Capita expects 2026 margin decline amid higher costs
Capita expects its 2026 adjusted operating margin to decline slightly. Weakness in contact centres and higher project costs are cited as the primary reasons.
British outsourcing provider Capita plc announced on Tuesday that it expects a slight decline in its adjusted operating margin for 2026. The firm, headquartered in the United Kingdom, cited ongoing weakness in its contact centre division and the rising costs associated with launching new projects as the primary drivers for the anticipated dip. Outsourcing and business-services firms have been navigating a difficult operating environment as clients delay major spending decisions amid subdued economic confidence and geopolitical uncertainty. These external pressures have coincided with internal challenges for the company, which has been dealing with contract losses and revenue contraction in several key business units. The contact centre division at the heart of the current weakness provides a range of services, including call centre management, social media engagement, and broader digital customer support. Capita provides these and other professional services across both the public and private sectors. Looking ahead, the company expects to deliver low single-digit growth in adjusted revenue for 2026 relative to 2025. This forecast follows a period where adjusted revenue fell by 1.2% last year to 2.2 billion pounds ($2.96 billion). Current market consensus among analysts suggests a revenue target of 2.33 billion pounds for the 2026 fiscal year.
