Capgemini (ENXTPA:CAP) has been chosen as the UK Financial Services Compensation Scheme’s long term technology partner, under a new contract that highlights its AI and automation capabilities for modernising FSCS systems and decision-making.
Capgemini’s latest FSCS win lands as momentum in the share price has picked up recently, with a 30 day share price return of 19.29% and a 90 day gain of 41.08%. However, the year to date share price return is still down 9.91% and the 5 year total shareholder return has declined 29.33%.
Scan for other AI focused contractors that may be riding similar contract momentum using our curated list of 55 AI infrastructure stocks as governments and financial institutions upgrade their technology stacks.
Bulls see Capgemini’s AI contracts and recent rebound as a reset. Bears see a bruised 5 year record and a question mark. Which story does the current valuation support next?
Most Popular Narrative: 10% Undervalued
The latest narrative fair value of €140.51 sits above Capgemini’s last close at €126.80, which frames the recent contract win inside a wider rerating story that still leaves some upside implied by that framework.
Capgemini's expanding leadership and strong deal wins in advanced cloud, data, and artificial intelligence, including generative and agentic AI, are now supported by a €12.6b bookings pipeline and a book to bill of 1.04 in H1 2026. This points to continued conversion into higher value contracts that can support revenue growth and operating margin gains.
See why 52 investors see Capgemini as 10% undervalued.
Result: Fair Value of €140.51 (UNDERVALUED)
Still, Capgemini’s €6.5b net debt and €700m restructuring bill for 2026 to 2027 could pressure earnings and challenge the current undervaluation narrative.
Find out about the key risks to this Capgemini narrative.
Next Steps
Mixed signals or fresh start. Either way, move quickly to test Capgemini’s contract story against both the risks and the upside using 3 key rewards and 3 important warning signs.
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