Cautious Outlook on CGI Due to Organic Growth Challenges and Margin PressuresWe are downgrading CGI to Hold from Buy. Organic growth has been lagging peers due to the company's greater exposure to underperforming regions and verticals. With industry trends unlikely to improve much next year, we see no relief. For 2026, we are below consensus at -2% y/y organic cc revenue growth, with adj EPS +9% y/y due to M&A. CGI's depressed 13.3x P/E multiple on 2026E is attractive, but still above the 12.5x peer average, which warrants caution. Organic growth falling behind peers. the company's revenues exposed to challenged geographies (i.e., France, Germany, US Federal, Canada), organic growth likely remains negative in F2026. This past quarter CGI reported organic cc growth of -3% y/y, down from -1% y/y last quarter.