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Capgemini
(OTC:CGEMY)
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Rating:65Neutral
Price Target:
$22.50
▼(-33.33% Downside)
Action:Reiterated
Date:02/28/26
The score is driven primarily by steady profitability and strong cash generation, reinforced by constructive 2026 guidance and strong bookings. These positives are tempered by clear technical weakness (downtrend signals), along with recent growth softness and increased leverage/restructuring execution risk.
Positive Factors
Free cash flow generation
Consistent high organic free cash flow (~€1.9bn in FY25) shows durable cash conversion and earnings quality. That cashability supports debt servicing, dividends, buybacks and reinvestment for AI/Cloud capabilities, preserving strategic optionality over the next several quarters.
Negative Factors
Higher leverage post‑M&A
Re‑leveraging to ~€5.3bn net debt and ~1.66x net debt/EBITDA after acquisitions increases financial risk. If revenue or margin momentum weakens, higher leverage can constrain capital allocation, raise financing costs and reduce flexibility over the coming 2–6 months.
Read all positive and negative factors
Positive Factors
Negative Factors
Free cash flow generation
Consistent high organic free cash flow (~€1.9bn in FY25) shows durable cash conversion and earnings quality. That cashability supports debt servicing, dividends, buybacks and reinvestment for AI/Cloud capabilities, preserving strategic optionality over the next several quarters.
Read all positive factors
Capgemini (CGEMY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$17.71B
Dividend Yield2.33%
Average Volume (3M)8.98K
Price to Earnings (P/E)12.5
Beta (1Y)1.01
Revenue Growth6.18%
EPS Growth0.71%
CountryUS
Employees423,405
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)1.88
Shares Outstanding849,643,400
10 Day Avg. Volume0
30 Day Avg. Volume8,976
Financial Highlights & Ratios
PEG Ratio-2.07
Price to Book (P/B)2.06
Price to Sales (P/S)1.07
P/FCF Ratio11.46
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)2.92
Revenue Forecast (FY)$27.71B
Capgemini Business Overview & Revenue Model
Company Description
Capgemini SE operates as a leading global provider, delivering a broad spectrum of professional services that encompass consulting, digital metamorphosis, advanced technology solutions, and engineering expertise. Its extensive operations reach acr...
How the Company Makes Money
Capgemini primarily makes money by selling professional and managed services to organizations under consulting engagements and longer-term delivery contracts. Its main revenue streams include: (1) Consulting and advisory work (often time-and-mater...
Capgemini Earnings Call Summary
Earnings Call Date:Feb 13, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Positive
The call balanced strong strategic and operational positives—above-guidance revenue growth, robust bookings and book-to-bill, stable operating margin, solid free cash flow, normalized EPS growth, material AI/Intelligent Operations traction (including a >EUR 600m mega deal), and progress on ESG—against notable near-term headwinds: regional softness in Continental Europe (notably France), a 30 bps gross margin decline, higher non-operational one-offs and restructuring costs, and increased net debt/leverage following M&A. Management provided clear 2026 targets and concrete synergy and restructuring plans, while emphasizing execution on AI, Intelligent Operations and Sovereignty. On balance the highlights outweigh the lowlights as the company shows momentum recovery, disciplined financial targets and strategic positioning for AI-led growth.Positive Updates
Full-Year Revenue Growth
Revenues of EUR 22.46 billion (EUR 22,465 million) for FY25, up +3.4% at constant currency and +1.7% on a reported basis, finishing above upgraded guidance.
Negative Updates
Regional Weakness in Continental Europe and France
France revenues declined -4.1% for FY25 and remains challenging; Rest of Europe revenues down -0.7% at constant currency; prolonged softness in Continental Europe weighed on gross margin.
Read all updates
Q4-2025 Updates
Positive
Negative
Full-Year Revenue Growth
Revenues of EUR 22.46 billion (EUR 22,465 million) for FY25, up +3.4% at constant currency and +1.7% on a reported basis, finishing above upgraded guidance.
