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Capgemini
(OTC:CGEMY)
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Rating:70Outperform
Price Target:
$27.00
▲(31.96% Upside)
Action:Upgraded
Date:08/04/26
Overall score is driven primarily by solid (but slowing) fundamentals: strong, consistent free cash flow supports the business, but weakening recent growth, a concerning 2025 margin signal, and higher 2025 leverage hold the score back. Technicals are supportive with positive trend/momentum, and valuation is reasonable with a low-to-moderate P/E and a solid dividend yield.
Positive Factors
Diversified service portfolio
Capgemini’s broad end-to-end services mix reduces revenue cyclicality and increases client stickiness via long-duration managed contracts and multi-domain engagements. Structural demand for cloud, data/AI and cybersecurity supports steady secular growth and cross-sell opportunities over the next several quarters.
Negative Factors
Slowing revenue growth
A sustained deceleration in top-line growth erodes operating leverage and constrains margin and free‑cash‑flow expansion. If demand softness or pricing pressure persists over the next 2–6 months, management may face tougher trade‑offs between margin preservation and revenue recovery, limiting strategic flexibility.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified service portfolio
Capgemini’s broad end-to-end services mix reduces revenue cyclicality and increases client stickiness via long-duration managed contracts and multi-domain engagements. Structural demand for cloud, data/AI and cybersecurity supports steady secular growth and cross-sell opportunities over the next several quarters.
Read all positive factors
Capgemini (CGEMY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$21.40B
Dividend Yield3.19%
Average Volume (3M)8.98K
Price to Earnings (P/E)13.4
Beta (1Y)1.06
Revenue Growth13.95%
EPS Growth-5.02%
CountryUS
Employees423,405
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)1.63
Shares Outstanding849,643,400
10 Day Avg. Volume0
30 Day Avg. Volume8,976
Financial Highlights & Ratios
PEG Ratio-2.07
Price to Book (P/B)2.06
Price to Sales (P/S)1.07
P/FCF Ratio11.46
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)2.88
Revenue Forecast (FY)$27.93B
Capgemini Business Overview & Revenue Model
Company Description
Capgemini SE operates as a leading global provider, delivering a broad spectrum of professional services that encompass consulting, digital metamorphosis, advanced technology solutions, and engineering expertise. Its extensive operations reach acr...
How the Company Makes Money
Capgemini primarily makes money by selling professional and managed services to organizations under consulting engagements and longer-term delivery contracts. Its main revenue streams include: (1) Consulting and advisory work (often time-and-mater...
Capgemini Earnings Call Summary
Earnings Call Date:Jul 30, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Feb 16, 2027
Earnings Call Sentiment Positive
The call conveys a predominantly positive operational and strategic picture: strong H1 revenue growth (+10%), accelerating electrified vehicle adoption, significant contribution from Mobilize Financial Services, clear product and technology milestones, and demonstrated procurement gains. These positives are tempered by material cost headwinds from raw materials/inflation, ongoing pricing pressure and mix dilution, a decline in Dacia sales, and cashflow/timing items that compress H2 margin upside. Management remains confident on guidance and midterm plan execution, so on balance the positives outweigh the negatives.Positive Updates
Strong Revenue Growth
Group revenue up +10% in H1 2026 versus H1 2025, driven by new product momentum and international launches (Duster India, Boreal Turkey/Brazil, Filante South Korea).
Negative Updates
Raw Material & Inflation Headwinds
Full-year guidance for raw materials and inflation impact around EUR 600 million negative; ~EUR 200 million realized in H1 with management indicating roughly twice that impact in H2 (i.e., H2 materially heavier).
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Revenue Growth
Group revenue up +10% in H1 2026 versus H1 2025, driven by new product momentum and international launches (Duster India, Boreal Turkey/Brazil, Filante South Korea).
