Capgemini expects annual revenue to fall on North America market weakness By Reuters

(Reuters) -French IT consulting group Capgemini said on Friday it now expects its annual revenue to fall compared with the earlier expectation of at least maintaining stable growth, citing weakness in the North American market.

The Paris-based group said it now expects its organic sales to fall between 0.5% and 1.5%, compared with the 0-3% rise previously forecast.

“The slope of recovery in the second half will be affected by the recent deterioration of the outlook in the automotive and aerospace sectors and the slower recovery in financial services,” CEO Aiman Ezzat said in a statement.

The group confirmed its 2024 operating margin and organic free cash flow targets.

The group’s total headcount stood at 336,900 at the end of June, down 4% year-on-year. The group’s headcount was 337,200 at the end of March.

Capgemini has slowed hiring since 2023, ending the year with 5% fewer resources than it started it with, a first since 2009.

The French IT consulting group reported H1 revenue of 11.14 billion euros ($12.09 billion), down 2.5% year-on-year on a reported basis.

($1 = 0.9211 euros)