CGI Group (NYSE:GIB) Announces Earnings Results

CGI Group (NYSE:GIB) (TSE:GIB.A) released its earnings results on Wednesday. The technology company reported $1.51 EPS for the quarter, missing analysts’ consensus estimates of $1.55 by ($0.04), Zacks reports. The business had revenue of $2.96 billion for the quarter, compared to analyst estimates of $4.08 billion. CGI Group had a return on equity of 18.52% and a net margin of 10.25%.CGI Group’s revenue was up 7.7% on a year-over-year basis. During the same period in the prior year, the firm posted $1.97 EPS.

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

• Q1 results — Revenue was CAD 4.1 billion (up 7.7% YoY, 3.4% ex-FX), adjusted EBIT CAD 655 million (16.1% margin), adjusted EPS CAD 2.12 (up 8%), and the company generated CAD 872 million of operating cash while repurchasing CAD 577 million of stock.
• Bookings and backlog remained strong with CAD 4.5 billion in bookings (book-to-bill 110%), managed services leading at a 117% book-to-bill, and a contracted backlog of CAD 31.3 billion (1.9x revenue); excluding U.S. federal activity bookings rose to 118%.
• AI strategy acceleration — 65% of CGI IP now incorporates AI, ~40% of consultants have advanced AI/data expertise, the firm launched an internal AI Exchange, and struck alliances with Google Cloud (Gemini) and OpenAI to scale agentic and enterprise AI offerings.
• U.S. federal shutdown and one-time charge pressured utilization and margins in the quarter (bookings were impacted), and results included a one-time CAD 8 million past-service cost in India; management warns the U.S. federal environment remains dynamic and lumpiness may continue.
• Strategic M&A and capital allocation — recent deals (BJSS, Apside, Comarch division, Online Business Systems) expanded UK/European and Canadian capabilities, the board renewed an NCIB for up to 19 million shares and approved a CAD 0.17 quarterly dividend, with CAD 2.4 billion in available capital and net leverage of 1.

CGI Group Stock Up 0.3%

Shares of GIB traded up $0.29 during midday trading on Friday, hitting $85.99. The stock had a trading volume of 85,290 shares, compared to its average volume of 343,788. The company has a 50 day simple moving average of $91.01 and a two-hundred day simple moving average of $92.07. CGI Group has a twelve month low of $83.75 and a twelve month high of $122.79. The firm has a market cap of $18.85 billion, a price-to-earnings ratio of 16.10 and a beta of 0.59. The company has a debt-to-equity ratio of 0.27, a current ratio of 0.99 and a quick ratio of 0.72.

CGI Group Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Friday, March 20th. Investors of record on Wednesday, February 18th will be paid a $0.17 dividend. The ex-dividend date of this dividend is Wednesday, February 18th. This represents a $0.68 dividend on an annualized basis and a yield of 0.8%. CGI Group’s dividend payout ratio is presently 8.99%.

Institutional Investors Weigh In On CGI Group

Hedge funds and other institutional investors have recently bought and sold shares of the company. EverSource Wealth Advisors LLC boosted its position in CGI Group by 53.3% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,452 shares of the technology company’s stock worth $152,000 after acquiring an additional 505 shares during the last quarter. Entropy Technologies LP bought a new stake in shares of CGI Group in the third quarter worth $236,000. Jane Street Group LLC boosted its holdings in CGI Group by 29.4% during the first quarter. Jane Street Group LLC now owns 12,858 shares of the technology company’s stock worth $1,284,000 after purchasing an additional 2,921 shares during the last quarter. AQR Capital Management LLC bought a new position in CGI Group in the first quarter valued at $347,000. Finally, Danske Bank A S bought a new position in CGI Group in the third quarter valued at $768,000. Institutional investors and hedge funds own 66.68% of the company’s stock.

Analyst Ratings Changes

Several research firms have weighed in on GIB. Jefferies Financial Group reissued a “hold” rating and issued a $81.00 target price (down previously from $105.00) on shares of CGI Group in a research note on Monday, November 10th. Royal Bank Of Canada reiterated an “outperform” rating on shares of CGI Group in a research report on Monday, January 5th. Scotiabank assumed coverage on shares of CGI Group in a report on Tuesday. They set a “sector perform” rating for the company. Weiss Ratings reaffirmed a “hold (c-)” rating on shares of CGI Group in a research note on Monday, December 29th. Finally, TD Securities upgraded shares of CGI Group to a “strong-buy” rating in a report on Friday, October 3rd. One research analyst has rated the stock with a Strong Buy rating, one has given a Buy rating and five have given a Hold rating to the company’s stock. According to MarketBeat, the company presently has a consensus rating of “Hold” and an average target price of $117.00.

About CGI Group

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.