CGI Group Q1 Earnings Call Highlights

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]