Capgemini Reports ‘Better Than Expected’ Q1 FY25 with 6% of AI Bookings
Following a 1.9% decline in revenues in the last financial year, Capgemini reported €5.5 billion (approximately ₹53,350 crore) in revenues for the first quarter of FY25, a 0.4% decrease at constant exchange rates YoY. Bookings totalled €5.8 billion, reflecting a strong book-to-bill ratio of 1.06. Aiman Ezzat, CEO, said, “We delivered a Q1 slightly better than our expectations in a macro and geopolitical environment that remains challenging. Clients continue to focus on transformation programs aimed at improving agility, cost, and efficiency.” He highlighted Capgemini’s growing traction in generative and agentic AI, which contributed over 6% of bookings in Q1. The company is investing in training and expanding partnerships, including new initiatives with NVIDIA and Google Cloud. Despite global uncertainties affecting large Indian IT firms, Paris-based Capgemini reaffirmed its financial objectives for 2025, maintaining a cautious stance due to current conditions in international trade and tariffs. The Group aims for revenue growth between -2.0% and +2.0% at constant currency, an operating margin between 13.3% and 13.5%, and organic free cash flow of approximately €1.9 billion. At constant exchange rates, North America segment (28% of 2024 revenues) returned to slight growth, up 0.8% year-on-year, driven by the telecoms, media and technology (TMT) and financial services sectors. France, which accounted for 20% of 2024 revenues, experienced a 4.9% decline year-over-year, primarily due to ongoing weakness in the manufacturing and energy and utilities sectors. The Asia-Pacific and Latin America region that accounted for 9% of 2024 revenues, posted strong growth of 7.6%, with the public sector, TMT, financial services, and manufacturing sectors contributing positively. As of March 31, 2025, Capgemini’s headcount stood at 342,700, up 1.6% year-on-year and 0.5% compared to December 2024. Offshore headcount increased by 3.9% to 199,400 employees, representing 58% of the total workforce, while onshore headcount declined by 1.4% to 143,300. Attrition for the year stood at 16%. Bookings rose by 2.8% year-on-year at constant exchange rates, reaching €5,884 million, with the book-to-bill ratio exceeding historical averages for the period. In Q4 FY25, Capgemini closed fiscal 2024 with a slight uptick in profits despite a drop in revenues, as the French IT giant navigated a challenging market environment. Revenues for FY24 came in at €22.10 billion, a decline of 1.9% compared to the previous year.
Bookings totalled €5.8 billion, reflecting a strong book-to-bill ratio of 1.06.
Following a 1.9% decline in revenues in the last financial year, Capgemini reported €5.5 billion in revenues for the first quarter of FY25.
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["Go", "agentic AI", "programming_languages:R", "AI", "RAG", "Aim", "llm_models:Gemini", "cloud_platforms:Google Cloud", "GAN", "R"]
["AI", "agentic AI", "Aim", "RAG", "R", "Go", "GAN", "llm_models:Gemini", "cloud_platforms:Google Cloud", "programming_languages:R"]
Mohit writes about AI in simple, explainable, and often funny words. He's especially passionate about chatting with those building AI for Bharat, with the occasional detour into AGI.