Capgemini's AI pivot drives strong bookings despite profit dip

In a clear signal of shifting enterprise priorities, IT consulting giant Capgemini reported that artificial intelligence-powered services accounted for a significant 7% of its new bookings in the second quarter. This surge in AI demand comes even as the company navigated a complex macroeconomic environment that saw a dip in overall profitability. While net profit for the first half of the year declined, the company posted a return to modest revenue growth after five consecutive quarters of decline, underscoring a strategic pivot that is heavily reliant on the burgeoning AI sector. Bookings rose 2.1% to €11,993 million in the first half, yielding a healthy book-to-bill ratio of 1.08, indicating solid commercial momentum despite persistent market headwinds.[1][2]

A closer look at the company's financial performance reveals a story of resilience and strategic realignment. For the first half of 2025, Capgemini's revenue reached €11,107 million, a slight 0.2% year-over-year increase at constant currency.[3] The second quarter showed more pronounced positive momentum, with revenue growing 0.7%.[3] Despite this return to top-line growth, profitability faced pressure. The operating margin remained stable at 12.4%, but net profit attributable to the group fell by 13% to €724 million, and earnings per share missed analyst forecasts.[3][2] In response to the mixed results and ongoing market uncertainty, Capgemini narrowed its full-year revenue guidance to a range of -1% to +1% growth, while maintaining its operating margin target, signaling a cautious but steady outlook.[1][4]

The standout narrative from the quarterly results is the accelerating adoption of AI. The 7% of bookings attributed to AI in the second quarter is an increase from 6% in the first quarter, demonstrating growing client appetite for AI-driven solutions.[5][1] This traction is the direct result of a multi-year, multi-billion dollar strategic investment in artificial intelligence. The company previously announced a €2 billion investment over three years to establish leadership in the field, a commitment that is now bearing fruit.[6][7] This investment has fueled the development of a comprehensive portfolio of AI services, including the "Resonance AI Framework" and offerings in generative and agentic AI.[8][1] Capgemini has been actively working with clients to implement AI use cases that enhance customer experience, modernize software engineering, and define enterprise-wide AI strategies.[9][10] The firm is also heavily investing in its workforce, having already trained over 120,000 employees on generative AI and aiming to significantly expand its Data & AI teams.[11][6]

While the focus on AI provides a strong growth vector, Capgemini's performance varied significantly across different geographies and industry sectors. The United Kingdom & Ireland region was a bright spot, posting strong growth of 8.0% in the second quarter, along with the Asia-Pacific & Latin America region which grew by 9.7%.[3] In contrast, France experienced a 5.0% decline, and the Rest of Europe contracted by 2.3%, highlighting persistent weakness in some European markets.[3] North America saw a modest return to growth.[12] From a sector perspective, demand from clients in Financial Services and Telecommunications, Media & Technology showed improvement.[3] However, the manufacturing sector continued to face headwinds.[11] This regional and sectoral disparity illustrates that while the company's AI focus is a powerful driver, it is not entirely immune to broader economic and industry-specific challenges. Client demand remains largely centered on transformation programs that deliver efficiency and cost optimization, which aligns well with Capgemini's cloud, data, and AI service offerings.[11][13]

In conclusion, Capgemini's second-quarter results paint a picture of a company in successful transition. It is weathering a challenging global market by strategically focusing on high-demand, high-value services, with artificial intelligence at the forefront. The notable increase in AI-related bookings serves as a powerful indicator not only for Capgemini's future trajectory but also for the broader IT services industry, highlighting where enterprises are directing their investments. While challenges in profitability and certain regional markets remain, the company's ability to return to growth, driven by its AI-first strategy, suggests a resilient and forward-looking approach. This strategic pivot appears to be effectively positioning Capgemini to capture a significant share of the AI transformation market, laying a solid foundation for sustained growth as economic conditions improve.