Capita maintains growth forecast as public sector revenue rises

Monday 18 May 2026 - 08:30

British outsourcing company Capita has reaffirmed its annual revenue growth forecast after reporting stronger performance in its public sector operations during the first months of 2026.

The company stated that increased government-related activity and ongoing restructuring efforts helped support its financial outlook despite broader economic uncertainty and previous contract losses.

Capita, which provides support and administrative services to both public and private sector clients, said revenue in its public service division continued to grow steadily. The unit, which represents the majority of the group’s income, benefited from higher volumes linked to government contracts and public administration services.

According to the company, its order book increased significantly compared with the previous year, reflecting stronger demand and new business opportunities. Analysts viewed the update as a positive sign of strategic and financial progress.

The company also confirmed that it remains focused on streamlining operations, reducing costs, and reshaping parts of its business model. In recent months, Capita announced plans to sell part of its private sector contact center operations following concerns about profit margins.

The business update comes shortly after investment firm Oasis Management increased its position in Capita and became the company’s largest shareholder. Market observers believe the move could influence future strategic decisions within the group.

Capita also maintained its financial expectations for its pension solutions division and confirmed that its cost-saving targets for 2026 and 2027 remain unchanged.

Following the announcement, shares in the London-listed company rose in early trading, reflecting renewed investor confidence in the company’s recovery plans and long-term strategy.

Capita remains one of the largest outsourcing and professional services providers in the United Kingdom, working with government institutions, businesses, and public organizations across multiple sectors.