Capgemini Expects 28% Of Its Revenue To Come From Intelligence Products
The world is going towards the digital era in which intelligent products improve people’s lives. Today, the biggest companies leverage Artificial Intelligence and machine learning to design smart software-enabled products for specific purposes. Capgemini, a multinational IT and consulting company, announced that it expects 28% of its revenue to come from intelligent products and services in the next three years.
The report released by Capgemini Research Institute highlights that with digital innovation, the customer demand for Intelligent products increased, leading the company to focus more on AI-based products and services. This company’s move is also crucial from the investment point of view. As an emerging intelligent service provider, investors looking to invest in Capgemini can expect better returns. In this blog, we will discuss Capgemini’s future plan to generate revenue from intelligence products and how it will impact Capgemini share price.
Capgemini’s Transition From Traditional To Intelligent Products
In the research, Capgemini mainly focuses on the reason for its transition from traditional to intelligent products. Per the records, various organisations solely focused on traditional products to solve the end customers’ and businesses’ major problems.
However, with the rise of AI, it is noticed that more than 80% of organisations acknowledged that the shift to intelligent products is a key trend that has impacted their industries. After analysing the ever-evolving demands and changes in the IT industry, Capgemini emphasised moving towards intelligent products and services. The company is expected to generate 28% of its overall revenue with it.
Revenue Distribution Of Capgemini
Since Capgemini claims it will generate around 23% of its overall revenue from intelligent products, you must understand its revenue distribution in terms of services in the last few years. The metric largely impacts the performance of Capgemini unlisted shares actively traded in the grey market.
For investors, it is crucial to get an overview of the company’s revenue distribution and Capgemini unlisted share price to forecast its growth.
As we can see from the above graphics, the revenue distribution of Capgemini from different years gives a better picture of how much each of its services contributes towards overall revenue.
Over the years, Capgemini generated most of its revenue from the Application and Technology service section, 71% in 2019, 62% in 2020, and 63% in 2022. Capgemini’s second-highest revenue-generating service throughout 2019-2022 was operating & engineering, which contributed 22% in 2019, 31% in 2020 & 2021, and 29% in 2022. However, the service that generated the least revenue for Capgemini was Strategy and Transformation, whose share percentage was 7-8% throughout this period.
So, there are higher chances that the intelligent products and services can exceed the preset mark of Capgemini and emerge as a majority revenue-generating service in the future. The reason behind it is the rising demand for AI among businesses and Capgemini’s strong position in the market.
Predicted Future Performance Of Capgemini In Grey Market
There are possibilities that the demand for Capgemini intelligent products and services will surge in the future. It is due to the major shifting of different types of businesses and enterprises towards AI-based tools and software. The company will gain a positional advantage since Capgemini is a market leader in providing IT and consulting services.
On the other hand, investors can also expect a rise in Capgemini share price with the company’s increasing revenue in the coming years. Here are the possible future performance of Capgemini in the unlisted share market:
Positive Financial Performance
The financial performance of Capgemini in the grey market has been satisfactory in the last few years. In terms of revenue, the company continuously recorded positive growth at an average CAGR of 19.79%. Investors can expect positive financial results from the company’s side.
High Demand For Unlisted Shares
Since the company claims to generate 28% of its revenue from intelligence products, it will largely attract investors. As a result, the demand for Capgemini pre-IPO stocks will increase, which may impact their availability for retail investors.
Increase In Capgemini Share Price
With the company’s improved performance in the grey market, investors can expect a surge in Capgemini unlisted share price. Currently, the price of Capgemini shares in the unlisted share market is Rs 10,850 per equity share. However, the future price of its shares will majorly depend on the company’s performance in the market.
Invest In Capgemini Unlisted Shares For High Returns
Capgemini has emerged as a tech-oriented company which is now taking a step towards artificial intelligence. For investors, it is suggested to pick such futuristic companies to get high returns on investment. You can buy Capgemini unlisted shares online by using online trading platforms like Stockify.
On this platform, you will get assistance from expert brokers throughout the trading process. In addition, you can quickly check the Capgemini updated share price and financial performance of various fiscal years to make a better investment decision. Plan your investment in Capgemini Pre-IPO shares now!