Capgemini will invest 700 million euros in restructuring to accelerate AI transformation

investing.com - Capgemini SE announced on Friday that the French technology consulting firm will incur approximately €700 million in restructuring costs over the next two years to accelerate workforce adjustments and meet the demand for AI services.

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The company stated in its annual performance report that most of these restructuring costs are expected to occur by 2026, involving “workforce and skills adjustment plans in specific countries,” closely related to AI-driven accelerated technological transformation.

CEO Aiman Ezzat said the company is “clearly shifting to become a catalyst for enterprise-level AI applications.”

Headquartered in Paris, the company reported 2025 revenue of €22.5 billion, up 1.7% year-over-year, with a 3.4% increase at constant currency, surpassing its October guidance.

Q4 growth at constant currency accelerated significantly to 10.6%, driven by AI demand and recent acquisitions.

The company stated that generative and agent-based AI accounted for over 10% of group orders in Q4 and more than 8% for the full year. Total orders reached €24.4 billion, with an order-to-revenue ratio of 1.08.

Net debt at year-end surged from €2.1 billion a year earlier to €5.3 billion, reflecting €3.8 billion used for acquisitions, mainly the purchase of Indian business process management company WNS.

Capgemini issued €4 billion in bonds in September and redeemed an €800 million maturing bond in June.

Operating profit margin remained stable at 13.3% of revenue, or €2.98 billion, within the company’s target range.

Net profit attributable to shareholders declined 4.2% to €1.6 billion. Basic earnings per share fell 3.7% to €9.46, while normalized EPS increased 5.8% to €12.95.

Organic free cash flow remained steady at €1.95 billion, in line with the company’s target of approximately €1.9 billion.

At year-end, employee headcount was 423,400, up 24% from a year earlier and 68,700 higher than in September, mainly reflecting the integration of WNS employees. Offshore employees increased 42% to 279,200, accounting for 66% of total staff.

Regionally, North America revenue grew 7.3% at constant currency, the UK and Ireland increased 10.5%. In what the company describes as a challenging environment, France declined 4.1%. Other European regions decreased 0.7%, while Asia-Pacific and Latin America rose 13.8%.

For 2026, Capgemini expects revenue growth of 6.5% to 8.5% at constant currency, with acquisitions contributing an estimated 4.5 to 5 percentage points.

The company guides for an operating profit margin of 13.6% to 13.8% and organic free cash flow of €1.8 billion to €1.9 billion.

The company stated that free cash flow targets consider approximately €200 million more cash outflows related to restructuring compared to 2025.

The board recommends a dividend of €3.40 per share, unchanged from the previous year, representing about 35% of net profit.

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