Investing.com -- BofA Securities kept three companies as its top picks in European IT services after most of the firms in its coverage that have reported third-quarter results raised their forecasts.
The picks are Capgemini, Netcompany and Computacenter. Capgemini raised its 2026 revenue growth target for the second time this year after third-quarter revenue rose 12%, while Netcompany lifted its sales growth forecast and Computacenter raised its profit outlook.
Twelve companies in BofA's coverage have reported so far, with 10 remaining. Ten of the 12 beat revenue expectations, with only Temenos and Netcompany missing. All four that reported profit beat expectations.
Most companies raised guidance, including Dassault Systèmes, SAP, Temenos, Capgemini, Netcompany and Sopra Steria. Payments firm Adyen was the only one to cut its margin forecast, after deciding to invest in new acquisitions to meet strong demand.
BofA said the results showed no clear signs of AI disrupting the sector's business and no material hit from political uncertainty in France or the Middle East.
Capgemini now expects 2026 revenue growth of 9% to 9.5% at constant exchange rates, up from 8.5% to 9%.
Third-quarter revenue was €6.07 billion, and bookings rose 3.4% to €5.40 billion. Growth was strongest in Britain and Ireland at 25.2% and in North America at 18.3%. France grew 4.9%, a second straight quarterly increase.
CEO Aiman Ezzat said growth beat analyst expectations and outpaced the sector, with demand centred on overhauling clients' data systems to adapt their business to AI.
The company targets fourth-quarter growth of 3% to 4%, which Ezzat said reflects earlier acquisitions entering the comparison base rather than weaker demand.
Netcompany raised its 2026 sales growth forecast to between 18% and 20.5%, up from 16% to 20.5%. It left its earnings margin guidance unchanged.
Computacenter said third-quarter performance was ahead of its own expectations. It now expects 2026 adjusted pretax profit of at least £425 million, about 9.8% above the company-compiled analyst consensus of £387.1 million. This is its second upgrade in less than two months.
Its committed product order backlog hit a record £12.6 billion at the end of the third quarter, up from £9.3 billion at the end of June, on strong orders from hyperscale, neocloud and enterprise customers in North America and Britain.
Original Article
BofA Names Top Picks in European IT Services as Most Raise Q3 Guidance
Clariant shares fall as Deutsche Bank flags rising litigation risks
Premarket movers: Trump Media, AI infrastructure stocks fall; AMD jumps
