CGI (TSE:GIB.A)
TSX:GIB.A
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CGI
(TSX:GIB.A)
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Rating:70Outperform
Price Target:
C$110.00
▲(10.30% Upside)
Action:ReiteratedDate:02/28/26
The score is driven primarily by strong financial quality (profitability and free cash flow) and a reasonable valuation (P/E ~13.2). These positives are meaningfully offset by weak technicals, with the stock in a clear downtrend below major moving averages and negative momentum readings.
Positive Factors
Strong free cash flow generation
Sustained FCF near $2.26B and ~89% conversion of net income provide durable internal funding for capex, M&A and debt paydown. High FCF supports reinvestment in platforms and client delivery centers, enhancing long-term competitiveness and financial optionality.
Negative Factors
Rising leverage trend
Debt-to-equity rising from ~0.35 to ~0.43 signals a move toward higher financial leverage. While still moderate, the trend reduces flexibility for large strategic investments and raises interest/service obligations, making the company more sensitive to macro or sector stress.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow generation
Sustained FCF near $2.26B and ~89% conversion of net income provide durable internal funding for capex, M&A and debt paydown. High FCF supports reinvestment in platforms and client delivery centers, enhancing long-term competitiveness and financial optionality.
Read all positive factors
CGI (GIB.A) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$21.19B
Dividend Yield0.48%
Average Volume (3M)566.77K
Price to Earnings (P/E)15.5
Beta (1Y)0.40
Revenue Growth8.43%
EPS Growth0.25%
CountryCA
Employees94,000
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)2.12
Shares Outstanding190,635,130
10 Day Avg. Volume857,925
30 Day Avg. Volume566,774
Financial Highlights & Ratios
PEG Ratio41.71
Price to Book (P/B)2.72
Price to Sales (P/S)1.76
P/FCF Ratio13.21
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$149.88Price Target Upside50.28% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)8.97
Revenue Forecast (FY)C$16.71B
CGI Business Overview & Revenue Model
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 Un...
How the Company Makes Money
CGI generates revenue primarily through its consulting and IT services, which include project-based and recurring revenue models. The company earns money by providing tailored solutions to clients, often through multi-year contracts that ensure a ...
CGI Earnings Call Summary
Earnings Call Date:Nov 05, 2025
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 29, 2026
Earnings Call Sentiment Neutral
CGI reported strong revenue growth and robust bookings, driven by strategic acquisitions and demand for managed services. However, challenges such as the impact of the U.S. federal shutdown, increased DSO, and significant restructuring costs were noted.Positive Updates
Strong Revenue Growth
CGI delivered $4 billion of revenue in Q4, up 9.7% year-over-year, or 5.5% when excluding the impact of foreign exchange.
Negative Updates
Federal Shutdown Impact
The U.S. federal government shutdown is expected to impact CGI's next quarter revenue by $60 million to $75 million and margin by $15 million to $22 million.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Revenue Growth
CGI delivered $4 billion of revenue in Q4, up 9.7% year-over-year, or 5.5% when excluding the impact of foreign exchange.
Read all positive updates
Company Guidance
During the fourth quarter of fiscal 2025, CGI reported strong financial performance with a revenue of $4 billion, reflecting a 9.7% year-over-year increase, or 5.5% excluding foreign exchange impacts. Growth was significantly driven by the acquisition of BJSS, which boosted the U.K. operations by 28%, and continued demand for APAC delivery centers, which grew by 6.4%. The U.S. segments saw a combined growth of 5.7%, mainly due to mergers with Aeyon and Daugherty. The bookings for the quarter reached nearly $4.8 billion, leading to a book-to-bill ratio of 119%, with notable contributions from the U.S. Federal segment at 185%. The company's contracted backlog stood at $31.5 billion, approximately twice the revenue. CGI's adjusted EBIT was $667 million, marking an 11.2% year-over-year increase and yielding a margin of 16.6%. Adjusted net earnings rose to $472 million, resulting in a diluted EPS of $2.13, up by 11%. The company also generated $663 million from operations, representing 16.5% of total revenue, and allocated significant capital across various areas, including $81 million in business investments and $491 million in stock buybacks.CGI Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
78
Positive
Cash Flow
82
Very Positive
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 16.21B | 15.91B | 14.68B | 14.30B | 12.87B | 12.13B |
| Gross Profit | 3.33B | 3.29B | 3.01B | 2.88B | 2.60B | 2.50B |
| EBITDA | 3.01B | 2.52B | 2.61B | 2.51B | 2.28B | 2.14B |
| Net Income | 1.66B | 1.66B | 1.69B | 1.63B | 1.47B | 1.37B |
Balance Sheet | ||||||
| Total Assets | 18.91B | 19.52B | 16.69B | 15.80B | 15.18B | 15.02B |
| Cash, Cash Equivalents and Short-Term Investments | 841.10M | 867.88M | 1.46B | 1.58B | 972.64M | 1.70B |
| Total Debt | 4.81B | 4.47B | 3.32B | 3.74B | 3.98B | 4.22B |
| Total Liabilities | 8.97B | 9.24B | 7.26B | 7.49B | 7.90B | 8.03B |
| Stockholders Equity | 9.95B | 10.28B | 9.43B | 8.31B | 7.27B | 6.99B |
Cash Flow | ||||||
| Free Cash Flow | 2.26B | 2.12B | 2.10B | 1.81B | 1.57B | 1.88B |
| Operating Cash Flow | 2.46B | 2.23B | 2.20B | 2.11B | 1.86B | 2.12B |
| Investing Cash Flow | -2.29B | -2.20B | -775.38M | -561.86M | -911.95M | -397.55M |
| Financing Cash Flow | -1.31B | -246.66M | -1.61B | -1.19B | -1.59B | -1.65B |
CGI Technical Analysis
Neutral
99.73
Price Trends
109.34
Negative
116.78
Negative
125.19
Negative
Market Momentum
-2.52
Negative
41.36
Neutral
29.48
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:GIB.A, the sentiment is Neutral. The current price of 99.73 is above the 20-day moving average (MA) of 99.49, below the 50-day MA of 109.34, and below the 200-day MA of 125.19, indicating a neutral trend. The MACD of -2.52 indicates Negative momentum. The RSI at 41.36 is Neutral, neither overbought nor oversold. The STOCH value of 29.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:GIB.A.
CGI Peers Comparison
UnderperformOutperform
Sector (61)
TSE:GIB.A
CGI
101.50
-41.09
-28.82%
TSE:ALYA
Alithya Group
1.34
-0.56
-29.47%
TSE:PVT
Pivotree
1.75
0.75
75.00%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.