Cgi Stock Earnings Reports

CGI reported Q1 FY2026 revenue of CAD 4.1 billion, up 7.7% year-over-year (3.4% ex-FX), driven by acquisitions and growth in APAC delivery. Bookings were CAD 4.5 billion (book-to-bill 110%), with managed services leading demand; contracted backlog reached CAD 31.3 billion (1.9x revenue). Adjusted EBIT was CAD 655 million (16.1% margin); adjusted net earnings were CAD 461 million and adjusted diluted EPS was CAD 2.12 (+8% YoY). Cash from operations was strong at CAD 872 million (21.4% of revenue). Capital deployment in the quarter included CAD 87 million invested back into the business (including AI), CAD 106 million in acquisitions, CAD 577 million on share buybacks, and CAD 37 million in dividends. The Board renewed the NCIB through Feb 2027 and approved a quarterly dividend of USD 0.17 per share. CGI closed two mergers (Comarch division in Europe and Online Business Systems in Canada) and completed the BJSS and Apside integrations earlier; these contributed to strong regional growth (U.K./Australia +31% with BJSS; Western & Southern Europe +9% led by Apside). The U.S. Federal business was negatively affected by the recent government shutdown (lower utilization), but management expects sequential improvement; excluding U.S. Federal the combined book-to-bill was 118%. Company-wide progress on the AI strategy was emphasized: ~40% of consultants now have advanced AI/data expertise, rollout of AI-enabled SDLC and internal AI exchange, new alliances with Google Cloud and OpenAI, and several client AI deployments. Management reiterated capital allocation priorities (invest, buy accretive assets, buybacks/dividends), balance sheet strength (CAD 2.4 billion available, net leverage ~1x), a tax rate guide of 26–27%, and an expectation of gradual sequential improvement through the year (caveat: further U.S. shutdowns could be disruptive).