Download PDF

1. Company Snapshot

1.a. Company Description

CGI Inc., together with its subsidiaries, provides information technology (IT) and business process services in Canada; Western, Southern, Central, and Eastern Europe; Australia; Scandinavia; Finland, Poland, and Baltics; the United States; the United Kingdom; and the Asia Pacific.Its services include the management of IT and business outsourcing, systems integration and consulting, and software solutions selling activities.The company also offers application development, integration and maintenance, testing, portfolio management, and modernization services; business consulting; and a suite of business process services designed to address the needs of specific industries, as well as IT infrastructure services.


It serves clients operating in government, banking and capital market, health, utility, communication and media, oil and gas, retail, consumer and services, space, manufacturing, insurance, life sciences, retail and consumer service, and transportation and logistics sectors.The company was formerly known as CGI Group Inc.and changed its name to CGI Inc.


in January 2019.CGI Inc.was founded in 1976 and is headquartered in Montreal, Canada.

Show Full description

1.b. Last Insights on GIB

CGI Inc.'s recent performance was negatively impacted by its Q1 Fiscal 2026 earnings miss, with diluted EPS of $2.03, up 5.7% year-over-year, but below expectations. The company's revenue growth slowed to 7.7% year-over-year, or 3.4% in constant currency. Additionally, CGI Group (GIB) lagged Q1 earnings and revenue estimates, with quarterly earnings of $1.51 per share, missing the Zacks Consensus Estimate of $1.55 per share. According to Marketbeat Ratings, the stock has a consensus rating of "Moderate Buy" from eight ratings firms.

1.c. Company Highlights

2. CGI's Q1 FY2026 Earnings: A Strong Start to the Year

CGI reported revenue of $4.1 billion, up 7.7% year-over-year, with a book-to-bill ratio of 110% and bookings reaching $4.5 billion. Adjusted EBIT was $655 million, up 7.1% year-over-year, resulting in a margin of 16.1%. Net earnings were $442 million, with an EPS of $1.51, slightly below estimates of $1.55. The company's cash generation was strong, with $872 million in cash from operations, representing 21.4% of total revenue.

Publication Date: Feb -09

📋 Highlights
  • Revenue Growth:: Q1 FY2026 revenue reached $4.1 billion (+7.7% YoY), driven by acquisitions (BJSS, Apside) and APAC expansion, with UK/Australia and Western/Southern Europe segments growing 31% and 9%, respectively.
  • Bookings Momentum:: $4.5 billion in bookings (110% book-to-bill ratio), led by U.S. government at 169%, and a $31.3 billion contracted backlog (1.9x revenue).
  • Profitability & Cash Flow:: Adjusted EBIT of $655 million (16.1% margin) and $872 million in operating cash flow (21.4% of revenue), reflecting strong collections and disciplined operations.
  • AI Strategy Progress:: 40% of consultants trained in advanced AI/data, with AI-enabled tools improving delivery speed and quality; AI Exchange platform launched to scale global AI adoption.
  • Acquisition & Pipeline Growth:: SI&C pipeline up 40% YoY, managed services bookings increased (40% new business), and $2.4 billion in capital resources supporting transformational acquisitions and share buybacks.

Segment Performance

The U.K. and Australia segment reported a 31% growth, mainly due to the acquisition of BJSS, while the Western and Southern Europe segment experienced a 9% growth, led by the acquisition of Apside. The company's contracted backlog reached $31.3 billion or 1.9x revenue, providing a solid foundation for future growth.

AI Strategy and Adoption

CGI is making significant progress in its AI strategy, with the rollout of its AI-enabled software delivery life cycle, which has improved engineering speed and quality. The company has also launched its AI exchange platform, designed to help scale and industrialize AI delivery globally. Approximately 40% of its consultants have expertise in advanced AI and data, positioning the company well for future growth.

Valuation and Outlook

With a P/E Ratio of 14.67 and an EV/EBITDA of 9.6, CGI's valuation appears reasonable. Analysts estimate next year's revenue growth at 3.0%. The company's ROIC of 16.26% and ROE of 16.37% indicate strong profitability. CGI's net debt leverage ratio is 1, and its capital resources stood at $2.4 billion, providing a solid foundation for future investments and dividend payments.

Management Insights

According to François Boulanger, "CGI is providing consulting services to help clients achieve outcomes from AI adoption, particularly in industries like finance and manufacturing." This highlights the company's ability to capitalize on the growing trend of AI adoption and its focus on delivering value to its clients.

