CGI Group (NYSE:GIB) Posts Quarterly Earnings Results

CGI Group (NYSE:GIB) (TSE:GIB.A) announced its quarterly earnings results on Wednesday. The technology company reported $1.51 earnings per share for the quarter, missing analysts’ consensus estimates 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 firm had revenue of $2.96 billion during the quarter, compared to analysts’ expectations of $4.08 billion. During the same quarter in the prior year, the business earned $1.97 EPS. The company’s quarterly revenue was up 7.7% compared to the same quarter last year.

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

GIB traded down $0.52 during trading hours on Thursday, hitting $85.83. The company’s stock had a trading volume of 260,137 shares, compared to its average volume of 327,865. The company has a 50-day simple moving average of $91.01 and a 200 day simple moving average of $92.12. The company has a current ratio of 0.99, a quick ratio of 0.72 and a debt-to-equity ratio of 0.27. The firm has a market capitalization of $18.81 billion, a PE ratio of 16.34 and a beta of 0.59. CGI Group has a fifty-two week low of $83.75 and a fifty-two week high of $122.79.

CGI Group Announces Dividend

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

Wall Street Analyst Weigh In

GIB has been the topic of several research analyst reports. TD Securities raised shares of CGI Group to a “strong-buy” rating in a research note on Friday, October 3rd. Royal Bank Of Canada reiterated an “outperform” rating on shares of CGI Group in a report on Monday, January 5th. Jefferies Financial Group restated a “hold” rating and set a $81.00 price objective (down previously from $105.00) on shares of CGI Group in a research note on Monday, November 10th. Scotiabank began coverage on CGI Group in a research report on Tuesday. They issued a “sector perform” rating for the company. Finally, Cibc Captl Mkts lowered CGI Group from a “strong-buy” rating to a “hold” rating in a research report on Sunday, December 14th. One investment 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 stock. Based on data from MarketBeat, the company currently has an average rating of “Hold” and a consensus price target of $117.00.

Institutional Trading of CGI Group

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. AQR Capital Management LLC purchased a new stake in CGI Group in the 1st quarter worth about $347,000. Millennium Management LLC lifted its position in shares of CGI Group by 786.2% in the first quarter. Millennium Management LLC now owns 81,470 shares of the technology company’s stock worth $8,141,000 after purchasing an additional 72,277 shares in the last quarter. Jane Street Group LLC boosted its holdings in shares of 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 period. EverSource Wealth Advisors LLC grew its position in CGI Group by 53.3% during the second quarter. EverSource Wealth Advisors LLC now owns 1,452 shares of the technology company’s stock valued at $152,000 after purchasing an additional 505 shares in the last quarter. Finally, Entropy Technologies LP acquired a new position in CGI Group in the 3rd quarter valued at approximately $236,000. 66.68% of the stock is owned by institutional investors and hedge funds.

Key CGI Group News

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

• Positive Sentiment: Robust cash flow and backlog — Q1 reported revenue growth (up 7.7% year‑over‑year), strong cash from operations (~$872M), bookings of C$4.47B and backlog of C$31.32B, plus adjusted EPS growth. These operational metrics support earnings quality and long‑term revenue visibility. CGI reports first quarter Fiscal 2026 results
• Positive Sentiment: Buyback program renewed — Board authorized renewal of the Normal Course Issuer Bid (NCIB), giving management flexibility to repurchase shares and potentially support the share price. CGI renews its Normal Course Issuer Bid
• Positive Sentiment: Analyst support — RBC Capital published a Buy on CGI, which can help stabilize sentiment and attract investor interest. CGI (GIB) Gets a Buy from RBC Capital
• Neutral Sentiment: Dividend declared — Quarterly dividend of $0.17 per share announced (record Feb 18, payable Mar 20); modest yield ~0.8% — positive for income but small in magnitude.
• Neutral Sentiment: Routine governance update — Director election results released following the Jan. 28 AGM; no material surprises reported. CGI reports director election results
• Neutral Sentiment: New coverage / transcripts available — Scotiabank began coverage and the company posted earnings and shareholder/analyst call transcripts and slides for review; useful for due diligence but not an immediate catalyst. Scotiabank Begins Coverage on CGI Group Q1 earnings call transcript
• Negative Sentiment: Earnings and revenue miss — Reported EPS of $1.51 missed the consensus (~$1.55) and revenue came in below some analyst expectations; that miss is the primary near‑term negative catalyst weighing on the share price. CGI Group (GIB) Lags Q1 Earnings and Revenue Estimates

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.