimization.

Bookings and Seasonality

Total bookings for Q3 stood at €5.1 billion, down from €6.1 billion in Q2 due to seasonal factors, but still reflecting healthy pipeline activity.

Updated Financial Targets

Operating margin is now projected at 13.3% to 13.4%, slightly narrowed from the earlier 13.3% to 13.5%.

Organic free cash flow remains unchanged at €1.9 billion.

Strategic Outlook

Capgemini’s revised forecast signals confidence in sustained demand, especially in AI and digital transformation services.

The company continues to invest in next-gen technologies and regional expansion to maintain momentum.

This upward revision marks Capgemini’s second guidance upgrade in 2025, reinforcing its position as a leader in tech consulting amid evolving market dynamics.

Sources: Fortune India, Deccan Chronicle

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