CGI Group (NYSE:GIB) Posts Quarterly Earnings Results, Beats Expectations By $0.05 EPS

CGI Group (NYSE:GIB) (TSE:GIB.A) released its earnings results on Wednesday. The technology company reported $1.66 earnings per share for the quarter, beating the consensus estimate of $1.61 by $0.05, Zacks reports. The business had revenue of $2.95 billion during the quarter, compared to analysts’ expectations of $2.94 billion. CGI Group had a net margin of 10.26% and a return on equity of 18.72%. The firm’s revenue was up 2.5% on a year-over-year basis. During the same period last year, the business earned $2.10 earnings per share.

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

• Q3 earnings and cash generation were strong: Revenue rose 2.5% year over year to CAD 4.2 billion, adjusted EPS increased 9% to CAD 2.29, and cash from operations reached CAD 605 million.
• Backlog and demand indicators remain healthy. Trailing-12-month bookings were CAD 17.8 billion with a 108% book-to-bill ratio, while contracted backlog totaled CAD 31.8 billion, or 1.9 times annual revenue.
• AI-related opportunities are expanding. CGI said its overall 12-month pipeline grew more than 10% year over year, with AI-embedded opportunities nearly doubling to approximately CAD 10 billion and managed-services and SI&C pipelines up 20% and more than 30%, respectively.
• Organic growth remained modest at 1.3% excluding foreign exchange, although U.S. Federal performance improved and APAC and European growth benefited from acquisitions and delivery-center demand. Management also acknowledged some delayed decision-making in Europe and expects future tax rates of 26% to 27%.
• CGI plans to continue investing in AI capabilities, acquisitions, and sovereign infrastructure while returning capital through buybacks and dividends; its low leverage and CAD 3.2 billion in available capital resources leave room for larger M&A.

CGI Group Stock Performance

CGI Group stock traded down $1.22 during trading hours on Thursday, hitting $73.28. The company had a trading volume of 712,475 shares, compared to its average volume of 497,235. The firm has a 50-day moving average of $66.65 and a 200 day moving average of $72.32. The company has a debt-to-equity ratio of 0.28, a current ratio of 0.95 and a quick ratio of 0.68. The firm has a market cap of $15.50 billion, a PE ratio of 13.23 and a beta of 0.48. CGI Group has a one year low of $59.63 and a one year high of $98.19.

CGI Group Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Friday, September 18th. Shareholders of record on Friday, August 14th will be issued a $0.17 dividend. This represents a $0.68 annualized dividend and a yield of 0.9%. The ex-dividend date of this dividend is Friday, August 14th. CGI Group’s dividend payout ratio is currently 9.03%.

Analyst Upgrades and Downgrades

GIB has been the subject of a number of analyst reports. Weiss Ratings reissued a “sell (d+)” rating on shares of CGI Group in a research report on Wednesday, June 24th. TD Securities downgraded shares of CGI Group from a “buy” rating to a “hold” rating in a research note on Thursday, July 23rd. Royal Bank Of Canada cut CGI Group from an “outperform” rating to a “sector perform” rating and reduced their price target for the stock from $150.00 to $100.00 in a report on Thursday, April 30th. Finally, UBS Group lowered their price target on CGI Group from $79.00 to $70.00 and set a “neutral” rating on the stock in a research report on Thursday, April 30th. Six analysts have rated the stock with a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, CGI Group has an average rating of “Reduce” and an average price target of $83.67.

Trending Headlines about CGI Group

Here are the key news stories impacting CGI Group this week:

• Positive Sentiment: Quarterly earnings exceeded expectations. CGI reported adjusted earnings of $1.66 per U.S. share, above the $1.61 consensus estimate, while revenue reached approximately $2.95 billion versus expectations of $2.94 billion. Earnings also improved from the prior-year quarter on a comparable basis. CGI Group quarterly earnings report
• Positive Sentiment: Official results highlighted significant EPS and profit growth. In Canadian-dollar terms, fiscal Q3 revenue rose 2.5% year over year to C$4.19 billion, while diluted EPS increased 22.5% to C$2.23. Net earnings grew 13.8%, and earnings before income taxes rose 14.9%, indicating improved profitability and margins. CGI reports third quarter fiscal 2026 results
• Positive Sentiment: Bookings and backlog support future revenue visibility. CGI generated C$4.20 billion in bookings, producing a 100.1% book-to-bill ratio, or 108.1% on a trailing 12-month basis. Its C$31.79 billion backlog equates to roughly 1.9 times annual revenue.
• Positive Sentiment: Investor ratings remain supportive. A GuruFocus assessment gave CGI a GF Score of 77, reflecting favorable evaluations of the company’s profitability, growth, financial strength and valuation. CGI shares and GF Score analysis
• Neutral Sentiment: CGI declared a quarterly dividend of $0.17 per share. The payment is scheduled for September 18 for shareholders of record on August 14. The roughly 0.9% annualized yield provides modest shareholder income but is unlikely to be a major stock catalyst.
• Negative Sentiment: Revenue growth remained relatively subdued. Although sales increased 2.5% year over year, constant-currency growth was only 1.3%, suggesting currency effects and a slower top-line expansion could limit near-term upside.

Hedge Funds Weigh In On CGI Group

A number of large investors have recently made changes to their positions in GIB. Millennium Management LLC boosted its stake in CGI Group by 786.2% in the 1st quarter. Millennium Management LLC now owns 81,470 shares of the technology company’s stock valued at $8,141,000 after purchasing an additional 72,277 shares during the period. Danske Bank A S acquired a new stake in shares of CGI Group during the third quarter worth $768,000. AQR Capital Management LLC acquired a new stake in shares of CGI Group during the first quarter worth $347,000. Jane Street Group LLC boosted its position in shares of CGI Group by 29.4% in the first quarter. Jane Street Group LLC now owns 12,858 shares of the technology company’s stock valued at $1,284,000 after acquiring an additional 2,921 shares during the period. Finally, Entropy Technologies LP acquired a new position in shares of CGI Group in the third quarter valued at about $236,000. Institutional investors own 66.68% of the company’s stock.

CGI Group Company Profile

CGI Group Inc is a global information technology and business consulting firm that delivers a broad range of services including IT consulting, systems integration, application development and maintenance, infrastructure and network services, managed IT and business process outsourcing. The company works with clients to design, build and operate IT systems and business solutions, with capabilities spanning cloud and hybrid IT environments, cybersecurity, data analytics and artificial intelligence, digital transformation and enterprise resource planning implementations.

Founded in 1976 in Quebec by Serge Godin and André Imbeau, CGI has grown from a regional systems integrator into a multinational professional services organization.