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The latest update is out from Capita plc ( (GB:CPI) ).
Capita reported that 2025 was a pivotal year in its transformation into an AI-led business process outsourcer, with about two thirds of group revenue now AI-enabled and a growing £19.8bn bid pipeline. The group delivered £250m of annualised cost savings, materially improving adjusted operating profit by 34% to £113.5m and lifting margins to 5.2%, although it remained loss-making at the reported level due to restructuring costs and a goodwill impairment in its Contact Centre unit.
Operationally, the Public Service and Pension Solutions divisions both achieved 4.5% revenue growth and margins above group targets, offsetting ongoing revenue decline of 17.5% in Contact Centres following earlier contract losses. Capita increased total contract value won by 36% to £2.1bn, strengthened customer satisfaction to a record cNPS of +31, and advanced its AI strategy through launches such as the AI Catalyst Stack and Catalyst Lab, while also resolving legacy issues including exits from loss-making businesses and settling matters related to a 2023 cyber incident.
Looking to 2026, the company expects low single-digit adjusted revenue growth, driven by continued strength in public sector and pensions but tempered by ongoing challenges in Contact Centres and higher mobilisation costs. Management guides to a slight reduction in operating margin and a return to positive free cash flow of £20m-£40m, highlighting a leaner balance sheet, extended credit facilities and plans to roll out further AI-powered products to reinforce competitiveness in regulated and public markets.
The most recent analyst rating on (GB:CPI) stock is a Buy with a £6.00 price target. To see the full list of analyst forecasts on Capita plc stock, see the GB:CPI Stock Forecast page.
Spark’s Take on GB:CPI Stock
According to Spark, TipRanks’ AI Analyst, GB:CPI is a Neutral.
Capita plc’s overall stock score reflects a mixed financial performance with significant leverage and cash flow issues. Strong technical momentum and positive corporate events provide some optimism, but valuation concerns and regulatory challenges temper the outlook.
To see Spark’s full report on GB:CPI stock, click here.
More about Capita plc
Capita plc is a UK-based business process outsourcing and professional services company focused on public services, pensions administration and customer contact centre operations. It is repositioning itself as an AI-led BPO, integrating artificial intelligence and digital solutions into complex, regulated workflows for government, utilities and other large enterprise clients.
Average Trading Volume: 536,579
Technical Sentiment Signal: Hold
Current Market Cap: £420.9M
Find detailed analytics on CPI stock on TipRanks’ Stock Analysis page.