Read all positive updates
Company Guidance
Renault reiterated full‑year 2026 guidance of circa 5.5% operating margin and automotive free cash flow of ≈€1.0bn (after H1 operating margin 5.2% and automotive FCF >€600m), with H2 expected to show a slight margin improvement but likely in the lower half of the 5.3–5.7% range; H1 revenue grew +10% (Renault brand sales +3%, India +61%, Dacia -8% with orders +4%, Alpine +69% with ~8,000 units) and electrified vehicles now represent 2/3 of Renault brand sales in Europe (31% of Dacia, +7 pts vs H1‑2025); management expects a full‑year raw materials/inflation headwind of ~€600m (≈€200m in H1, implying roughly twice that impact in H2), received €300m partner down‑payments in H1 that will unwind in H2, expects MFS to pay ~€350m of dividends this year (€250m in H1; midterm target ~€500m p.a.), capitalized ~€90m R&D in H1, foresees H2 CapEx/capitalized R&D slightly higher (Flexis rollout), working capital to remain negative, and continues to target procurement savings (≈€400 per vehicle) and a 20% reduction in manufacturing costs under futuREady.Capgemini Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
61
Positive
Cash Flow
72
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 23.44B | 22.46B | 22.10B | 22.52B | 22.00B | 18.16B |
| Gross Profit | 4.64B | 6.08B | 6.05B | 6.05B | 5.83B | 4.79B |
| EBITDA | 2.64B | 3.06B | 3.23B | 3.19B | 3.14B | 2.53B |
| Net Income | 1.38B | 1.54B | 1.67B | 1.66B | 1.55B | 1.16B |
Balance Sheet | ||||||
| Total Assets | 30.36B | 29.05B | 25.66B | 24.70B | 25.48B | 24.03B |
| Cash, Cash Equivalents and Short-Term Investments | 2.61B | 3.03B | 3.06B | 3.70B | 4.19B | 3.51B |
| Total Debt | 10.17B | 9.46B | 6.08B | 6.59B | 7.55B | 7.64B |
| Total Liabilities | 18.72B | 17.38B | 13.86B | 14.23B | 15.74B | 15.55B |
| Stockholders Equity | 11.61B | 11.64B | 11.78B | 10.45B | 9.73B | 8.47B |
Cash Flow | ||||||
| Free Cash Flow | 2.22B | 2.09B | 2.21B | 2.27B | 2.23B | 2.31B |
| Operating Cash Flow | 2.50B | 2.37B | 2.53B | 2.52B | 2.52B | 2.58B |
| Investing Cash Flow | -4.26B | -3.86B | -1.34B | -383.00M | -659.00M | -678.00M |
| Financing Cash Flow | 2.06B | 1.75B | -2.02B | -2.31B | -1.12B | -1.75B |
Capgemini Technical Analysis
Positive
20.46
Price Trends
22.06
Positive
22.68
Positive
26.04
Negative
Market Momentum
1.03
Negative
69.44
Neutral
99.86
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CGEMY, the sentiment is Positive. The current price of 20.46 is below the 20-day moving average (MA) of 22.38, below the 50-day MA of 22.06, and below the 200-day MA of 26.04, indicating a neutral trend. The MACD of 1.03 indicates Negative momentum. The RSI at 69.44 is Neutral, neither overbought nor oversold. The STOCH value of 99.86 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CGEMY.
Capgemini Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $107.53B | 13.92 | 25.00% | 4.44% | 6.74% | -0.66% | |
76 Outperform | $25.98B | 12.38 | 14.94% | 2.82% | 5.64% | -5.39% | |
75 Outperform | $50.04B | 15.05 | 33.03% | 4.71% | -0.64% | 5.69% | |
70 Outperform | $21.40B | 13.40 | 12.16% | 3.94% | 13.95% | -5.02% | |
67 Neutral | $5.03B | 13.15 | 11.19% | ― | 10.76% | 4.93% | |
65 Neutral | $19.42B | 14.85 | 15.58% | 1.11% | -0.12% | -7.87% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
CGEMY
Capgemini
25.24
-2.73
-9.75%
ACN
Accenture
175.72
-55.21
-23.91%
CTSH
Cognizant
57.67
-10.05
-14.84%
EPAM
Epam Systems
97.43
-54.37
-35.82%
INFY
Infosys
12.53
-2.96
-19.13%
WIT
Wipro
2.02
-0.54
-21.22%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.