Paris – Shares of Capgemini fell more than 2% Tuesday, February 16, 2026, as several financial analysts lowered their price targets for the stock despite maintaining largely positive ratings. The decline contrasts with the broader CAC 40 index, which showed gains.
Oddo BHF reaffirmed its “Outperform” rating on Capgemini but reduced its price target from €180 to €160, citing a broad “derating” of global IT Services companies following recent market volatility. According to Oddo BHF, these companies are now valued at 10 times forward EV/EBIT over the next 12 months, down from over 12.5 times previously. The firm acknowledged a strong finish to 2025, suggesting a positive outlook for 2026, and highlighted Capgemini’s estimated free cash flow yield of 11%.
The revision follows Capgemini’s announcement of the sale of its American subsidiary, Capgemini Government Solutions (CGS), which represents approximately 0.4% of the Group’s 2025 revenue and less than 2% of its revenue in the United States. Oddo BHF stated the decision stemmed from controversy surrounding CGS’s work with the U.S. Immigration and Customs Enforcement (ICE) federal entity. Capgemini determined that legal constraints imposed in the United States for contracting with federal entities involved in classified activities prevented the Group from exercising appropriate control over certain aspects of the subsidiary’s operations, hindering alignment with the Group’s objectives.
Bank of America reiterated its “Buy” recommendation for Capgemini following the company’s recent earnings release, but also lowered 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, with the median target approximately 30 basis points above the current consensus. Bank of America also raised its EBITDA expectations for Capgemini, noting the stock’s relative valuation is at multi-year lows, with a discount of around 50% compared to its peers.
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. An analyst noted that, “in light of the anxious context surrounding the Tech sector in connection with fears of disruption by AI, Friday’s publication proved reassuring.”
