CGI (GIB.A) AI Stock Analysis

• Market Cap: C$27.58B
• Dividend Yield: 0.48%
• Average Volume (3M): 482.20K
• Price to Earnings (P/E): 17.3
• Beta (1Y): 0.56
• Revenue Growth: 8.43%
• EPS Growth: 0.25%
• Country: CA
• Employees: 94,000
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 2.13
• Shares Outstanding: 192,172,010
• 10 Day Avg. Volume: 449,314
• 30 Day Avg. Volume: 482,204
• PEG Ratio: 41.71
• Price to Book (P/B): 2.72
• Price to Sales (P/S): 1.76
• P/FCF Ratio: 13.21
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$179.63
• Price Target Upside: 40.64% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): 8.97
• Revenue Forecast (FY): C$16.72B

• Rating: 79 Outperform
• Price Target: C$147.00 ▲(15.10% Upside)

CGI's strong financial performance and positive earnings call sentiment are the primary drivers of its high score. The company's strategic acquisitions and focus on AI integration are promising for future growth. While technical indicators suggest a bullish trend, caution is advised due to potential overbought conditions. Valuation metrics indicate a fair market price, with limited dividend yield.

Positive Factors

Revenue Growth

Strong revenue growth indicates effective market strategies and increased demand for CGI's services, supporting long-term expansion.

Robust Bookings and Backlog

High bookings and backlog ensure future revenue streams, reflecting strong client demand and operational efficiency.

AI Strategy and Development

AI integration enhances service offerings and operational efficiency, positioning CGI for competitive advantage and future growth.

Negative Factors

Federal Shutdown Impact

The shutdown poses risks to revenue and margins, highlighting vulnerability to external political factors affecting U.S. operations.

Increased DSO

Higher DSO indicates slower cash collection, potentially straining working capital and affecting liquidity management.

Restructuring and Acquisition Costs

Significant restructuring costs can pressure net earnings, impacting short-term financial performance and requiring careful cost management.

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 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.

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 steady income stream. Key revenue streams include systems integration projects, application management services, and outsourcing services. Additionally, CGI benefits from strategic partnerships with technology leaders that enhance its service offerings and market reach. The company also has a significant presence in the public sector, which provides a consistent source of revenue through government contracts. Overall, CGI's revenue model is supported by its diversified client base and the growing demand for digital transformation services across industries.

CGI Financial Statement Overview

Summary

CGI exhibits a strong financial position with consistent revenue growth and solid profitability metrics. The balance sheet reflects prudent financial management with moderate leverage. Cash flows are robust, supporting ongoing operations and potential investments. While there are minor areas for improvement, such as enhancing gross margins and equity ratios, the overall financial health is commendable.

Income Statement

CGI has demonstrated consistent revenue growth, with a TTM growth rate of 2.27%. The company maintains strong profitability with a net profit margin of 11.01% and an EBIT margin of 16.39%. However, there is a slight decline in gross profit margin over the years, indicating potential cost pressures.

Balance Sheet

The balance sheet is robust, with a manageable debt-to-equity ratio of 0.43, indicating prudent financial leverage. The return on equity is solid at 17.27%, reflecting efficient use of equity. However, the equity ratio is moderate, suggesting room for strengthening the equity base.

Cash Flow

Cash flow generation is strong, with a free cash flow growth rate of 1.50% TTM. The operating cash flow to net income ratio is healthy at 0.53, indicating good cash conversion. The free cash flow to net income ratio of 0.89 suggests efficient cash management, though slightly lower than previous years.

Breakdown	TTM	Dec 2025	Dec 2025	Dec 2024	Dec 2023	Dec 2022
Income Statement
Total Revenue	15.91B	15.91B	15.91B	14.68B	14.30B	12.87B
Gross Profit	3.29B	3.29B	3.29B	3.01B	2.88B	2.60B
EBITDA	2.97B	2.52B	2.52B	2.61B	2.51B	2.28B
Net Income	1.66B	1.66B	1.66B	1.69B	1.63B	1.47B
Balance Sheet
Total Assets	19.52B	19.52B	19.52B	16.69B	15.80B	15.18B
Cash, Cash Equivalents and Short-Term Investments	867.88M	867.88M	867.88M	1.46B	1.58B	972.64M
Total Debt	4.47B	4.47B	4.47B	3.32B	3.74B	3.98B
Total Liabilities	9.24B	9.24B	9.24B	7.26B	7.49B	7.90B
Stockholders Equity	10.28B	10.28B	10.28B	9.43B	8.31B	7.27B
Cash Flow
Free Cash Flow	2.00B	2.12B	2.12B	2.10B	1.81B	1.57B
Operating Cash Flow	2.23B	2.23B	2.23B	2.20B	2.11B	1.86B
Investing Cash Flow	-2.20B	-2.20B	-2.20B	-775.38M	-561.86M	-911.95M
Financing Cash Flow	-246.66M	-246.66M	-246.66M	-1.61B	-1.19B	-1.59B

CGI Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 127.72
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:GIB.A, the sentiment is Negative. The current price of 127.72 is below the 20-day moving average (MA) of 128.38, above the 50-day MA of 125.49, and below the 200-day MA of 133.90, indicating a neutral trend. The MACD of 1.14 indicates Positive momentum. The RSI at 49.95 is Neutral, neither overbought nor oversold. The STOCH value of 63.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:GIB.A.

CGI Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GIB.A	79 Outperform	C$27.58B	17.30	16.50%	0.48%	8.43%	0.25%
PVT	64 Neutral	C$47.38M	13.58	7.17%	―	-13.43%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ALYA	46 Neutral	C$165.58M	-6.13	-16.17%	―	3.40%	-691.81%

CGI Corporate Events

CGI Reports Strong Q4 Revenue Growth and Dividend Increase

CGI reported a 9.7% year-over-year increase in fourth-quarter revenue for Fiscal 2025, reaching $4.01 billion. Despite a decline in earnings before income taxes by 12.9%, the company saw a significant boost in adjusted earnings and cash generation, driven by its AI-embedded services and strategic initiatives. The company announced a 13% increase in its dividend, reflecting confidence in its financial health and future growth prospects. CGI’s strong performance and strategic focus on AI and emerging technologies position it well for continued expansion, with a 30% increase in new business opportunities.

The most recent analyst rating on ($TSE:GIB.A) stock is a Buy with a C$160.00 price target. To see the full list of analyst forecasts on CGI stock, see the TSE:GIB.A Stock Forecast page.