Capita (LON:CPI) Releases Quarterly Earnings Results

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

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 Price Performance

CPI opened at GBX 277 on Thursday. 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 stock has a market capitalization of £315.08 million, a P/E ratio of 20.43, a PEG ratio of 0.18 and a beta of 0.66. The stock has a 50-day moving average price of GBX 373.07 and a 200-day moving average price of GBX 336.65. Capita has a 12-month low of GBX 168 and a 12-month high of GBX 415.50.

Trending Headlines about Capita

Here are the key news stories impacting Capita this week:

• Positive Sentiment: Canaccord Genuity reiterated a “buy” and set a substantially higher price target of GBX 900 — a bullish analyst view that signals upside expectations for Capita’s recovery and could support the share price over the medium term. Digital Look
• Positive Sentiment: Insiders are increasing exposure: CEO saw a fourth tranche of a buy-out award vest (increasing his stake), and CFO Pablo Andres has made multiple open-market purchases (individual trades reported at ~GBX 275–280 and total purchases reported around £100k), which investors often view as a signal of management confidence. CEO stake vesting
• Positive Sentiment: CFO Pablo Andres’ disclosed purchases (multiple trades at ~GBX 275–280 totalling tens of thousands of pounds) reinforce insider buying momentum. CFO purchases
• Neutral Sentiment: Capita reported quarterly EPS of GBX 49.71 with ROE ~8.48% and a thin net margin (~0.69%). The numbers provide a current earnings snapshot but the outlook comments drove market reaction. Earnings release
• Negative Sentiment: Management guided to a weaker 2026 margin driven by contact-centre weakness and higher costs (the company flagged margin pressure despite progress on AI initiatives). This guidance is the primary driver of today’s downward pressure on the stock. Weak 2026 margin outlook
• Negative Sentiment: Berenberg cut its price target to GBX 330 and moved to a “hold” rating, reflecting more cautious sentiment from another broker and reducing near-term analyst support. Digital Look
• Negative Sentiment: Market coverage highlights that shares fell after the weaker outlook — media commentary and analyst downgrades have amplified selling pressure. Market reaction

Insiders Place Their Bets

In other news, insider Pablo Andres bought 12,178 shares of the business’s stock in a transaction on Wednesday, March 11th. The stock was acquired at an average price of GBX 280 per share, with a total value of £34,098.40. 13.40% of the stock is owned by insiders.

Wall Street Analysts Forecast Growth

CPI has been the topic of a number of analyst reports. Berenberg Bank decreased their price objective on Capita to GBX 330 and set a “hold” rating on the stock in a research note on Wednesday. Canaccord Genuity Group reiterated a “buy” rating and issued a GBX 900 target price on shares of Capita in a research note on Wednesday. Three investment analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company’s stock. According to data from MarketBeat, Capita presently has a consensus rating of “Moderate Buy” and an average target price of GBX 489.

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.