Capgemini lifts 2026 revenue growth target on AI transformation demand

By Leo Marchandon

July 30 (Reuters) - French IT group Capgemini raised its 2026 revenue growth target on Thursday, offering fresh evidence that firms using AI are spending more on overhauling core systems and business processes.

The upgrade also adds to signs that companies adopting AI need more than software subscriptions, as they also have to organise internal data, modernise older applications and redesign workflows.

Paris-based Capgemini now expects annual revenue growth of 8.5% to 9% at constant currency, up from 6.5% to 8.5% previously, after second-quarter bookings rose 9.2% to €6.55 billion.

"Our pipeline has expanded substantially," Capgemini CEO Aiman Ezzat said in a statement.

The mix of Capgemini's businesses showed where clients were spending. Its core applications unit grew 5% as companies upgraded ageing systems for AI, while Operations & Engineering rose 24.7%, helped by demand for AI-driven business-process services following its acquisition of WNS.

On Wednesday, Sopra Steria raised its growth-target, driven by AI, cybersecurity and technology-sovereignty projects.

The trend also reflected SAP's recent argument that AI's bigger opportunity lies in governed systems running critical corporate processes, rather than chatbots and coding assistants.

Capgemini said demand was strongest in North America and Britain and flagged growing spending on defence, security and technological sovereignty in Europe.

The Paris-based IT group reported an 11.3% rise in first-half revenue to €12.08 billion ($13.83 billion) at constant exchange rates, while higher restructuring costs pushed net profit down 31.3%.

It maintained its annual operating margin target of 13.6% to 13.8% and organic free-cash-flow forecast of €1.8 billion to €1.9 billion.

($1 = 0.8732 euros)

(Reporting by Leo Marchandon in Gdansk; Editing by Subhranshu Sahu)