Capgemini Q1 results: French IT consulting giant Capgemini CAPP.PA disclosed a decrease in first-quarter revenue on Tuesday, marking a downturn compared to the corresponding period last year, attributing it to an anticipated deceleration in the market.

The company's revenue experienced a decline of 3.5 per cent, totaling €5.53 billion in the initial three months of 2024, in contrast to the €5.73 billion recorded in the same period of the previous year.

CEO Aiman Ezzat acknowledged the prevailing market conditions, stating, "As anticipated, the market continued to slow down in Q1, and we confirm the growth trough is now behind us."

Ezzat further elaborated on the outlook, expressing optimism for a turnaround in the latter part of the year, stating, "We expect the market to gradually pick up toward an attractive exit growth rate in Q4, setting up for a more tangible acceleration in 2025."

Order bookings also witnessed a parallel decline of 3.5 per cent, amounting to €5.66 billion in the quarter.

The company's workforce contracted by 6 per cent compared to the same period last year, with headcount standing at 337,200 employees by the end of March.

In North America, Capgemini's second-largest market contributing 28 per cent of group revenues, sales experienced a notable downturn of 7.1 per cent, following a decline of 6.6 per cent in the fourth quarter of 2023.

Despite the challenges, the company reaffirmed its outlook for fiscal year 2024.

(With Reuters inputs.)