3. NewsRoom

Card image cap

CGI and Schneider Electric deliver end-to-end solutions for energy providers

Feb -19

Source: prnewswire.com

Card image cap

CGI positioned as Leader in 2026 Gartner® Magic Quadrant™ for Banking Payment Hub Platforms

Feb -11

Source: prnewswire.com

Card image cap

CGI expands presence in Atlanta with Stratfield Consulting

Feb -04

Source: prnewswire.com

Card image cap

Mediolanum International Funds Ltd Has $5.97 Million Position in CGI Group, Inc. $GIB

Feb -03

Source: defenseworld.net

Card image cap

CGI Group AGM: Directors Win 98% Support, Proposals Rejected as Q1 Revenue Rises 7.7%

Feb -02

Source: defenseworld.net

Card image cap

CGI Group Q1 Earnings Call Highlights

Jan -30

Source: defenseworld.net

Card image cap

CGI reports director election results

Jan -29

Source: prnewswire.com

Card image cap

CGI Inc. (GIB.A:CA) Q1 2026 Earnings Call Transcript

Jan -29

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.96%)

6. Segments

Managed Information Technology and Process Services

Expected Growth: 3.5%

CGI Inc.'s Managed Information Technology and Process Services segment growth of 3.5% is driven by increasing demand for digital transformation, cloud adoption, and cybersecurity services. Additionally, the need for operational efficiency, cost reduction, and IT modernization in various industries such as healthcare, finance, and government contribute to the segment's growth.

Business and Strategic Information Technology Consulting and Systems Integration

Expected Growth: 4.5%

CGI Inc.'s 4.5% growth in Business and Strategic Information Technology Consulting and Systems Integration is driven by increasing demand for digital transformation, cloud adoption, and cybersecurity services. Additionally, strategic acquisitions, expansion into new markets, and a strong reputation for delivering complex IT projects contribute to the segment's growth.

7. Detailed Products

IT Consulting Services

CGI provides IT consulting services to help clients assess, plan, and implement technology solutions that meet their business needs.

Application Services

CGI provides application services to design, develop, test, and maintain custom applications that meet clients' specific business needs.

Infrastructure Services

CGI provides infrastructure services to design, implement, and manage clients' IT infrastructure, including data centers, networks, and cloud services.

Business Process Services

CGI provides business process services to help clients optimize and automate their business processes, improving efficiency and reducing costs.

Cybersecurity Services

CGI provides cybersecurity services to help clients protect their IT systems and data from cyber threats.

Digital Transformation Services

CGI provides digital transformation services to help clients develop and implement digital strategies that drive business growth and innovation.

8. CGI Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

CGI Inc. operates in a highly competitive industry, and there are many substitutes available to customers. However, the company's strong brand reputation and customer loyalty mitigate the threat of substitutes to some extent.

Bargaining Power Of Customers

CGI Inc. has a large customer base, but the customers have significant bargaining power due to the availability of substitutes and the company's dependence on a few large clients.

Bargaining Power Of Suppliers

CGI Inc. has a diverse supplier base, and the suppliers have limited bargaining power due to the company's large scale of operations and its ability to negotiate favorable terms.

Threat Of New Entrants

The threat of new entrants in the industry is moderate, as there are significant barriers to entry, including high capital requirements and the need for specialized skills and expertise.

Intensity Of Rivalry

The industry in which CGI Inc. operates is highly competitive, with many players competing for market share. The company's strong brand reputation and customer loyalty help to mitigate the intensity of rivalry to some extent.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 31.05%
Debt Cost 3.95%
Equity Weight 68.95%
Equity Cost 8.02%
WACC 6.75%
Leverage 45.03%

11. Quality Control: CGI Inc. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Leidos

A-Score: 6.0/10

Value: 4.6

Growth: 6.6

Quality: 5.9

Yield: 2.0

Momentum: 8.0

Volatility: 9.0

1-Year Total Return ->

View Full Report
Stock-Card
Genpact

A-Score: 5.7/10

Value: 5.4

Growth: 6.2

Quality: 6.9

Yield: 3.0

Momentum: 5.0

Volatility: 7.3

1-Year Total Return ->

View Full Report
Stock-Card
Jack Henry

A-Score: 5.5/10

Value: 2.5

Growth: 5.7

Quality: 8.4

Yield: 2.0

Momentum: 5.0

Volatility: 9.7

1-Year Total Return ->

View Full Report
Stock-Card
CACI

A-Score: 5.3/10

Value: 3.8

Growth: 6.2

Quality: 5.2

Yield: 0.0

Momentum: 9.0

Volatility: 7.7

1-Year Total Return ->

View Full Report
Stock-Card
CGI

A-Score: 5.0/10

Value: 5.4

Growth: 5.9

Quality: 6.8

Yield: 0.0

Momentum: 2.0

Volatility: 9.7

1-Year Total Return ->

View Full Report
Stock-Card
ASGN

A-Score: 4.1/10

Value: 7.7

Growth: 6.2

Quality: 5.2

Yield: 0.0

Momentum: 0.0

Volatility: 5.7

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

74.32$

Current Price

74.32$

Potential

-0.00%

Expected Cash-Flows