1410 GMT - Capgemini lacks a compelling equity story, and there is no clear pathway for the French IT company to generate organic revenue growth above 3% over the next few years, analysts at Morgan Stanley write. Capgemini stock is more expensive relative to the company's earnings than market price, the analysts write as they expect larger cap IT names to struggle in 2026. Revenue will be hard to come by across the sector, with investors instead emphasizing earnings quality, they add. Generative AI will also trouble the sector's margins. Shares in Capgemini fall 4.4% to 144.25 euros. (josephmichael.stonor@wsj.com)

(END) Dow Jones Newswires

January 12, 2026 09:10 ET (14:10 GMT)

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