Read all positive updates
Company Guidance
Capgemini guided Q1 2026 constant‑currency growth of 8.5–9.5% (with ~6.5 points from M&A) and full‑year 2026 constant‑currency revenue growth of around 6.5–8.5% (inorganic contribution ~4.5–5.0 points), targeting an operating margin of 13.6–13.8% and organic free cash flow of about EUR 1.8–1.9bn (including an estimated ~EUR 200m year‑on‑year increase in restructuring cash out); management also announced an estimated EUR 700m of restructuring over the next two years, limited M&A, accelerated share buybacks (following the EUR 2bn program) and confirmed WNS/Cloud4C run‑rate synergies of EUR 100–140m revenue and EUR 50–70m cost by end‑2027. For context, FY25 baselines cited on the call include revenues of EUR 22.465bn (+3.4% cc), bookings EUR 24.36bn (book‑to‑bill 1.08 for the year, 1.21 in Q4), Q4 cc growth 10.6% (scope impact ~6.5 pts, organic ~4%), operating margin 13.3%, normalized EPS EUR 12.95 (+5.8%), organic FCF EUR 1.949bn, net profit EUR 1,601m, basic EPS EUR 9.46, headcount 423,400, net debt EUR 5.3bn (net debt/EBITDA 1.66) and gross margin 27.1% (down 30bps).Capgemini Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
61
Positive
Cash Flow
72
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 22.46B | 22.10B | 22.52B | 22.00B | 18.16B |
| Gross Profit | 6.08B | 6.05B | 6.05B | 5.83B | 4.79B |
| EBITDA | 3.06B | 3.23B | 3.19B | 3.14B | 2.53B |
| Net Income | 1.54B | 1.67B | 1.66B | 1.55B | 1.16B |
Balance Sheet | |||||
| Total Assets | 29.05B | 25.66B | 24.70B | 25.48B | 24.03B |
| Cash, Cash Equivalents and Short-Term Investments | 3.03B | 3.06B | 3.70B | 4.19B | 3.51B |
| Total Debt | 9.46B | 6.08B | 6.59B | 7.55B | 7.64B |
| Total Liabilities | 17.38B | 13.86B | 14.23B | 15.74B | 15.55B |
| Stockholders Equity | 11.64B | 11.78B | 10.45B | 9.73B | 8.47B |
Cash Flow | |||||
| Free Cash Flow | 2.09B | 2.21B | 2.27B | 2.23B | 2.31B |
| Operating Cash Flow | 2.37B | 2.53B | 2.52B | 2.52B | 2.58B |
| Investing Cash Flow | -3.86B | -1.34B | -383.00M | -659.00M | -678.00M |
| Financing Cash Flow | 1.75B | -2.02B | -2.31B | -1.12B | -1.75B |
Capgemini Technical Analysis
Neutral
33.75
Price Trends
22.17
Negative
22.87
Negative
26.42
Negative
Market Momentum
-0.37
Negative
46.39
Neutral
60.41
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CGEMY, the sentiment is Neutral. The current price of 33.75 is above the 20-day moving average (MA) of 20.62, above the 50-day MA of 22.17, and above the 200-day MA of 26.42, indicating a neutral trend. The MACD of -0.37 indicates Negative momentum. The RSI at 46.39 is Neutral, neither overbought nor oversold. The STOCH value of 60.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CGEMY.
Capgemini Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $87.86B | 11.38 | 24.82% | 2.25% | 6.74% | -0.66% | |
75 Outperform | $21.22B | 9.71 | 14.79% | 1.46% | 6.55% | -3.10% | |
71 Outperform | $46.23B | 13.88 | 31.77% | 2.58% | 4.85% | 6.19% | |
68 Neutral | $4.63B | 12.67 | 10.67% | ― | 14.21% | -2.92% | |
65 Neutral | $17.71B | 12.48 | 10.95% | 2.33% | 6.18% | 0.71% | |
65 Neutral | $18.09B | 13.96 | 15.03% | 2.78% | -0.12% | -7.87% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
CGEMY
Capgemini
20.89
-10.33
-33.08%
ACN
Accenture
143.57
-129.79
-47.48%
CTSH
Cognizant
44.77
-29.09
-39.38%
EPAM
Epam Systems
88.66
-76.84
-46.43%
INFY
Infosys
11.49
-6.15
-34.85%
WIT
Wipro
1.86
-0.99
-34.78%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.