Capgemini meets Q1 revenue expectations, reporting earnings of €5.5 Billion

Capgemini is a worldwide business and innovation change accomplice, making a difference in organizations to quicken their double move to a digital and economic world while making substantial effects for ventures and society. It is a capable and assorted gathering of 340,000 group individuals in more than 50 nations. With its solid over 55-year legacy, Capgemini is trusted by its clients to open the esteem of innovation to address the whole breadth of their trade needs. It conveys end-to-end services and arrangements leveraging qualities from technique and plan to design, all fueled by its advertise-driving capabilities in AI, cloud, and data, combined with its profound industry ability and accomplice ecosystem. The Gather detailed 2023 worldwide incomes of €22.5 billion.

Capgemini meets Q1 revenue of €5.5B Earnings, -3.5% year-on-year at current trade rates and -3.3% at steady trade rates*.

Aiman Ezzat, Chief Executive Officer of the Capgemini Group, said: "As expected, the market moderated down in Q1, and we affirm that the development trough is presently behind us. We anticipate the market steadily rising toward an appealing exit development rate in Q4, setting up for a more unmistakable increasing speed in 2025.

In line with the Group's desires, Capgemini's Q1 revenue was down year-on-year at -3.3% at consistent trade rates* and -3.6% naturally (i.e., balanced for Group scope and trade rates). Capgemini meets Q1 revenue expectations, showcasing its strong financial performance.

In a delicate large-scale environment, massive enterprises and organizations are still prioritizing operational dexterity and fetched effectiveness programs with quick payback at the cost of non-strategic and optional deals. In that setting, Capgemini's revenue is most strikingly in the Brilliant Industry. Exercises are driven by Cloud, Information & Counterfeit Insights, and it is delighted in a firm footing in Q1.

OPERATIONS BY REGION

At consistent trade rates, incomes in the North American region (28% of Group incomes in Q1 2024) declined by -7.1% year-on-year, a rate comparable to Q4 2023. The Financial Administrations and TMT (Telecoms, Media, and Technology) divisions contributed the most to this decay, mostly balanced by development in the Manufacturing sector.

Revenues in the United Kingdom and Ireland countries (12% of Group incomes) were down -3.2%, generally driven by the Financial Administrations and TMT divisions. However, the Administrations and Vitality & Utilities divisions delighted in strong force, as did the manufacturing segment to a lesser extent.

Activity in France (20% of Group incomes) declined by -2.8%, with a few delicateness in the Manufacturing and Financial Administrations divisions and an energetic Open division. Meanwhile, investors are pleased that Capgemini meets Q1 revenue projections, demonstrating its resilience in the market.

Revenues in the rest of Europe (32% of Group incomes) were nearly steady at -0.5%. The essential execution by division appeared more differentiated, with great force in the Vitality & Utilities and Open segments and a noticeable withdrawal of the TMT sector.

Finally, revenues in the Asia-Pacific and Latin America locale (8% of Group incomes) were down -1.7%, almost entirely driven by the Financial Administrations and TMT divisions. In contrast, the Customer Merchandise & Retail segment demonstrated very dynamic.

Operations By Business

At consistent trade rates, add-up to incomes of Strategy & Transformation administrations (9% of the Group's add-up to incomes in Q1 2024) was up +1.6% year-on-year. This development reflects the client's focus on critical activities to change, optimize, and adjust their commerce and operations to a challenging financial environment, as well as speculation in Gen AI.

Total incomes of Applications & Innovation services (62% of the Group's add up to incomes and Capgemini's center trade) declined by -4.0%.

Lastly, Operations and engineering (29% of the Group's income) add up to incomes contracted by -3.0%.

Headcount

As of March 31, 2024, the group's total headcount stood at 337,200, down 6% year-on-year. The seaward workforce accounts for 57% of the total headcount or 192,000 employees.

Bookings

Bookings totaled €5.5B Earnings in Q1 2024, down -3.5% year-on-year at steady trade rates. The book-to-bill proportion of 1.02 is over the Q1 chronicled normal. The announcement that Capgemini meets Q1 revenue forecasts boosts investor confidence in the company's financial health.