CGI Group (NYSE:GIB) Announces Earnings Results

CGI Group (NYSE:GIB) (TSE:GIB.A) released its earnings results on Wednesday. The technology company reported $1.65 EPS for the quarter, topping analysts’ consensus estimates of $1.64 by $0.01, Zacks reports. CGI Group had a return on equity of 18.83% and a net margin of 10.54%.

Here are the key takeaways from CGI Group’s conference call:

• Bookings and backlog remained strong: Q4 bookings were $4.5 billion, a 109% book-to-bill ratio, and contracted backlog reached $32.1 billion, or 1.9 times annual revenue. More than $12 billion is contracted for delivery over the next 12 months.
• Profitability and cash generation improved: Adjusted diluted EPS rose 8.5% year over year to $2.31, while full-year cash from operations increased 11% to $2.5 billion. CGI also raised its quarterly dividend 8.8%.
• Management sees opportunities for further growth: The company reported improving revenue momentum, stronger U.S. federal performance, and a pipeline that grew across core services; it expects continued improvement in fiscal 2027. Executives also cited AI-enabled work and data sovereignty needs as demand opportunities.
• Underlying revenue growth remained modest: Q4 revenue increased 2.5% in constant currency, with acquisitions contributing about 2.4 percentage points. Management also faced questions about weaker new-client bookings, though it pointed to a record backlog and variability in project timing.

CGI Group Price Performance

GIB stock traded down $1.42 during mid-day trading on Wednesday, reaching $81.09. 325,992 shares of the company traded hands, compared to its average volume of 469,580. The company has a fifty day moving average price of $74.21 and a 200-day moving average price of $72.22. CGI Group has a 52-week low of $59.63 and a 52-week high of $95.20. The company has a market capitalization of $16.79 billion, a P/E ratio of 13.90 and a beta of 0.42. The company has a debt-to-equity ratio of 0.28, a current ratio of 0.93 and a quick ratio of 0.66.

Wall Street Analysts Forecast Growth

GIB has been the topic of several research reports. TD Securities lowered shares of CGI Group from a “buy” rating to a “hold” rating in a research report on Thursday, July 23rd. Royal Bank Of Canada reiterated a “sector perform” rating and issued a $100.00 price objective on shares of CGI Group in a research note on Tuesday, October 6th. Finally, Weiss Ratings raised CGI Group from a “sell (d+)” rating to a “hold (c-)” rating in a research report on Wednesday, October 21st. Six equities research analysts have rated the stock with a Hold rating. Based on data from MarketBeat.com, the stock currently has an average rating of “Hold” and an average target price of $85.00.

CGI Group Company Profile

CGI Inc., formerly known as CGI Group, is a Canadian information technology and business consulting company founded in 1976 in Montréal. It works with businesses and government organizations to plan, build and operate technology and business systems. The company provides IT and business consulting, systems integration, application development and maintenance, managed IT services, and business process services. Its work also covers areas such as cloud computing, cybersecurity, data analytics and digital transformation.