Capita (LON:CPI) Releases Quarterly Earnings Results

Capita (LON:CPI) announced its quarterly earnings results on Tuesday. The company reported GBX 49.71 earnings per share (EPS) for the quarter, Digital Look Earnings reports. Capita had a return on equity of 8.48% and a net margin of 0.69%.

Here are the key takeaways from Capita’s conference call:

• We delivered a £250m cost savings program, lifted operating margin by 140bps to 5.2%, saw profit before tax improve 84%, cash conversion rise to 74%, and expect positive free cash flow of £20–40m in 2026.
• Management says AI is now operational—the Catalyst Lab and agentification stack are deployed across front/middle/back office work, about two‑thirds of revenue includes AI elements, the pipeline nearly doubled to ~£20bn and win rates have risen above 60%, which management links to future growth and competitiveness.
• The Contact Centre business is a clear weakness with substantial revenue declines, a goodwill impairment, structural P&L issues (notably losses in Germany and ~£50m of underutilized property costs), and is expected to remain loss‑making in 2026 despite ~£50m of cost savings.
• The Civil Service Pension Scheme had severe legacy data and backlog problems on handover (thousands of unpaid or disputed cases), and although service metrics have improved and remediation is underway, it remains a material operational risk and cost for the company.

Capita Stock Performance

Shares of CPI stock opened at GBX 287.50 on Wednesday. The company has a current ratio of 0.67, a quick ratio of 0.53 and a debt-to-equity ratio of 409.05. The company’s fifty day moving average price is GBX 375.32 and its 200-day moving average price is GBX 336.96. The stock has a market cap of £327.03 million, a PE ratio of 21.20, a price-to-earnings-growth ratio of 0.18 and a beta of 0.66. Capita has a 12 month low of GBX 168 and a 12 month high of GBX 415.50.

Insider Buying and Selling at Capita

In other Capita news, insider Pablo Andres bought 12,178 shares of the stock in a transaction dated Wednesday, March 11th. The stock was purchased at an average cost of GBX 280 per share, for a total transaction of £34,098.40. Corporate insiders own 13.40% of the company’s stock.

Capita News Summary

Here are the key news stories impacting Capita this week:

• Positive Sentiment: Senior insiders bought stock — Capita’s CFO Pablo Andres disclosed a ~£100k/36,xxx-share purchase, signaling management confidence. Capita CFO Pablo Andres Increases Stake with £100k Share Purchase
• Positive Sentiment: Other insider buying — Chief People Officer Scott Hill also purchased shares recently, adding to insider-led confidence signals. Capita Discloses Share Purchase by Chief People Officer Scott Hill
• Positive Sentiment: Operational progress cited — Capita says 2025 was pivotal, reporting profit growth, contract wins and acceleration of its AI-led transformation, which supports a mid‑to‑longer term recovery narrative. Capita boosts profit and contract wins as AI-led transformation gathers pace
• Neutral Sentiment: Quarterly results released — Capita reported GBX 49.71 EPS for the quarter, with a net margin of 0.69% and ROE 8.48%; the company published its conference-call transcript and slide deck for investors to review. Capita Earnings & Conference Call Slide Deck
• Negative Sentiment: Near-term margin guidance disappointed — Management guided to lower 2026 margins citing contact-centre weakness and higher costs, which provoked an earlier selloff and remains a near-term headwind. Capita’s shares tumble as it guides for lower profit margin

Analyst Ratings Changes

Separately, Canaccord Genuity Group restated a “buy” rating and issued a GBX 900 price objective on shares of Capita in a report on Monday, December 15th. Three research analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus target price of GBX 494.

Capita Company Profile

Capita is a modern outsourcer, helping clients across the public and private sectors run complex business processes more efficiently, creating better consumer experiences. Operating across 8 countries, Capita’s colleagues support primarily UK and European clients with people-based services underpinned by market-leading technology. We play an integral role in society – our work matters to the lives of the millions of people who rely on us every day.