On Tuesday, French IT consulting firm Capgemini reported a 2% decrease in its annual constant currency sales, surpassing market expectations due to sustained demand for its cloud and AI services. Aiman Ezzat, CEO of Capgemini, highlighted that "Generative AI supported strong bookings and accounted for around 5% of bookings in Q4."
Capgemini attributed the ongoing client demand to the appeal of efficiency and cost-optimization programs, which have boosted its Cloud and Data & AI services businesses. Despite a decrease, full-year sales reached 22.10 billion euros ($23.11 billion), slightly exceeding the Visible Alpha consensus cited by Jefferies, which had predicted sales of 22.07 billion euros.
The company noted enhancements in its Financial Services and Consumer Goods & Retail segments, as well as a robust performance in the public sector unit. Foreseeing sales development between a 2% decrease and a 2% increase in constant currency terms by 2025, Capgemini anticipates an operating margin range of 13.3% to 13.5% for the year.
Capgemini reduced hiring last year to lower costs, with a total headcount of 341,100 employees by the end of December, showing a 0.7% increase from the previous year. The board has proposed an unchanged dividend of 3.40 euros per share to be paid for 2024.
(Note: Currency conversion provided: $1 = 0.9565 euros)