Capita shares dipped on Tuesday after the outsourcing group reaffirmed financial guidance, announced an uptick in contract wins, and outlined the use of AI agents.
The drop in shares was most likely the result of profit taking after a strong run in the stock, as opposed to any major disappointment with the release.
Capita shares were down 3% at the time of writing.
Capita has reiterated its 2025 financial guidance, expecting broadly flat revenue with operating margin improvements weighted to the second half. The business services group continues to anticipate becoming free cash flow positive by year-end.
The company is making significant strides in artificial intelligence deployment. It was among the first European firms to use Agentforce AI, powered by Salesforce, for volume recruitment – slashing the hiring process from weeks to hours. This marks Capita’s initial foray into “agentic AI”, with over 100 such opportunities identified across the group.
Chief Executive Adolfo Hernandez highlighted exponential growth in client interest for agentic AI solutions. “We are reinvesting a portion of our efficiency savings into new technology solutions, particularly those underpinned by AI,” he said.
The newly established Capita AI Catalyst Lab has identified over 200 use cases across all business areas. Five AI products have launched, with another five in detailed testing. The company is using itself as “client zero” to test solutions before customer rollout.
Internal AI adoption includes Microsoft Copilot generating 150,000 monthly interactions and a ServiceNow transition supporting 25,000 colleagues. Over 10,000 digital learning courses have been completed through the company’s AI, Data and Technology Academy.
Capita remains on track to deliver £250 million in annualised cost savings by December 2025, having achieved £185 million as of mid-June. The group maintains confidence in its medium-term operating margin target of 6-8%.