Stock Market Symbols GIB.A (TSX) GIB (NYSE) cgi.com/newsroom MONTRÉAL, Aug. 5, 2024 /PRNewswire/ - CGI (TSX: GIB.A) (NYSE: GIB), one of the world's largest business and IT consulting firms, has been named a Major Player in the IDC MarketScape: Worldwide Cloud Professional Services 2024 Vendor Assessment*. CGI's key strengths in cloud are in its ability to partner with clients to co-create, deliver and manage innovative cloud-based digital business solutions at pace and scale. "CGI has tightly bound its clou ...

Luis Alvarez Please note all $ figures in $CAD, not $USD, unless otherwise noted. Introduction CGI Inc. (NYSE:GIB) (TSX:TSX:GIB.A:CA) is an IT consulting company with worldwide operations, employing close to 100,000 consultants globally. With global operations across various sectors including banking, communications, life sciences, manufacturing, energy, retail, and transportation, CGI is a well-diversified IT company that's demonstrated a track record of profitable and steady growth. The company has annual ...

Third Quarter Fiscal 2024 Financial results and highlights For the three months ended June 30, 2024 and 2023 July 31, 2024 Forward-Looking Information and Statements Our presentations contain "forward-looking information "within the meaning of Canadian securities laws and "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and other applicable United States safe harbours. All such forward-looking information and statements are made and disclo ...

Financial Data and Key Metrics - Revenue for Q3 2024 was $3.7 billion, up 1.3% YoY or 0.2% excluding foreign exchange impact [3] - Earnings before income taxes were $594 million, with a margin of 16.2%, up 80 basis points YoY [6] - Adjusted EBIT was $603 million, representing a margin of 16.4%, up 30 basis points YoY [6] - Net earnings were $440 million, with a margin of 12%, up 50 basis points YoY [7] - Diluted EPS was $1.91, an increase of 9% YoY [7] - Cash provided by operating activities was $497 million, representing 13.5% of total revenue [7] - Global backlog reached $27.6 billion, or 1.9 times revenue [5] Business Line Performance - Strongest segments were Northwest and Central East Europe with 10% constant currency growth, Asia Pacific at 5.4%, Finland, Poland, and Baltics at 3.2%, and US commercial and state government at 2% [3] - IP grew at 5.2% constant currency, representing 22.5% of total revenue, up 120 basis points YoY [5] - Bookings were strong at $4.3 billion, with a book-to-bill ratio of 117% [5] - Managed services and IP engagements drove bookings, with managed services book-to-bill at 139% and IP book-to-bill at 129% [12] Market Performance - Government sector showed the highest growth at 4.1% constant currency, followed by manufacturing, retail, and distribution at 2.2% [4] - US federal bookings were particularly strong with a book-to-bill ratio of 209%, followed by UK and Australia at 153%, and Western and Southern Europe at 123% [5] - Asia Pacific, Canada, and US Federal segments showed strong margins at 31%, 22%, and 17% respectively [7] Strategic Direction and Industry Competition - The company is focusing on managed services and IP engagements to drive growth, with a strong emphasis on government sector contracts [12][13] - CGI is investing in AI and generative AI technologies, with a 20% sequential increase in AI-related projects [22] - The company is pursuing accretive acquisitions, such as the recent purchase of Aeyon, which expands its US federal capabilities [24][68] Management Commentary on Business Environment and Outlook - Management noted signs of stabilization in the macro business environment, with clients beginning to solidify future plans [17] - The company expects continued delays in decision-making for stand-alone SI&C projects but remains optimistic about the demand for managed services and IP solutions [18] - CGI is enhancing its managed services delivery approach through the expansion of its CGI DigiOps platform, which leverages AI technologies [21] Other Important Information - CGI announced a dividend program, with a quarterly cash dividend of $0.15 per share starting in Q1 2025 [9] - The company completed two strategic acquisitions, adding 875 consultants and professionals to its workforce [8] - CGI's effective tax rate for the quarter was 25.9%, with future quarters expected to be in the range of 25% to 26.5% [7] Q&A Session Summary Question: Why initiate a dividend now? - The dividend was initiated as an additional mechanism to return value to shareholders while maintaining financial flexibility for investments and acquisitions [27] Question: What is the M&A environment like? - The M&A environment is active, with reasonable valuations and increased inbound calls, particularly from smaller companies [29] Question: How is the demand environment shaping up? - The demand environment is showing signs of stabilization, with managed services offsetting softness in SI&C projects [32] Question: What does the Aeyon acquisition bring? - Aeyon brings new avenues in the national security space and complementary government-wide contract vehicles, enhancing CGI's US federal capabilities [33][34] Question: What drives margin expansion? - Margin expansion is driven by the mix of managed services and IP, leveraging global delivery and cost optimization programs [35] Question: How is AI integrated into CGI's strategy? - AI is increasingly integrated into CGI's engagements, with a focus on proprietary solutions like CGI Pulse AI and partnerships with hyperscalers [38][39] Question: What is the outlook for consulting? - Consulting remains important, particularly in AI-related data and business transformation, though recovery will be slower [48] Question: How is pricing pressure affecting the market? - Pricing pressure is more about outcomes and efficiencies rather than unit price, with clients seeking quality and operational improvements [60][61] Question: What are the geographic growth variances? - Europe is performing better than North America, with smaller geographies like Finland and Poland showing more agility and growth [65][66] Question: What is the focus of M&A? - M&A focuses on building out metro markets across verticals, with an emphasis on new client relationships and capabilities [68]

