Capgemini increases its 2026 growth forecast as rising AI transformation investments accelerate enterprise modernization, digital transformation strategy, and enterprise AI services worldwide.
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Capgemini has raised its forecast for the revenue growth rate in 2026 after seeing greater-than-expected interest from companies in adopting AI transformation amid increased investment in enterprise modernization as organizations prepare for the next wave of AI adoption. The new forecasts show the increasing demand for AI-based enterprise services as firms adopt digital transformation strategies and update legacy systems in the backdrop of an AI revolution.
The French IT consulting major now anticipates revenue growth of 8.5% to 9% annually on a constant currency basis, up from a prior forecast of 6.5% to 8.5%, following a jump of 9.2% in second-quarter bookings to €6.55 billion. "Our backlog is up substantially as firms have shifted from experimenting with AI to implementing the technology broadly," Capgemini chief Aiman Ezzat stated.
Capgemini highlighted that the clients are not just investing in AI software but also in upgrading their business applications, workflows, and internal data infrastructure. In this context, the Capgemini Applications business posted 5% growth as customers were renewing their older enterprise software, whereas the Operations & Engineering business saw a 24.7% increase in revenue driven by higher demand for AI business processes due to the WNS acquisition.
In addition, the company mentioned the high demand among their clients in North America and the UK. Moreover, there is an increasing spend in Europe on defense, cybersecurity, and technology sovereignty. Overall momentum in the industry also positively impacted other tech consultancy companies.
The Capgemini revenues for the first half came to €12.08 billion, which showed 11.3% growth on a constant currency basis. Though an increase in the costs of restructuring decreased net income by 31.3%, Capgemini confirmed its margin guidance of between 13.6% and 13.8% as well as its free cash flow guidance of €1.8 billion to €1.9 billion.
The new forecast highlights the increasing significance of AI-powered modernization projects, as businesses look for scalable solutions rather than one-off artificial intelligence projects. Business Honor believes AI transformation is reshaping enterprise growth, with organizations investing in intelligent automation, modernized digital infrastructure, and scalable technology to strengthen long-term competitiveness and resilience.
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