CGI positioned as Leader in 2026 Gartner® Magic Quadrant™ for Banking Payment Hub Platforms [Accessibility Statement] Skip NavigationStock Market Symbols GIB.A (TSX) GIB (NYSE) [cgi.com/newsroom]MONTRÉAL, Feb. 11, 2026 /PRNewswire/ - CGI Inc. (NYSE: GIB) (TSX: GIB.A), one of the largest independent IT and business consulting services firms in the world, today announced its positioning as a Leader in the 2026 Gartner Magic Quadrant for Banking Payment Hub Platforms*.The report evaluated vendors based on thei ...

Group 1 - CGI Inc. is considered one of the most undervalued Canadian stocks by hedge funds, with Canaccord lowering its price target to C$150 from C$155 while maintaining a Buy rating [1] - TD Securities has transferred coverage of CGI to analyst David Kwan, who maintains a Buy rating with a price target of C$145, highlighting CGI's potential for organic growth and margin improvements [2] - Scotiabank analyst Kevin Krishnaratne has initiated coverage of CGI with a Sector Perform rating and a price target of C$140, citing concerns over the company's exposure to discretionary IT spending and ongoing soft sales trends [4] Group 2 - CGI Inc. provides IT and business process services across various regions, including Western & Southern Europe, the US, Canada, and Asia Pacific [5]

Financial Performance - Suncor reported adjusted operating earnings of $1.33 billion, or $1.10 per share, a decrease from $1.57 billion, or $1.25 per share in the prior-year quarter [1] - ATS Corp. achieved a net income of $30.0 million, up from $6.5 million a year ago, with revenue increasing nearly 17% [4] - CGI Inc. reported a first-quarter profit of $442.0 million, slightly up from $438.6 million a year earlier, with revenue rising nearly 8% to $4.08 billion [8] - Thomson Reuters reported a fourth-quarter profit of $332 million, down from $587 million a year earlier, with revenue totaling $2.01 billion, up from $1.91 billion [11][13] - BCE Inc. reported a fourth-quarter profit attributable to common shareholders of $594 million, compared to $461 million a year earlier, with profit per share increasing from 51 cents to 64 cents [14] Adjusted Earnings - ATS reported adjusted earnings of 48 cents per share, up from 32 cents per share a year earlier [5] - CGI's adjusted earnings were $2.12 per diluted share, an increase from $1.97 per diluted share a year ago [8] - Thomson Reuters reported adjusted earnings of $1.07 per share, up from $1.01 per share a year earlier [13] Revenue Growth - Suncor's operating revenues were $12.04 billion, down from $12.53 billion [2] - ATS's revenue for the quarter totaled $760.7 million, up from $652.0 million [5] - CGI's revenue increased to $4.08 billion from $3.79 billion [8] - Thomson Reuters' revenue rose to $2.01 billion from $1.91 billion [13] Strategic Developments - CGI announced a collaboration deal with OpenAI to expand the use of artificial intelligence across its business [9]

Core Viewpoint - CGI has announced the acquisition of Stratfield Consulting, enhancing its presence in the Atlanta market, which is a significant growth area for the company [1][2]. Company Overview - CGI is one of the largest independent technology and professional services firms globally, founded in 1976, with a workforce of 94,000 consultants and professionals [3]. - The company reported a revenue of CA$15.91 billion for Fiscal 2025 [3]. Acquisition Details - The acquisition of Stratfield Consulting is expected to be completed in February 2026, pending customary closing conditions [1]. - Stratfield Consulting, established in 2012, specializes in digital engineering, product development, technology strategy, and change management, serving clients in retail and financial services [1][2]. - The acquisition will increase CGI's Atlanta workforce to nearly 600 consultants, enhancing local expertise and service delivery capabilities [2]. Strategic Intent - The acquisition aims to expand CGI's service offerings and create more opportunities for its employees while maintaining trusted client relationships and local presence [2][3]. - The partnership is expected to provide Stratfield Consulting's clients with access to CGI's broader capabilities and global network, enhancing service delivery [2].

