French IT consulting firm Capgemini reported a 2% drop in its annual constant currency sales on Tuesday, but narrowly beat market expectations, helped by sustained demand for its cloud and AI services.

The consulting and technology group’s shares fell after it said it remains cautious on its outlook and reported lower revenue as customers were slow to make spending decisions.

Capgemini, whose services range from cloud and AI to enterprise management across a wide array of industries, expects 2025 sales to come between a 2 per cent decline and a 2 per cent rise in constant currency, with an operating margin of 13.3 per cent to 13.5 per cent.

French IT consulting giant Capgemini reported a 2 per cent decline in its annual constant currency sales, totaling 22.10 billion euros (USD 23.11 billion), but narrowly surpassed market expectations,

"Generative AI supported strong bookings and accounted for around 5% of bookings in Q4," CEO Aiman Ezzat said in the earnings statement. Capgemini attributed the continued client demand to the appeal of efficiency and cost-optimization programs,