Core Insights - The company has implemented cost-reduction actions that are expected to yield a benefit of approximately $150 million in profitability, primarily in the next fiscal year rather than the current quarter [1] - The prolonged government shutdown has caused disruptions, leading to an estimated cumulative impact of about $50 million on revenue and $20 million on profit for the full fiscal year [2] Financial Performance - For the third quarter, the company reported gross revenue of $2.6 billion, a decline of roughly 10% year-over-year, attributed to shutdown impacts [7] - Net income was $200 million, up 7% year-over-year, with adjusted net income at $215 million, reflecting a 9% increase [8] - Adjusted EBITDA for the quarter was $285 million, with a margin of 10.9% [7] Market Dynamics - The company experienced a decline in national security revenue by about 1% year-over-year, but a growth of approximately 4% when adjusting for shutdown-related timing [11] - Civil revenue saw a significant decline of about 28% year-over-year, which was anticipated [11] Backlog and Pipeline - The company ended the calendar year with a record total backlog of over $38 billion, up about 2% from the prior year [12] - The qualified pipeline for fiscal 2027 stood at nearly $53 billion as of December 31, reflecting a 12% increase from the previous year [13] Cash Flow and Capital Deployment - The company ended the quarter with $882 million in cash and a free cash flow of $248 million [14] - Capital deployment totaled $195 million, including $125 million in share repurchases and $67 million in dividends [15] Guidance and Future Outlook - The company is tightening revenue expectations toward the lower end of its range due to shutdown impacts while increasing adjusted EPS guidance [16] - Executives noted improved funding activity in December and early January, with a focus on fixed-price and outcome-based work [16]

Stock Market Symbols GIB.A (TSX) GIB (NYSE) cgi.com/newsroom Founded in 1976, CGI is among the largest independent IT and business consulting services firms in the world. With 94,000 consultants and professionals across the globe, CGI delivers an end-to-end portfolio of capabilities, from strategic IT and business consulting to systems integration, managed IT and business process services and intellectual property solutions. CGI works with clients through a local relationship model complemented by a global ...

Core Viewpoint - Science Applications International Corporation (SAIC) reported strong earnings per share (EPS) but faced challenges with revenue and bookings, leading to a decline in stock price despite the positive EPS performance [2][3][6] Financial Performance - SAIC reported an EPS of $3.63, significantly exceeding the estimated $2.25, and marking a substantial increase from $2.05 in the same quarter last year, resulting in an earnings surprise of +61.33% [2][6] - The company's revenue was $1.77 billion, which fell short of the estimated $1.86 billion and showed a slight decline from $1.82 billion reported in the previous year [2][6] Market Reaction - Despite the strong EPS performance, SAIC's stock price declined by 7% due to investor concerns over bookings, which fell short of expectations, indicating potential future revenue challenges [3][6] Valuation Metrics - SAIC has a price-to-earnings (P/E) ratio of approximately 14.46, a price-to-sales ratio of about 0.67, and an enterprise value to sales ratio of around 0.99, reflecting its market valuation relative to earnings and sales [4] - The company has a debt-to-equity ratio of approximately 1.62, indicating reliance on debt for financing operations, and a current ratio of around 0.78, suggesting challenges in covering short-term liabilities with short-term assets [5] Consistency in Performance - SAIC has consistently exceeded consensus EPS estimates in three of the last four quarters, which continues to attract attention in the industry despite the recent challenges [5]

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]