Core Insights - CGI has appointed Gopal Chhetri as the leader of its Global Capability Centers (GCCs) business, focusing on an AI-first strategy to enhance delivery and transformation capabilities for clients [1][3][5] Group 1: Leadership and Strategy - Gopal Chhetri, with over 25 years of industry experience, will lead CGI's efforts to help clients transition from process efficiency to achieving measurable business outcomes [3][4] - The appointment emphasizes CGI's commitment to client proximity and the establishment, scaling, and transformation of GCCs, leveraging its global delivery model [4][6] Group 2: GCC Evolution - GCCs are evolving from mere execution centers to strategic engines for innovation, modernization, and resilience, aligning with clients' enterprise agendas [2][5] - CGI aims to help clients modernize platforms, utilize AI responsibly, and create lasting enterprise value through their GCCs [5][6] Group 3: Business Expansion - Gopal will focus on expanding CGI's GCC business, enhancing capabilities in digital engineering, cloud, AI, talent development, and market-ready delivery blueprints [6][7] - CGI reported a revenue of CA$15.91 billion for Fiscal 2025, indicating a strong financial position to support its strategic initiatives [7]

Company Overview - CGI Inc. is a significant player in the IT and business consulting services sector, founded in 1976, employing 94,000 consultants and professionals globally [1] - The company offers a wide range of services, including strategic IT and business consulting, systems integration, and managed IT services, operating through a local relationship model supported by a global delivery network [1] Stock Performance - As of the latest update, CGI's stock price is $86.47, reflecting a slight increase of 0.14% or $0.12, with a trading range between a low of $84.90 and a high of $87.57 for the day [3] - Over the past year, CGI's stock has reached a high of $122.79 and a low of $83.75, with a current market capitalization of approximately $19.06 billion [3] Analyst Ratings - On January 29, 2026, CIBC adjusted its rating for CGI to Neutral while maintaining a hold action, revising the price target from C$139 to C$132 [2] - This adjustment followed CGI's Annual General Meeting of Shareholders, where all 13 proposed directors were successfully elected [2] Trading Activity - CGI's trading volume for the day is 232,925 shares on the NYSE, indicating investor interest and activity in the stock [4] - Despite recent adjustments by CIBC, CGI remains a significant player in the IT and business consulting industry, leveraging its extensive workforce and global delivery network [4]

Group 1 - The Annual General Meeting of Shareholders for CGI is being conducted in both French and English, with simultaneous interpretation available [1] - Shareholders and duly appointed proxy holders have the opportunity to ask questions and vote during the meeting [1] - Only individuals listed in the shareholder register as of December 1, 2025, are entitled to vote at the meeting [2]

Core Insights - CGI Group reported strong first-quarter fiscal 2026 results, with increased revenue, a book-to-bill ratio above 1.0, and record operating cash flow despite challenges from a U.S. federal government shutdown and a one-time cost in India [1] Financial Results and Regional Performance - CGI achieved CAD 4.1 billion in revenue, reflecting a year-over-year increase of 7.7%, or 3.4% when excluding foreign exchange impacts, driven by acquisitions and demand from the APAC delivery center, which grew by 5.8% [2] - U.S. operations were impacted by a federal shutdown, but management anticipates sequential improvement in the next quarter, describing the U.S. federal segment as operating in a "very dynamic environment" [2] Bookings, Backlog, and Mix - Quarterly bookings reached CAD 4.5 billion, resulting in a book-to-bill ratio of 110%, with managed services leading at 117% and systems integration and consulting at 100% [3] - Excluding U.S. federal bookings, the combined book-to-bill ratio was 118% [3] Trailing 12-Month Performance - On a trailing 12-month basis, CGI's total book-to-bill ratio stood at 110%, with North America at 122% and Europe at 101%, while the contracted backlog reached CAD 31.3 billion, equating to 1.9 times revenue [4] Regional Growth Highlights - The UK and Australia experienced a growth of 31%, attributed to the transformative acquisition of BJSS [5] - Western and Southern Europe saw a growth of 9%, driven by the acquisition of Apside, which includes engineering services [5] - U.S. commercial and state government bookings were at 169%, while Finland, Poland, and the Baltics recorded 124%, and Scandinavia, Northwest, and Central East Europe achieved 113% [6] Overall Bookings Performance - Quarterly bookings increased by over CAD 300 million year over year, with just over half from new awards and add-ons, and a win rate on renewals exceeding 95% [7] - Total bookings on a trailing 12-month basis rose by 12% to nearly CAD 18 billion, with managed services bookings increasing by 16% [7]

