Capgemini Group Releases Q3 Reports, Raises 2021 Targets As Revenues Go Up 13.2%

Capgemini Group reported consolidated revenues of €4,552 million in Q3 2021, up 13.6% YoY at current exchange rates and 12.9% at constant exchange rates. Capgemini’s growth accelerated further in Q3 2021, with revenues of €4,552 million, constant currency growth was +12.9% year-on-year, exceeding Q2 growth of +12.4%. Organic growth was +13.2% YoY, compared with +12.9% in Q2. This performance is all the more remarkable as the comparison base was much higher in Q3.

“The strong growth achieved in Q3 reflects the strengthening of the positive trends of the past few quarters in all sectors and regions. This momentum confirms that we made the right moves to position the Group as a strategic partner for the digital transformation of large corporations and organizations, leveraging Cloud and Data/AI. Our digital offering portfolio covers the entire value chain from product and services design to customer experience. We continue to accelerate the introduction of new industry-specific offerings in the fast-growing markets of intelligent industry, customer experience and sustainability. We are able to attract the right talents to fuel our growth, crossing the 300,000 employees mark this quarter and increasing our headcount by nearly 20,000 people. I am extremely proud of the achievements of our teams across the world, and considering these excellent results and the outlook for the coming months, we are raising all our 2021 financial targets,” said Aiman Ezzat, Chief Executive Officer, Capgemini Group. 

Digital and Cloud services reported solid double-digit growth in Q3 2021, accounting for more than two-thirds of the Group’s business. For the first nine months of the fiscal year, the company recorded organic growth in revenue of 9.1%. 

Strategy & Transformation services (7% of Group revenues) and Applications & Technology services (62% of Group revenues and Capgemini’s core business) benefited fully from Digital and Cloud demand, reporting growth at constant exchange rates of +27.4% and +16.3%, respectively. 

Operations & Engineering Services (31% of Group revenues) also maintained a solid momentum, reaching double-digit after adjusting for the scope effect of the Odigo divestiture. This performance was once again driven by growth in Engineering services of well above 10%.

Considering the performance delivered in the first nine months of the year and the business outlook for Q4, Capgemini is once again raising all its 2021 financial targets:

•  Constant currency growth between +14.5% and +15.0%, instead of +12.0% and +13.0% previously;
• Operating margin greater than 12.7%, instead of 12.5% to 12.7%;
• Organic free cash flow above €1,700 million, instead of €1,500 million.

On September 30, 2021, the Group’s total headcount stood at 309,300, up 16.9% year-on-year, with over 177,000 employees in offshore centres.