CGI Group (NYSE:GIB) Issues Quarterly Earnings Results

CGI Group (NYSE:GIB) (TSE:GIB.A) posted its quarterly earnings results on Wednesday. The technology company reported $1.51 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.55 by ($0.04), Zacks reports. CGI Group had a net margin of 10.41% and a return on equity of 18.55%. The company had revenue of $2.96 billion during the quarter, compared to the consensus estimate of $4.08 billion. During the same period in the prior year, the company posted $1.97 EPS. CGI Group’s quarterly revenue was up 7.7% on a year-over-year basis.

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 Performance

Shares of NYSE GIB traded down $0.35 during trading hours on Thursday, hitting $86.00. 122,658 shares of the stock were exchanged, compared to its average volume of 320,180. CGI Group has a one year low of $83.75 and a one year high of $122.79. The company’s 50 day moving average is $91.01 and its 200 day moving average is $92.12. The company has a debt-to-equity ratio of 0.27, a current ratio of 0.99 and a quick ratio of 0.72. The firm has a market capitalization of $18.85 billion, a P/E ratio of 16.35 and a beta of 0.59.

CGI Group Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, March 20th. Stockholders of record on Wednesday, February 18th will be paid a $0.17 dividend. This represents a $0.68 dividend on an annualized basis and a dividend yield of 0.8%. The ex-dividend date is Wednesday, February 18th. CGI Group’s payout ratio is presently 9.13%.

Wall Street Analysts Forecast Growth

Several brokerages have recently commented on GIB. Jefferies Financial Group reaffirmed a “hold” rating and set a $81.00 target price (down from $105.00) on shares of CGI Group in a report on Monday, November 10th. Weiss Ratings reissued a “hold (c-)” rating on shares of CGI Group in a research report on Monday, December 29th. Scotiabank initiated coverage on shares of CGI Group in a research report on Tuesday. They issued a “sector perform” rating for the company. Cibc Captl Mkts cut shares of CGI Group from a “strong-buy” rating to a “hold” rating in a research report on Sunday, December 14th. Finally, Royal Bank Of Canada restated an “outperform” rating on shares of CGI Group in a report on Monday, January 5th. One research analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating and five have given a Hold rating to the company’s stock. According to MarketBeat.com, the company presently has an average rating of “Hold” and a consensus target price of $117.00.

Key Headlines Impacting CGI Group

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

• Positive Sentiment: Q1 results showed strong cash generation and backlog that support near-term cash flow and revenue visibility — cash from operations of CAD 872M (21.4% of revenue), bookings CAD 4.47B and backlog CAD 31.32B. This underpins valuation and buyback capacity. CGI reports first quarter Fiscal 2026 results
• Positive Sentiment: Board authorized renewal of the Normal Course Issuer Bid (NCIB), signalling management willingness to repurchase shares to increase shareholder value and support the share price. CGI renews its Normal Course Issuer Bid
• Positive Sentiment: Quarterly dividend announced: CAD 0.17 per share (record Feb 18, payable Mar 20), a modest yield that supports income-seeking investors. CGI reports director election results
• Positive Sentiment: RBC Capital initiated/issued a Buy note (reported by Globe and Mail), which can spur demand from institutional and retail investors. CGI (GIB) Gets a Buy from RBC Capital
• Neutral Sentiment: Scotiabank began coverage with a “Sector Perform” rating — provides incremental research coverage but not a strong positive catalyst. Scotiabank Begins Coverage on CGI Group (NYSE:GIB)
• Neutral Sentiment: Annual General Meeting / director election results completed — routine governance update with limited immediate market impact. CGI reports director election results
• Negative Sentiment: Some outlets flagged that reported EPS and revenue missed certain U.S. consensus estimates (e.g., Zacks reported EPS $1.51 vs. estimate $1.55), which tempers enthusiasm and could cap near-term upside. CGI Group (GIB) Lags Q1 Earnings and Revenue Estimates

Institutional Investors Weigh In On CGI Group

Several hedge funds and other institutional investors have recently made changes to their positions in the business. EverSource Wealth Advisors LLC increased its stake in shares of CGI Group by 53.3% in the second quarter. EverSource Wealth Advisors LLC now owns 1,452 shares of the technology company’s stock worth $152,000 after purchasing an additional 505 shares during the period. Entropy Technologies LP acquired a new stake in CGI Group in the 3rd quarter valued at approximately $236,000. Jane Street Group LLC increased its position in CGI Group by 29.4% in the 1st quarter. Jane Street Group LLC now owns 12,858 shares of the technology company’s stock worth $1,284,000 after buying an additional 2,921 shares during the period. AQR Capital Management LLC bought a new stake in shares of CGI Group in the first quarter valued at approximately $347,000. Finally, Danske Bank A S acquired a new stake in shares of CGI Group in the third quarter worth $768,000. 66.68% of the stock is owned by institutional investors and hedge funds.

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.