Capgemini is heavily investing in artificial intelligence to drive future sales growth, projecting revenue increases of 6.5% to 8.5% by 2026. The French IT company partners with major players like Microsoft, Alphabet (Google), and Mistral to deliver AI products, seeing strong demand for these tools, particularly from the defense industry. Despite a 4.2% decline in net income to 1.6 billion in 2025, Capgemini's revenue reached 22.5 billion, indicating a strategic shift towards AI-led programs and intelligent operations.
While AI fuels growth for some, it also presents challenges, particularly for traditional software companies. Anthropic's Claude AI program, with its new version simplifying software coding, raises concerns that businesses might develop their own solutions rather than purchasing from providers. Goldman Sachs estimates 30% of software revenue is at risk, impacting ETFs like the iShares Expanded Tech-Software Sector. Conversely, Mitek Systems is seeing increased demand for its AI-driven fraud prevention, reporting strong fiscal first-quarter results with $44.2 million in revenue, beating analyst estimates.
In the AI startup space, Legora, founded in 2023, is reportedly in discussions to triple its company value to $6 billion, with an existing investor likely leading the new funding round. Legora offers a collaborative platform for legal teams, enhanced by a new AI legal plugin for the Claude chatbot that assists with tasks like contract review. Meanwhile, BigBear.ai, an AI-powered decision intelligence specialist for defense and commercial sectors, saw its stock drop 7.7% on Friday, closing at $5.20, as investors monitor its path to profitability.
Other companies are also leveraging AI for growth, with BLIN experiencing double-digit increases driven by its HawkSearch and other AI products. HawkSearch alone accounts for 60% of BLIN's revenue, maintaining strong gross margins. The significant value placed on AI is further underscored by the sale of the AI.com domain for 634 crore Rupees in 2025, a domain originally purchased for just 300 in 1993, reflecting the immense growth and strategic importance of artificial intelligence.
Key Takeaways
- Capgemini expects 6.5% to 8.5% revenue growth by 2026, driven by AI, partnering with Microsoft, Alphabet (Google), and Mistral.
- AI startup Legora is in talks to triple its valuation to $6 billion, offering a legal platform and integrating with Anthropic's Claude chatbot.
- Anthropic's Claude AI program's new version, which simplifies software coding, poses a threat to traditional software companies, with Goldman Sachs estimating 30% of software revenue at risk.
- Mitek Systems received a "buy" upgrade from Jefferies due to strong demand for its AI-driven fraud prevention, reporting $44.2 million in revenue in its fiscal first quarter.
- BigBear.ai stock dropped 7.7% to $5.20, as the company, specializing in AI for defense and intelligence, navigates its path to profitability.
- BLIN is experiencing double-digit growth, with its HawkSearch product, an AI-driven solution, accounting for 60% of its revenue.
- The domain name AI.com sold for 634 crore Rupees in 2025, highlighting the significant value placed on AI-related digital assets.
- London's FTSE indexes showed mixed results, with concerns about AI disruption contrasting with gains in defense stocks due to expectations of European cooperation.
- Capgemini's 2025 revenue reached 22.5 billion, but net income declined 4.2% to 1.6 billion, despite strong AI demand.
- The iShares Expanded Tech-Software Sector ETF is down 10% this year, indicating investor concerns about AI's impact on software providers.
Capgemini Shifts to AI for Future Sales Growth
Capgemini CEO Aiman Ezzat announced the French IT company is focusing on artificial intelligence to boost sales. The company expects revenue to grow 6.5% to 8.5% in 2026. Capgemini partners with firms like Microsoft, Alphabet, and Mistral to offer AI products. Its 2025 revenue reached 22.5 billion, but net income declined 4.2% to 1.6 billion. Despite an economic slowdown, Capgemini sees growing demand for AI tools and sovereign technology, especially from the defense industry.
Capgemini Focuses on AI and Sovereignty for Growth
Capgemini announced that its focus on artificial intelligence and sovereignty will drive future growth. The company expects revenue to increase by 6.5% to 8.5% in 2026, fueled by AI-led programs and Intelligent Operations. In 2025, Capgemini's revenue was 22.5 billion, but net income fell 4.2% to 1.6 billion. Despite an economic slowdown and cautious customer spending, Capgemini sees strong demand for AI tools and sovereign technology, particularly from the defense sector.
