Capgemini Navigates a Challenging 2024, Cautious Outlook for 2025
Introduction
Following a record-breaking 2023, French IT giant Capgemini faced a more subdued 2024, marked by a slight increase in net profit but a decline in overall activity amid an economic climate that proved less favorable than anticipated.
2024 Performance
Capgemini’s net profit for 2024 reached nearly €1.7 billion, a modest 0.5% increase year-over-year. However, its revenue fell by 1.9% to €22.1 billion.
"Market conditions were highly unfavorable in the industrial sector and in France" towards the end of the year, explained CEO Aiman Ezzat in a statement, highlighting that other sectors, such as financial services, had shown improvement.
Cautious Outlook for 2025
In light of the uncertain environment, particularly in Europe and the industrial sector, Capgemini adopts a cautious stance for 2025. The company projects a change in revenue at constant exchange rates between -2% and +2%, a less ambitious target compared to 2024. It also anticipates an operating margin between 13.3% and 13.5%, slightly above the 13.3% achieved in 2024.
Strategic Focus: Cloud, Data, and Artificial Intelligence
CEO Ezzat emphasized that the group’s growth momentum is primarily driven by its cloud, data, and artificial intelligence (AI) services. "Clearly, AI and data are the priority for our clients," he stated during a conference call, reiterating the company’s 2023 commitment to invest $2 billion in AI and its subsequent partnership with Mistral AI, a leading French AI company.
Workforce and Dividend
As of December 31, 2024, Capgemini’s total workforce stood at 341,100 employees, a modest 0.2% increase year-over-year after a 5% reduction in 2023. The group proposed a dividend of €3.40 per share, unchanged from the previous year.
Conclusion
Despite facing economic headwinds, Capgemini’s 2024 performance remained resilient with a slight increase in net profit. However, the company exercises caution in its outlook for 2025, recognizing the uncertainties in the market. Capgemini’s strategic focus on cloud, data, and AI positions it well for future growth and customer success.
