Capgemini thrives in H1 2023 despite economic headwinds
PARIS, FRANCE — Amidst economic uncertainty, IT services and consulting provider Capgemini Group posted a strong H1 2023 performance, reporting a 7.9% surge in revenue at constant exchange rates and bolstered operating margins.
The company’s revenues hit €11.4 billion (US$12.5 billion), primarily spurred by growth in Intelligent Industry, Cloud, Data & Artificial Intelligence services.
Meanwhile, the firm’s operating margin rose to €1.4 billion (US$1.5 billion), equating to 12.4% of revenues. The operating profit climbed by 8% to €1.1 billion (US$1.2 billion), despite a rise in net operating expenses. Meanwhile, net financial expenses decreased, offset by an income tax expense of €313 million (US$344 million).
With first-half bookings reaching €11.9 billion (US$13 billion), Capgemini demonstrated strong commercial traction.
Capgemini Group CEO Aiman Ezzat attributed this growth to the company’s transition to generative AI, adding that they will invest €2 billion (US$2.2 billion) in AI to strengthen its technological prowess and develop industry-specific solutions.
“We have many client projects underway, a strong pipeline, and plan to double Data & AI teams to 60,000 in the next three years,” he added.
“The Group will invest €2 billion in Artificial Intelligence to build its leadership in this breakthrough technology, that must be deployed responsibly, reliably, and sustainably,” Ezzat added.
Among the nations where Capgemini operates, the United Kingdom (UK) and Ireland led with a 12% growth, closely followed by the rest of Europe at 11.4%.
North America and the Asia-Pacific & Latin America regions saw moderate growth at 3% and 4.8%, respectively.
Capgemini also reaffirmed its full-year objectives, targeting around 4% to 7% revenue growth, a 13% to 13.2% operating margin, and an organic free cash flow of about €1.8 billion (US$1.9 billion).
