Financial Performance - For the three months ended June 30, 2025, CGI reported a revenue growth of 8% compared to the same period in 2024, reaching CAD 3.2 billion[11]. - Revenue for Q3 2025 reached CAD 4,090.2 million, reflecting a year-over-year growth of 11.4%[50]. - For the nine months ended June 30, 2025, total revenue was $11,898.8 million, an increase of 8.0% compared to the same period last year[80]. - Adjusted net earnings for the quarter were CAD 250 million, with an adjusted net earnings margin of 7.8%[20]. - Net earnings for the three months ended June 30, 2025, were $408.6 million, a decrease of 7.2% compared to the same period last year[149]. - Adjusted net earnings for Q3 2025 were $470.1 million, up 6.8% from $440.2 million in Q3 2024, while adjusted earnings per share increased by 9.3% to $2.12[155]. Operational Efficiency - The adjusted EBIT margin for the nine months ended June 30, 2025, was 15%, reflecting a strong operational performance[16]. - Days sales outstanding (DSO) improved to 45 days, reflecting efficient collection processes[25]. - The adjusted EBIT margin for the three months ended June 30, 2025, decreased to 16.3% from 16.4%[127]. - Days sales outstanding (DSO) increased to 43 days in Q3 2025 from 42 days in Q3 2024, mainly due to lower cash collections relative to revenue growth[179]. Bookings and Backlog - Bookings for the quarter totaled CAD 1.5 billion, resulting in a book-to-bill ratio of 1.2, indicating robust demand for services[11]. - The backlog at the end of the quarter was CAD 7.5 billion, which includes both new bookings and backlog acquired through acquisitions[11]. - The backlog as of June 30, 2025, was CAD 30,580 million, with approximately CAD 11.7 billion expected to convert to revenue within the next twelve months[50]. - The company aims to maintain a target book-to-bill ratio greater than 100% over a trailing twelve-month period, demonstrating ongoing business development efforts[11]. Cash Flow and Financial Position - Cash provided by operating activities was CAD 450 million, representing 14% of total revenue, highlighting strong cash generation capabilities[24]. - Cash provided by operating activities for Q3 2025 was $486.6 million, representing 11.9% of revenue, down from 13.5% in Q3 2024[159]. - The company reported a net increase in cash and cash equivalents of $455.6 million for Q3 2025, compared to a net increase of $20.9 million in Q3 2024[158]. - Net debt stood at CAD 1.2 billion, indicating a healthy financial leverage position for the company[27]. - The net debt to capitalization ratio was 23.4% as of June 30, 2025, indicating a stable capital structure[50]. - The net debt to capitalization ratio increased to 23.4% in Q3 2025 from 17.2% in Q3 2024, primarily due to recent business acquisitions and share repurchases[177]. Strategic Initiatives - CGI is committed to achieving net-zero carbon emissions, aligning with its environmental, social, and governance (ESG) initiatives[8]. - The company aims to help clients achieve the highest returns on their digital investments through end-to-end services and solutions[38]. - The company is committed to a Build and Buy profitable growth strategy, focusing on investing in business and pursuing accretive acquisitions[185]. Market and Competitive Environment - The competitive environment has remained stable since the end of Fiscal 2024, indicating consistent market conditions[48]. - The company has reorganized its operating segments into nine categories, including Western and Southern Europe, U.S. Commercial and State Government, and Asia Pacific Global Delivery Centers of Excellence[30]. Revenue by Segment - Revenue from the U.S. federal government represented 13.6% of total revenue for the three months ended June 30, 2025, compared to 13.5% for the same period in 2024[74]. - Revenue in the U.S. Federal segment for the three months ended June 30, 2025, was $558.4 million, an increase of 11.9% year-over-year[87]. - Revenue in the U.S. Commercial and State Government segment for the three months ended June 30, 2025, was $645.3 million, an increase of 9.0% year-over-year[84]. - Revenue in the Canada segment for the three months ended June 30, 2025, was $526.6 million, an increase of 3.9% year-over-year[90]. - Revenue in the U.K. and Australia segment for the three months ended June 30, 2025, was $570.8 million, an increase of 46.3% year-over-year[79]. Acquisitions - The company acquired Daugherty Systems, Inc. for CAD 343.0 million and BJSS Ltd for CAD 1,255.6 million in recent acquisitions[62][63]. Taxation - The effective tax rate remained unchanged at 25.9% for the three months ended June 30, 2025[150]. - The company expects its adjusted effective tax rate to be in the range of 25.5% to 26.5% in subsequent periods based on current profitability mix[152]. Goodwill and Revenue Recognition - Goodwill is tested for impairment annually or when circumstances indicate potential impairment, with management reviewing various factors quarterly[200]. - The company has not recorded an impairment charge on goodwill historically, indicating stable financial performance[201]. - Revenue recognition is impacted by the allocation of total arrangement value to performance obligations based on relative stand-alone selling prices, which are reviewed annually[197].

