Capgemini (CAP FP) France
Technology
CAP's share price has shown weakness since the announcement of a below-consensus guidance for FY25, highlighting concerns about its underperformance compared to peers and the delayed recovery of the IT services industry. Its revenue mix, with significant exposure to manufacturing in Europe, limits its growth compared to offshore competitors like TCS, Infosys and Cognizant, which are benefitting from recovery in financial services. Despite AI creating high expectations, its impact on bookings remains limited, causing delays in decision-making; however, AI presents significant opportunities in IT services as it drives demand for business transformation.
Edition: 206
- 07 March, 2025
Cognizant Technology Solutions Corp (CTSH)
Technology
Respondents that directly procure from Cognizant have noted spending levels marginally ahead of estimates. It appears that the re-acceleration in IT spending levels has been slower than initially expected. There has been a noticeable decline in spending on onshore advisory services, which was partially offset by growth in offshore services, particularly in the managed service space, which has largely played into Cognizant’s hands, which have been extremely reactive in pivoting to offshore delivery. Cognizant has bolstered its presence in AI and Cybersecurity.
Edition: 188
- 14 June, 2024