Capgemini cuts 2024 revenue target again after soft markets hit third-quarter sales By Reuters

(Reuters) – French IT consultancy group Capgemini cut its 2024 revenue target for the second time this year on Wednesday after continued weakness in some of its markets, particularly manufacturing, hit its third-quarter sales.

The group, which offers services ranging from cloud and AI to enterprise management across a wide range of industries, in July forecast a surprise drop in its annual revenue due to declines in the automotive and aerospace sectors.

It now expects its revenue to fall between 2% and 2.4% on a constant currency basis, down from a previous forecast of a 0.5% to 1.5% decline.

Capgemini’s revenue fell 1.6 percent at constant exchange rates to 5.38 billion euros ($5.82 billion) in the third quarter.

“In a market that remains soft overall, we expect to achieve similar growth in Q4,” Chief Executive Ayman Ezzat said in the earnings report, although he added that the company expects headwinds in the technology and telecom sectors to gradually ease.

“Customer demand continues to be driven by operational efficiency and cost reduction, and we are benefiting from their growing appetite for AI and Gen AI services,” said Ezzat.

($1 = 0.9244 EUR)

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