CGI Group (NYSE:GIB) Rating Lowered to Sector Perform at Royal Bank Of Canada

Key Points

• Royal Bank of Canada downgraded CGI Group from "outperform" to "sector perform," signaling reduced near‑term conviction from a major sell‑side analyst.
• Street coverage is mixed—one Strong Buy, five Holds and one Sell—with a MarketBeat consensus rating of "Hold" and a consensus target price of $112.00, well above the recent share price (~$64.85).
• CGI's latest quarter missed expectations (EPS $1.51 vs. $1.55 consensus; revenue below forecasts), the stock traded down (~1.1%), and the company trades at a PE of about 12 with a 12‑month range of $61.90–$110.07.

CGI Group (NYSE:GIB - Get Free Report) TSE: GIB.A was downgraded by equities researchers at Royal Bank Of Canada from an "outperform" rating to a "sector perform" rating in a research report issued on Thursday.

Several other analysts also recently weighed in on GIB. Scotiabank assumed coverage on shares of CGI Group in a research note on Tuesday, January 27th. They set a "sector perform" rating for the company. TD Securities raised CGI Group to a "strong-buy" rating in a research note on Wednesday, January 28th. Finally, Weiss Ratings downgraded CGI Group from a "hold (c-)" rating to a "sell (d+)" rating in a report on Friday, March 27th. One equities research analyst has rated the stock with a Strong Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the stock currently has a consensus rating of "Hold" and a consensus target price of $112.00.

CGI Group Trading Down 1.1%

GIB stock opened at $64.85 on Thursday. The company has a market capitalization of $13.93 billion, a PE ratio of 12.12 and a beta of 0.58. CGI Group has a 12 month low of $61.90 and a 12 month high of $110.07. The firm's 50-day moving average is $73.04 and its 200 day moving average is $82.78. The company has a debt-to-equity ratio of 0.28, a current ratio of 0.94 and a quick ratio of 0.70.

CGI Group (NYSE:GIB - Get Free Report) TSE: GIB.A last released its quarterly earnings data on Wednesday, January 28th. The technology company reported $1.51 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.55 by ($0.04). The company had revenue of $2.96 billion during the quarter, compared to analysts' expectations of $4.08 billion. CGI Group had a net margin of 10.25% and a return on equity of 18.61%. CGI Group's quarterly revenue was up 7.7% on a year-over-year basis. During the same period last year, the firm earned $1.97 earnings per share. On average, research analysts anticipate that CGI Group will post 6.51 EPS for the current year.

Hedge Funds Weigh In On CGI Group

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Mediolanum International Funds Ltd raised its stake in shares of CGI Group by 35.1% during the 3rd quarter. Mediolanum International Funds Ltd now owns 67,190 shares of the technology company's stock worth $5,972,000 after acquiring an additional 17,448 shares in the last quarter. Kepler Cheuvreux Suisse SA acquired a new stake in CGI Group in the third quarter valued at approximately $6,498,000. Syon Capital LLC grew its holdings in CGI Group by 69.7% in the third quarter. Syon Capital LLC now owns 4,260 shares of the technology company's stock worth $380,000 after purchasing an additional 1,749 shares during the last quarter. Rossby Financial LCC increased its position in shares of CGI Group by 49,840.0% during the third quarter. Rossby Financial LCC now owns 4,994 shares of the technology company's stock worth $449,000 after purchasing an additional 4,984 shares in the last quarter. Finally, Venturi Wealth Management LLC purchased a new stake in shares of CGI Group during the 1st quarter valued at $204,000. Hedge funds and other institutional investors own 66.68% of the company's stock.

Trending Headlines about CGI Group

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

• Positive Sentiment: Strategic partnership with Cleura expands CGI's sovereign cloud and AI offerings in the Nordics, strengthening its regionally aligned cloud capabilities and addressing regulatory demand — a growth catalyst for European clients. CGI expands sovereign cloud and AI offerings through strategic partnership with Cleura in the Nordics
• Positive Sentiment: Q2 FY2026 results showed EPS accretion and margin expansion: adjusted diluted EPS and net earnings rose year‑over‑year, bookings and backlog remain strong (book-to-bill ~104% and backlog ~$31.5B), supporting medium‑term revenue visibility. CGI reports second quarter Fiscal 2026 results
• Positive Sentiment: Company declared a quarterly dividend (C$0.17 per share; yield ~1.0%), reinforcing shareholder returns and income appeal for yield‑oriented investors.
• Positive Sentiment: Street sentiment includes bullish analyst views and a notable average price‑target upside (~34% per Zacks), which could support upside if execution and revenue trends improve. Wall Street Analysts Predict a 34.19% Upside in CGI (GIB): Here's What You Should Know
• Neutral Sentiment: Quarterly EPS of $1.65 matched consensus, signalling earnings stability but not an upside surprise to drive the stock higher. CGI Group (GIB) Q2 Earnings Match Estimates
• Neutral Sentiment: Earnings call transcript and investor materials are available for deeper diligence; management commentary on growth drivers and FX/organic trends will matter for near‑term sentiment. CGI Inc. GIB.A: CA Q2 2026 Earnings Call Transcript
• Neutral Sentiment: Major bank coverage remains mixed; Scotiabank maintained a hold rating, indicating limited near‑term conviction from some sell‑side analysts. Scotiabank Keeps Their Hold Rating on CGI (GIB)
• Negative Sentiment: Revenue came in slightly below consensus (reported ~$2.99B vs. ~$3.05B expected in one USD‑reported summary) and organic growth was modest (~3.3% y/y), which likely prompted investor disappointment and the intraday sell‑off. CGI Group quarterly earnings and conference call materials

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.

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