Core Insights - CGI reported a revenue of CAD 4.09 billion for Q3-F2025, reflecting an 11.4% year-over-year growth, with a constant currency growth of 7.0% [3][12] - The company emphasized its focus on AI-related services, indicating strong momentum in this area [2][4] Financial Performance - Earnings before income taxes were CAD 551.6 million, down 7.1% year-over-year, with a margin of 13.5% compared to 16.2% in the previous year [4][6] - Adjusted earnings before interest and taxes increased by 10.5% year-over-year to CAD 666.1 million, with a margin of 16.3% [4][6] - Net earnings decreased by 7.2% to CAD 408.6 million, resulting in a margin of 10.0% [5][6] - Adjusted net earnings rose by 6.8% to CAD 470.1 million, with an adjusted diluted EPS of CAD 2.10, up 9.9% year-over-year [7][12] Operational Metrics - Cash provided by operating activities was CAD 486.6 million, representing 11.9% of revenue [7][12] - Bookings totaled CAD 4.15 billion, yielding a book-to-bill ratio of 101.4% [8][12] - The backlog reached CAD 30.58 billion, equivalent to 2.0 times the annual revenue [8][12] Capital Management - The company invested CAD 105.1 million back into its business and CAD 286.2 million for share repurchases [9][12] - A quarterly cash dividend of CAD 0.15 per share was approved, payable on September 19, 2025 [16] Debt and Financial Ratios - Long-term debt and lease liabilities increased to CAD 4.24 billion from CAD 3.05 billion year-over-year [10][12] - Net debt rose to CAD 3.12 billion, with a net debt-to-capitalization ratio of 23.4% [10][12]

Core Insights - CGI has launched CGI SpeedOps, a business operations transformation solution that integrates advanced technologies like AI with business expertise to enhance operational agility and deliver sustainable value across various sectors [1][2]. Group 1: Product Overview - CGI SpeedOps is designed to help clients achieve faster, smarter, and more adaptive outcomes by leveraging AI, cloud, automation, and data-driven insights [2]. - The solution is built on a scalable platform that connects people, processes, data, and systems, and is currently in production with clients in energy, utilities, and banking sectors [2][3]. - CGI SpeedOps is a key component of CGI's BPO 5.0 strategy, aimed at transforming business operations and enhancing agility, intelligence, and resilience for clients in a digital-first environment [3]. Group 2: Performance and Efficiency - When combined with CGI DigiOps, CGI SpeedOps can deliver efficiency improvements exceeding 40% [3][4]. - The integrated toolset of proprietary technologies within CGI SpeedOps modernizes and optimizes service delivery, unlocking new levels of operational value for clients [4]. Group 3: Company Background - Founded in 1976, CGI is one of the largest independent IT and business consulting services firms globally, with a workforce of 94,000 professionals [5]. - CGI reported a revenue of CA$14.68 billion for Fiscal 2024 and operates through a local relationship model supported by a global delivery network [5].

Group 1 - CGI Inc. is a Canadian IT consulting company with a global workforce of 94,000 consultants [1] - The company faces potential growth challenges due to its 13%+ revenue exposure to the U.S. federal sector [1]

Core Insights - CGI has secured a three-year, US$200-million contract extension with the State of California to provide managed services for the Case Management, Information and Payrolling System (CMIPS) supporting the In-Home Supportive Services (IHSS) program [1][2] Group 1: Contract Details - The contract extension will enable CGI to continue delivering end-to-end managed services for the IHSS program, which serves over 850,000 recipients and employs more than 760,000 caregivers [1][2] - The partnership has led to improvements in payroll and case management processes, reduced administrative overhead, and enhanced security [2][3] Group 2: Service Enhancements - CGI's services include comprehensive business process outsourcing (BPO) and IT services, focusing on efficiency, security, and accessibility of payroll processing for caregivers and beneficiaries [3] - The system processes over 1.5 million payroll payments monthly, totaling more than $19 billion annually, ensuring timely and accurate compensation for caregivers [3] Group 3: Future Focus - The renewal reflects CGI's role in modernizing California's IHSS care infrastructure, with a roadmap that includes cloud modernization, AI-powered insights, and agile responses to new legislation [4] - CGI aims to strengthen the program to provide efficient and reliable services to caregivers and those they support [4] Group 4: Company Overview - Founded in 1976, CGI is one of the largest independent IT and business consulting services firms globally, with 94,000 professionals [5] - CGI reported revenue of CA$14.68 billion for Fiscal 2024 and is listed on both the TSX and NYSE [5]

