Financial performance of Capgemini has indicted that the IT service provider is yet to generate significant revenue from its AI business in 2024.
Capgemini’s AI focus and strategy remain centered on efficiency, operational agility, and cost-optimization, driving strong demand for its Cloud and Data & AI services.
The company is recognized as a global leader in AI by market analysts, underlining its continued investment in this domain. Generative AI played a significant role in the company’s performance, contributing around 5 percent of bookings in Q4. The acquisition of Syniti further strengthened Capgemini’s capabilities in data-driven digital transformation.
In 2024, Capgemini prioritized talent development, with the average number of learning hours per trained employee reaching 77, reflecting a significant increase, particularly due to the expansion of its generative AI training program.
CEO Aiman Ezzat emphasized the company’s resilience and leadership in AI, highlighting how clients increasingly focused on efficiency, operational agility, and cost optimization, despite discretionary spending remaining soft.
This market environment drove a strong demand for transformation programs, fueling continued traction for Capgemini’s Cloud, Data & AI services, as well as innovative offerings such as intelligent supply chain, digital core, and generative AI projects.
Capgemini has achieved total bookings of €23,821 million in 2024, with Q4 bookings reaching €6,806 million, reflecting a book-to-bill ratio of 1.08 for the year and 1.22 for Q4. Compared to 2023, bookings saw a decline of 0.5 percent for the year but a 1.9 percent increase in Q4.
Capgemini has revealed that generative AI accounted for close to 4 percent of total bookings in 2024 and around 5 percent in Q4.
The company reported revenues of €22,096 million in 2024, a decrease of 1.9 percent. Despite long client decision cycles, Capgemini maintained strong commercial momentum.
The company’s shift toward higher-value services, coupled with operational efficiency improvements, led to a 50-basis-point increase in gross margin to 27.4 percent of revenues. This reflects the resilience of Capgemini’s operating model, enabling it to absorb incremental investments in sales efforts while offsetting a slight rise in G&A expenses.
In North America, which contributes 28 percent of Group revenues, revenues declined by 4.1 percent, though trends improved in H2, driven by Financial Services, Consumer Goods & Retail, and Telco, Media & Technology. The Manufacturing and Public sectors slowed down.
The UK and Ireland region (12 percent of Group revenues) showed resilience with a 1.0 percent revenue decline, primarily due to Consumer Goods & Retail contraction. However, H2 saw a return to growth, driven by Financial Services recovery and the strength of the Energy & Utilities sector.
France (20 percent of Group revenues) saw a 3.5 percent revenue decline, mainly due to Manufacturing contraction, though Financial Services improved over the year.
The Rest of Europe region (31 percent of Group revenues) remained stable with 0.1 percent growth, supported by strong Public and Energy & Utilities sectors, along with Financial Services growth, although Manufacturing weighed negatively on activity.
The Asia-Pacific and Latin America region (9 percent of Group revenues) saw a slight decline of 0.3 percent, with a slowdown in Financial Services in Asia-Pacific. However, the Public Sector in Asia-Pacific and Consumer Goods & Retail in Latin America experienced double-digit growth.
By business line, Strategy & Transformation consulting services (9 percent of Group revenues) grew by 3.2 percent in 2024, demonstrating Capgemini’s strong positioning as a strategic partner. Applications & Technology services (62 percent of Group revenues) declined by 2.1 percent, while Operations & Engineering services (29 percent of Group revenues) also saw a 2.1 percent decrease.
As of December 31, 2024, Capgemini’s total headcount stood at 341,100, reflecting a slight year-on-year increase of 0.2 percent and a 0.7 percent rise compared to the end of Q3. The onshore workforce decreased by 1.1 percent to 144,200 employees, while the offshore workforce grew by 1.2 percent to 196,900, making up 58 percent of the total headcount.
Baburajan Kizhakedath