BigBear.ai Stock Falls 7.7 Percent on Friday
BigBear.ai stock, traded as BBAI on the NYSE, dropped 7.7% on Friday. Shares closed at $5.20, down from $5.63. The company specializes in AI-powered decision intelligence for defense, intelligence, and commercial industries. BigBear.ai aims to secure new contracts and expand its market reach. Investors are closely watching its financial performance and path to profitability amid current economic challenges.
AI Startup Legora May Reach 6 Billion Dollar Value
AI startup Legora is in discussions to triple its company value to $6 billion. An existing investor will likely lead this new funding round. Legora, founded in 2023, offers a collaborative, production-grade platform for legal teams. Its CEO, Max Junestrand, highlighted Legora's comprehensive tools after a new AI legal plugin for the Claude chatbot was released. This plugin helps lawyers with tasks like contract review and generating legal briefings.
BLIN Sees Strong Growth from HawkSearch and AI Products
BLIN is experiencing double-digit growth thanks to its HawkSearch and other AI products. These core products and AI-driven solutions have boosted both revenue and customer numbers. HawkSearch now makes up 60% of the company's revenue, with net revenue retention at 107%. BLIN maintains strong gross margins and expects continued double-digit growth, especially in business-to-business markets.
London Stocks Mixed as AI Worries and Defense Gains
London's FTSE indexes were quiet on Friday as investors considered concerns about AI disruption. However, defense stocks like BAE Systems, Rolls-Royce, and Babcock International saw gains due to expectations of greater European cooperation. Tech stocks rebounded 3.8%, including RELX. Miners such as Rio Tinto weighed on the FTSE 100. NatWest shares fell 3.3% despite earnings, and investors expect the Bank of England to cut borrowing costs in March.
Jefferies Upgrades Mitek Systems Due to AI Fraud Demand
Jefferies upgraded Mitek Systems to a "buy" rating, expecting its shares to rise due to increasing demand for AI-driven fraud prevention. Analyst Surinder Thind raised the price target to $15, predicting a 30% upside. Mitek Systems reported strong fiscal first-quarter results, earning 26 cents per share on $44.2 million in revenue, beating analyst estimates. The company's Fraud & ID business is growing, especially with the rise of synthetic AI fraud. Mitek's Check Verification business also remains strong, processing 1.2 billion transactions yearly with 99% market share.
AI Now Threatens Software Stocks Investors Learn Diversification
While AI boosted tech stocks in 2025, it now poses a threat to software companies. Anthropic's Claude AI program released a new version that simplifies software coding, leading to fears that companies will build their own software instead of buying from providers. Goldman Sachs estimates 30% of software revenue is at risk. The iShares Expanded Tech-Software Sector ETF is down 10% this year. This shift highlights the importance of diversified portfolios for investors.
AI.com Domain Sells for 634 Crore Rupees in 2025
The domain name AI.com sold for a massive 634 crore in 2025, making it one of the internet's most expensive domain deals. A Malaysian man originally bought the domain for just 300 in 1993 when the internet was new. For decades, the domain was a valuable digital asset. As artificial intelligence grew to power many industries, the value of the short, memorable domain skyrocketed. A major global tech player is believed to be the buyer, seeking a powerful digital identity in the AI space.
Sources
- Capgemini ‘clearly pivoting’ in AI bid to bolster sales
- Capgemini Says AI Pivot, Sovereignty Push Will Drive Growth
- BigBear.ai (NYSE:BBAI) Trading Down 7.7%
- AI Startup Legora in Talks to Triple Valuation to $6 Billion
- BLIN: HawkSearch and AI products drive double-digit growth, strong margins, and expanding B2B wins
- London's FTSE indexes subdued as investors assess AI concerns; defence stocks gain
- Jefferies turns bullish on AI fraud software name as demand accelerates
- The Lesson for Investors As the AI Trade Cuts the Other Way
- AI.com: From ₹300 in 1993 to ₹634 Crore Sale in 2025 | Internet’s Biggest Domain Deal
Comments
Please log in to post a comment.