Financial Data and Key Metrics Changes - For Q1 of fiscal 2026, the company reported revenue of CAD 4.1 billion, an increase of 7.7% year-over-year, or 3.4% when excluding foreign exchange impacts [29] - Adjusted EBIT for the quarter was CAD 655 million, up 7.1% year-over-year, with a margin of 16.1% of revenue [30] - Net earnings were CAD 442 million, with diluted EPS of CAD 2.03, representing a 5.7% increase year-over-year [30] - Cash provided by operating activities was CAD 872 million, representing 21.4% of revenue [30] Business Line Data and Key Metrics Changes - The company’s backlog remains strong at CAD 31.3 billion, or 1.9 times its revenue [29] - Bookings for the quarter were CAD 4.5 billion, resulting in a book-to-bill ratio of 110% [29] - The company invested CAD 87 million into its business, including AI investments, and CAD 106 million for business acquisitions [31] Market Data and Key Metrics Changes - The company noted that approximately 60% of its revenue comes from Europe, with varying GDP growth rates across countries impacting investment decisions [75] - The company has identified 1,000 potential targets for partnerships across 40 countries, indicating a robust pipeline for future growth [77] Company Strategy and Development Direction - The company’s strategy focuses on four key streams: systems integration and consulting, managed services, accretive acquisitions, and share buybacks/dividend programs [51] - The company aims to leverage its deep industry insights to support clients in their AI-enabled digital transformations [52] - The company emphasizes a proximity model to build trusted relationships with clients, ensuring a balanced revenue distribution across economic sectors [61][62] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company’s fundamentals despite stock price fluctuations, attributing challenges to broader economic conditions rather than company-specific issues [72][73] - The company anticipates continued improvement in some industries and geographies for the rest of the year, despite ongoing uncertainties [56] Other Important Information - The board of directors approved a quarterly cash dividend of CAD 0.17 per share, payable on March 20, 2026 [31] - The company has a strong commitment to its culture, with 88% of its consultants and professionals being shareholders, collectively holding over 8% of CGI shares [43] Q&A Session Summary Question: Why hasn't the stock price shown improvement? - Management indicated that stock price fluctuations are influenced by broader economic uncertainties rather than company fundamentals, which remain strong [72][73] - The company noted that in tougher economic conditions, clients tend to invest in managed services to optimize costs, which benefits CGI [75][76]

Financial Data and Key Metrics Changes - For Q1 of fiscal year 2026, the company reported revenue of CAD 4.1 billion, an increase of 7.7% year-over-year, or 3.4% when excluding foreign exchange impacts [27] - Adjusted EBIT for the quarter was CAD 655 million, up 7.1% year-over-year, with a margin of 16.1% of revenue [28] - Net earnings were CAD 442 million, with diluted EPS of CAD 2.03, representing a 5.7% increase year-over-year [28] - Cash provided by operating activities was CAD 872 million, representing 21.4% of revenue [28] Business Line Data and Key Metrics Changes - The company’s backlog remains strong at CAD 31.3 billion, which is 1.9 times the revenue [27] - Bookings for the quarter were CAD 4.5 billion, resulting in a book-to-bill ratio of 110% [27] Market Data and Key Metrics Changes - The company noted that approximately 60% of its revenue comes from Europe, with varying GDP growth rates across countries impacting investment decisions [72] - The company has identified 1,000 potential targets for partnerships across 40 countries, indicating a robust pipeline for future growth [75] Company Strategy and Development Direction - The company’s strategy focuses on four key streams: systems integration and consulting, managed services, accretive acquisitions, and share buybacks and dividends [48] - The company aims to leverage its deep industry insights to support clients in their AI-enabled digital journeys, bridging strategy and execution [49] - The company emphasizes a proximity model to build trusted relationships with clients, ensuring a balanced revenue distribution across economic sectors [58][59] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company’s fundamentals despite stock price fluctuations, attributing these to broader economic conditions rather than company-specific issues [69][71] - The company anticipates continued improvement in various industries and geographies, supported by its diversified revenue streams and strong cash generation capabilities [53] Other Important Information - The Board of Directors approved a quarterly cash dividend of CAD 0.17 per share, payable on March 20, 2026 [29] - The company completed five acquisitions in fiscal year 2025, all expected to be accretive within their first year [52] Q&A Session Summary Question: Why hasn't the stock price shown improvement? - Management indicated that stock price fluctuations are influenced by broader economic uncertainties rather than company fundamentals, which remain strong [69][71] - The company has historically performed well during economic downturns, with a significant portion of revenue coming from recurring sources [74][75]