Capgemini disclosed updated financial objectives at its London Capital Markets Day, laying out a three-year plan that targets revenue growth of 5.5% to 7.5% per year at constant currency through 2028. The company said roughly 2 percentage points of that growth are expected to come from acquisitions.
The French technology group, which reported 22.5 billion in revenues for 2025, also introduced a revised headline profitability measure it calls adjusted operating profit. The company defined this metric as operating profit before acquisition-related expenses, including amortization of intangible assets and integration costs.
Using the new definition, Capgemini said its 2025 operating margin of 13.3% would restate to 10.8% under the adjusted operating profit measure. The group intends for the metric to improve by 130 to 150 basis points from 2025 to 2028, bringing the adjusted operating profit margin to a target range of 12.1% to 12.3% of revenues. Capgemini plans to apply the new reporting framework from 2027.
Broker reaction and margin comparisons
Morgan Stanley, which carries an equal-weight rating on Capgemini with a price target of 117 versus a May 25 close of 104.25, said the group's 2028 margin objective of 12.1% to 12.3% sits 50 to 70 basis points above the bank's own forecast of 11.6% for that year. The broker also said it projects a 10.4% margin for 2026 under the new metric, citing elevated restructuring costs in that year.
On cash generation, Capgemini set a target of cumulative organic free cash flow above 6 billion for the 2026-2028 period. Morgan Stanley characterized that figure as endorsing existing consensus expectation levels rather than raising them, noting the bank's estimate was about 6 billion and the Visible Alpha consensus median was around 6.2 billion.
2026 guidance reiterated
For the single year 2026, Capgemini reiterated full-year guidance that includes revenue growth of 6.5% to 8.5% at constant exchange rates, with an inorganic contribution of approximately 4.5 to 5 percentage points. The company also maintained a 2026 operating margin target of 13.6% to 13.8% and forecast organic free cash flow of 1.80 billion to 1.90 billion.
Capgemini noted the free cash flow target takes into account an expected increase in restructuring cash outflow of around 200 million compared with 2025, attributable to its Fit-for-Growth program.
Agentic AI and market opportunity
Chief executive Aiman Ezzat framed the company's strategy around the market potential for Agentic AI, saying: "Agentic AI represents a step change in terms of value creation for global corporations and creates a significant growth opportunity for Capgemini while structurally expanding our addressable market. Deploying Agentic AI across the enterprise represents an unprecedented level of complexity. It is an enterprise revolution rather than technology deployment."
Analyst interpretation of growth targets
Morgan Stanley interpreted Capgemini's headline 5.5% to 7.5% constant-currency revenue compound annual growth rate as implying an organic growth corridor of roughly 3.5% to 5.5%, compared with the bank's prior estimate of about 3%. The broker also noted the Visible Alpha consensus sat near the lower end of that implied organic range at approximately 3.5%.
According to Morgan Stanley, Capgemini recorded approximately 4.5% organic growth in the first quarter of 2026.
Execution and sector risks
Analysts highlighted that execution risk on the organic growth targets remains the key variable. They pointed to a weak recent reporting season among other global IT services vendors, even as Capgemini's own first-quarter results were described as solid.
Morgan Stanley flagged broader concerns across the IT services sector related to contract structures, pricing and labor models as the industry adjusts to AI-driven changes. The broker additionally cited cyclicality risks in consulting and high contract execution risk specific to Capgemini as factors investors should monitor.
This roadmap establishes Capgemini's financial priorities through 2028: a combination of inorganic and organic revenue expansion, a newly framed profitability metric that adjusts for acquisition-related expenses, and a multi-year free cash flow ambition. How effectively the group executes on organic growth and manages restructuring costs and contract execution will determine whether the stated targets are met.