By Michael Susin

Capgemini shares rallied on Tuesday after the company reiterated its full-year guidance amid a cautious outlook, despite posting lower revenues.

The stock was up 10% at 143.45 euros at the European morning trading. Over the last three months, however, shares are down nearly 25%.

The French consulting and technology group on Tuesday said first-quarter revenue fell 0.4% at constant exchange rate to 5.55 billion euros ($6.34 billion). On a current-exchange rate basis, revenue rose 0.5%.

At constant exchange rates, revenue in France and North America regions--which represent 20% and 28% of group revenue--declined 4.9% and slightly increased 0.8%, respectively. Revenue in the rest of Europe--which represents 31% of group revenue--fell 2.3%, reflecting a drop in the manufacturing sector.

Capgemini backed its full-year guidance of constant-currency revenue growth of minus 2.0% to 2.0% as the macroeconomic backdrop remains volatile, with an operating margin between 13.3% to 13.5% for 2025. It also anticipates organic free cash flow of around 1.9 billion euros.

According to JPMorgan analysts, the market expected a quarterly revenue drop of 1.3% and comes after recent warnings from peers such as Infosys, Wipro & Alten.

However, this is unlikely to significantly change the market consensus given the macroeconomic uncertainty, the analysts added.

Write to Michael Susin at michael.susin@wsj.com

(END) Dow Jones Newswires

April 29, 2025 03:55 ET (07:55 GMT)

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