Capgemini: Broker Target Cuts Despite Positive Outlook | Stock News

Capgemini Shares Dip as Brokers Lower Targets

Paris – Shares of Capgemini are trading lower on Tuesday, February 16, 2026, bucking the trend of the broader CAC 40 index. The decline comes as several financial analysts have reduced their price targets for the stock, despite maintaining generally positive ratings.

Oddo BHF reaffirmed its outperform rating on Capgemini but lowered its target price from €180 to €160. This adjustment, according to the firm, reflects a broad “derating” of global IT Services companies following recent market volatility, valuing them at 10 times forward EV/EBIT over the next 12 months, down from over 12.5 times previously.

Despite the lowered target, Oddo BHF acknowledged a strong finish to 2025, suggesting a positive outlook for 2026. The firm also highlighted Capgemini’s estimated free cash flow yield of 11%, which it considers attractive.

Bank of America reiterated its buy recommendation for Capgemini following the company’s recent earnings release, but also reduced its price target to €145, based on current market conditions. The broker noted a solid fourth quarter performance and believes the company’s initial organic growth target of 2% to 3.5% for 2026 is prudent. They also indicated that the median target is approximately 30 basis points above the current consensus.

Bank of America also raised its EBITDA expectations for Capgemini and believes the stock’s relative valuation – currently at multi-year lows with a discount of around 50% compared to its peers – will provide support.

Invest Securities also reiterated its buy view on Capgemini, but lowered its target price to €200, from €232, to account for ongoing uncertainty in the technology sector. The analyst covering the stock believes the company’s recent earnings release was reassuring, given the anxieties surrounding potential disruption from artificial intelligence.

The news follows a recent report on February 12, 2026, that Capgemini exceeded its full-year revenue target, driven by accelerating fourth-quarter growth and contributions from its recently acquired WNS unit. Revenue grew 3.4% at constant exchange rates to €22.47 billion ($26.65 billion) in 2025.

Capgemini CEO Aiman Ezzat stated that generative and agentic AI accounted for more than 10% of group bookings in the fourth quarter, up from around 5% earlier in the year. The company has identified approximately 100 cross-selling opportunities with WNS and secured an intelligent operations contract worth over €600 million, encompassing multiple business functions and processes linked to agentic AI transformation.

Looking ahead, Capgemini forecasts revenue growth of 6.5% to 8.5% at constant exchange rates for 2026, with approximately 4.5 to 5 percentage points of that growth expected to come from acquisitions, primarily WNS. The company also anticipates an operating profit margin between 13.6% and 13.8%, up from 13.3% in 2025.

Organic free cash flow is projected to be in the range of €1.8 billion to €1.9 billion, slightly below the €1.95 billion recorded last year due to anticipated restructuring costs. Capgemini expects to incur around €700 million in restructuring charges over the next two years, with the majority occurring in 2026, as it adapts its workforce and skills to meet the growing demand for AI-driven services.