Core Viewpoint - The market anticipates CGI Group (GIB) to report a year-over-year increase in earnings driven by higher revenues for the quarter ended June 2025, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - The consensus estimate for CGI's quarterly earnings is $1.51 per share, reflecting a year-over-year increase of 7.9%, while revenues are projected to be $2.91 billion, up 8.6% from the previous year [3]. Estimate Revisions - Over the last 30 days, the consensus EPS estimate has been revised 0.1% higher, indicating a slight positive reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that the Most Accurate Estimate for CGI is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -0.24%, suggesting a bearish outlook from analysts [12]. Historical Performance - In the last reported quarter, CGI was expected to post earnings of $1.50 per share but delivered $1.48, resulting in a surprise of -1.33%. Over the last four quarters, the company has beaten consensus EPS estimates twice [13][14]. Investment Considerations - Despite the negative Earnings ESP, the stock currently holds a Zacks Rank of 3, making it challenging to predict an earnings beat conclusively [12]. Investors are advised to consider other factors beyond earnings results when making investment decisions [15][17].

Company Overview - CGI is one of the largest independent IT and business consulting services firms globally, founded in 1976 [3] - The company employs 94,000 consultants and professionals worldwide, offering a comprehensive portfolio of services including strategic IT and business consulting, systems integration, managed IT and business process services, and intellectual property solutions [3] - CGI reported revenue of CA$14.68 billion for fiscal year 2024 [3] Upcoming Financial Results - CGI will release its third quarter fiscal year 2025 results on July 30, 2025, before the markets open [1] - The conference call to discuss the results will be held at 9:00 a.m. (EDT) on the same day, featuring management including François Boulanger, President and CEO, and Steve Perron, Executive Vice-President and CFO [2] - Interested parties can access a replay of the call until August 30, 2025, and a live webcast will be available on the company's investor relations website [2]

Core Insights - CGI has successfully launched an upgraded financial and administrative system for the City of Rockville, Maryland, utilizing the CGI Advantage® ERP platform, which enhances operational efficiency and streamlines processes [1][2][4]. Company Overview - CGI is one of the largest independent technology and professional services firms globally, founded in 1976, with a workforce of 94,000 professionals [7]. - The company reported a revenue of CA$14.68 billion for Fiscal 2024, with shares listed on both the TSX and NYSE [7]. Partnership and System Upgrade - The upgrade is part of a long-term partnership between CGI and the City of Rockville, which has relied on CGI for financial system management for over 30 years [4][5]. - The new system includes critical functions such as finance, procurement, inventory, human resources, and reporting, with plans for additional enhancements like vendor self-service [2][5]. System Features and Benefits - The CGI Advantage platform offers a modern, cloud-based solution that improves user experience for both remote and in-office employees, promoting productivity and access to essential information [3][5]. - The upgrade aims to increase transparency and visibility into government operations, fostering greater community engagement [3][5]. Future Outlook - CGI Advantage is designed to allow the City’s IT professionals to focus on oversight and innovation rather than system maintenance, with automatic updates ensuring the latest features and improved security [5][6].

Core Insights - CGI's annual global research reveals that organizations are increasingly focused on digital transformation, with AI and automation being the top investment priorities for executives [2][5] - The research indicates a significant shift towards fewer enterprise-level partners, emphasizing the need for partners with both technical expertise and deep industry experience [2][5] - The findings highlight that while organizations are investing in AI, they face challenges such as legacy systems and talent constraints that hinder their ability to achieve tangible ROI [5][6] Digital Transformation Trends - Two-thirds of executives report that digitization is reshaping business models, with a notable increase in this sentiment from previous years [5] - The pressure from macroeconomic and geopolitical uncertainties is pushing enterprises to cut costs while accelerating digital transformation efforts [5] - Despite challenges, nearly two-thirds of executives plan to maintain or increase capital expenditure next year, with over half intending to invest more than $200 million in new IT programs over the next three years [5] AI Implementation and Adoption - AI implementation is viewed as a key lever for driving efficiency and innovation, with 35% of organizations implementing traditional AI and 26% adopting generative AI, both showing year-over-year growth [5] - CGI emphasizes a structured approach to help clients integrate responsible AI into their operations, aiming for innovation and data-driven decision-making [3][5] Company Overview - CGI is one of the largest independent IT and business consulting services firms globally, with reported revenue of CA$14.68 billion for Fiscal 2024 [7] - The company employs 94,000 consultants and professionals worldwide, offering a comprehensive portfolio of services from strategic consulting to managed IT services [7]

CGI's CLS Manager solution and market expertise help ABN AMRO Bank reduce risk and expand third-party service offeringsNEW YORK, June 18, 2025 /PRNewswire/ -- CGI (NYSE: GIB) (TSX: GIB.A), one of the world's largest independent technology and professional services firms, today announced that the Netherlands' ABN AMRO Bank recently selected CGI's industry-leading Continuous Linked System (CLS) Manager solution to support its transition from a third-party participant to a full settlement member of the interna ...