CGI Group (GIB) came out with quarterly earnings of $1.40 per share, in line with the Zacks Consensus Estimate. This compares to earnings of $1.34 per share a year ago. These figures are adjusted for non-recurring items. A quarter ago, it was expected that this information technology and business process services company would post earnings of $1.44 per share when it actually produced earnings of $1.46, delivering a surprise of 1.39%. Over the last four quarters, the company has surpassed consensus EPS esti ...

Updates use of cash strategy to include dividend program Note: All figures in Canadian dollars. Q3-F2024 MD&A, interim condensed consolidated financial statements and accompanying notes can be found at cgi.com/investors and have been filed with the Canadian Securities Administrators on SEDAR+ at www.sedarplus.ca and the U.S. Securities and Exchange Commission on EDGAR at www.sec.gov. "CGI's Q3 results reflect the disciplined execution of our plan in this dynamic macro business environment to deliver shareho ...

In the U.S., CGI has consultants and professionals located in 80 offices organized through a metro market proximity model and supported by the depth of the company's global presence, end-to-end range of services and solutions, and insights to deliver value locally. "We look forward to welcoming the 725 Aeyon employees whose deep experience and expertise in government transformation has meaningfully contributed to the missions of U.S. Federal Government organizations," said Stephanie Mango, President, CGI Fe ...

FAIRFAX, Va., July 25, 2024 /PRNewswire/ - CGI Federal Inc. (CGI), the wholly-owned U.S. operating subsidiary of CGI Inc. (TSX: GIB.A) (NYSE: GIB), has been selected to provide modern technology solutions to the Environmental Protection Agency's (EPA) Office of Research and Development (ORD). Under the Scientific Modeling, Application, Visualization, Computational Science, Software, and Statistical Support (SMAVCS4) blanket purchase agreement (BPA) and a new task order, CGI will continue to provide moderniz ...

Stock Market Symbols GIB.A (TSX) GIB (NYSE) cgi.com/newsroom MONTRÉAL, July 24, 2024 /PRNewswire/ - CGI (TSX: GIB.A) (NYSE: GIB) will release results for its third quarter fiscal year 2024, ended June 30, 2024, on Wednesday, July 31, 2024 before the markets open. Management will host a conference call to discuss results and answer questions at 9:00 a.m. (EDT). SOURCE CGI Inc. | --- | --- | |------------------|--------------------------------------------------------------------------------------------------- ...

MONTRÉAL, July 23, 2024 /PRNewswire/ - CGI (TSX: GIB.A) (NYSE: GIB), one of the world's largest business and IT consulting firms, has been positioned as a Major Player by the IDC MarketScape: Worldwide Business Consulting Services 2024 Vendor Assessment*. CGI's business consulting experience is based on its ability to deliver the insights, capabilities, and advisory services clients require to balance short-term and longterm imperatives to drive outcomes aligned to their business strategies. The report note ...