French IT consulting giant Capgemini reported a 3.5% decline in first-quarter revenue to $5.92 billion from $6.1 billion, attributing the dip to an anticipated market slowdown. CEO Aiman Ezzat expressed confidence in a gradual recovery throughout the year, foreseeing a potential acceleration in 2025, with an optimistic outlook for reaching an attractive growth rate by the fourth quarter. Despite the soft performance in Q1, Capgemini reiterated its expectation of flat to 3% sales growth for the year, signaling a positive trajectory for the company.
While North America, Capgemini's second-largest market, saw a 7.1% revenue decline, marking a challenging quarter, Ezzat emphasized a projected improvement from the sales trough in Q1. The company's order bookings also fell by 3.5%. Additionally, Capgemini witnessed a 6% decrease in its headcount, with 337,200 employees by the end of March 2024 compared to the previous year. Despite these challenges, Capgemini's shares saw a modest decline of 1%, closing at $219.26 per share, indicative of measured investor sentiment amid the company's strategic positioning for future growth.
