Capgemini raises its 2026 outlook as Q3 revenue grows 11.7% at constant currency
The Paris-based IT services and consulting group grew faster than expected, helped by its WNS and Cloud4C acquisitions and by demand for AI and data work. Growth in continental Europe stayed modest, while North America and the UK led.
Capgemini, the Paris-based IT services and consulting group, reported third-quarter 2026 revenue of €6,073 million on Friday 30 October. That is 12.6% more than a year earlier on a reported basis and 11.7% more at constant exchange rates. Bookings reached €5,401 million, up 3.4% at constant currency.
The group raised its 2026 revenue growth target at constant currency to 9.0% to 9.5%, from about 8.5% to 9.0% before. Reuters reported that it was the second upgrade this year and called it the strongest signal yet that the rush to deploy AI is turning into contracts for Europe's established consultancies.
The quarter
According to the company's release, revenue for the first nine months of 2026 was €18,155 million, up 10.0% reported and 11.4% at constant currency. Acquisitions made a large contribution. Capgemini closed its purchases of WNS, a business process services provider, and Cloud4C, a cloud managed services company, in the fourth quarter of 2025, so both are still adding to growth compared with last year.
Regions
North America was the largest region in the quarter, with revenue of €1,843 million, up 18.3% at constant currency. The United Kingdom and Ireland grew 25.2% to €928 million. France grew 4.9% to €1,019 million, its second straight quarter of growth according to Reuters, and the Rest of Europe region grew 3.4% to €1,686 million. Asia Pacific and Latin America together grew 11.9% to €597 million.
The figures show a gap between the English-speaking markets, where the acquired businesses are concentrated, and continental Europe, where growth stayed in the low to mid single digits.
Business lines
Strategy and Transformation, the consulting arm, grew 18.6% at constant currency. Applications and Technology, the largest business, grew 3.5%. Operations and Engineering, which includes business process services from WNS, grew 26.9%.
At the end of September Capgemini employed 417,500 people. That is 62,800 or 18% more than a year earlier, mainly because of WNS, but 5,900 fewer than at the end of 2025.
The outlook
Besides the higher growth target, Capgemini kept its other 2026 targets. It still expects an operating margin of 13.6% to 13.8% and organic free cash flow of about €1.8 billion to €1.9 billion. It said acquisitions should add about 5 percentage points to growth. Cash spent on restructuring under its Fit for Growth programme is expected to be about €200 million higher than in 2025, according to the release.
The new range implies fourth-quarter growth of about 3% to 4% at constant currency. Chief executive Aiman Ezzat told reporters that the third quarter beat expectations and that the slower fourth quarter reflects acquisitions entering the comparison base rather than weaker demand, Reuters reported.
Capgemini will publish its full-year 2026 results on 16 February 2027.
Why AI matters here
For two years, investors have asked whether generative AI would cut demand for IT consultants by automating coding and support work, or raise it by creating new projects. Capgemini's numbers point to the second outcome for now. Ezzat said the third quarter outpaced the sector and that demand is now concentrated in overhauling clients' data systems so they can adapt their business to AI, Reuters reported.
The strong growth in consulting is a useful early indicator, because strategy work often comes before larger implementation contracts. Bookings growth of 3.4% was slower than revenue growth, which is a number to watch in the coming quarters.
What it means for European founders and investors
Large integrators such as Capgemini are often the route by which new software reaches big European companies, banks and public bodies. When they win AI programmes, they need models, data tools, security products and industry software from smaller vendors. Founders selling AI infrastructure or vertical AI tools can treat integrators as a channel, not only as competitors.
The regional split is a caution, though. Growth in France and the rest of continental Europe stayed modest, which suggests that many European clients are still careful with budgets. That matches what other software groups have reported this month, such as Dassault Systèmes, which saw weakness in parts of Europe.
Sovereign AI is another angle. European providers such as Mistral AI and Cohere, with backing from Schwarz Group, are selling to the same large clients. Integrators that can deploy these models inside European data centres may gain business from customers that want to limit their dependence on US platforms.
For investors, Capgemini's results support the case that AI spending is starting to show up in services revenue, not only in chip and cloud sales. The test will be whether bookings speed up in the fourth quarter and whether continental Europe follows the UK and US.
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