Capgemini lifts revenue forecast as North America and AI demand drive growth
The logo of Capgemini is pictured during the Viva Tech start-up and technology summit in Paris, France, May 25, 2018. REUTERS/Charles Platiau
French IT consulting firm Capgemini raised its growth forecast on Tuesday, citing solid demand for AI solutions and strong performance in North America, after its third-quarter revenue rose by 2.9 per cent in constant currency terms.
The Paris-based company now expects its annual revenue to grow between 2 per cent to 2.5 per cent, excluding currency exchange effects, after previously guiding for -1 per cent to +1 per cent. It also narrowed its operating margin forecast to between 13.3 per cent and 13.4 per cent, from an earlier range of 13.3 per cent to 13.5 per cent.
Capgemini, which provides services ranging from cloud to artificial intelligence and data across many industries, reported third-quarter revenue of 5.39 billion euros ($6.29 billion) and quarterly order bookings of 5.16 billion euros.
"North America is now the group's locomotive, accounting for 28 per cent of global revenue," CEO Aiman Ezzat said in a call with journalists. Capgemini's quarterly revenue grew 7 per cent in the region.
"This performance is driven by financial services, telecoms, media and technology, and industry, particularly in the life sciences," Ezzat added.
Capgemini is also seeing growing demand for AI solutions, he said, a trend that was also behind the group's recent $3.3 billion acquisition of technology outsourcing firm WNS.
"We saw an increase in demand even before the acquisition. That's why we did it. And today, we have already started to sign some nice contracts and have a very promising contract in the pipeline to be finalized by the end of the year," Ezzat said.
The company's headcount increased by 4.7 per cent to 354,700 employees at the end of September, compared to a year earlier.
($1 = 0.8575 euros)
