Desjardins Issues Optimistic Forecast for CGI Group Earnings

Key Points

• Desjardins has raised its Q2 2026 earnings per share estimate for CGI Group from $1.60 to $1.66, reflecting an optimistic outlook for the company.
• CGI Group reported earnings of $1.52 per share, surpassing analysts' expectations, and achieved a revenue growth of 11.4% compared to the same quarter the previous year.
• The company will distribute a quarterly dividend of $0.1086 per share, slightly increasing from the previous dividend of $0.11, and this reflects a payout ratio of 7.95%.

CGI Group, Inc. (NYSE:GIB - Free Report) TSE: GIB.A - Research analysts at Desjardins raised their Q2 2026 earnings per share (EPS) estimates for shares of CGI Group in a note issued to investors on Wednesday, July 30th. Desjardins analyst J. Dubreuil now anticipates that the technology company will earn $1.66 per share for the quarter, up from their previous forecast of $1.60. The consensus estimate for CGI Group's current full-year earnings is $5.79 per share. Desjardins also issued estimates for CGI Group's Q3 2026 earnings at $1.68 EPS, Q4 2026 earnings at $1.60 EPS and FY2026 earnings at $6.64 EPS.

Several other brokerages have also recently issued reports on GIB. Royal Bank Of Canada dropped their price target on CGI Group from $185.00 to $175.00 and set an "outperform" rating on the stock in a research report on Thursday, July 31st. UBS Group dropped their price objective on CGI Group from $112.00 to $105.00 and set a "neutral" rating for the company in a research note on Thursday, July 31st. Two research analysts have rated the stock with a hold rating, two have assigned a buy rating and one has given a strong buy rating to the company. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $148.25.

CGI Group Stock Up 0.6%

Shares of NYSE GIB traded up $0.63 during midday trading on Monday, hitting $97.60. 483,049 shares of the company's stock were exchanged, compared to its average volume of 310,238. The company has a debt-to-equity ratio of 0.35, a current ratio of 1.27 and a quick ratio of 0.94. CGI Group has a twelve month low of $92.85 and a twelve month high of $122.79. The company has a market cap of $21.76 billion, a PE ratio of 18.04, a P/E/G ratio of 1.78 and a beta of 0.72. The firm's fifty day simple moving average is $104.10 and its 200-day simple moving average is $106.29.

CGI Group (NYSE:GIB - Get Free Report) TSE: GIB.A last issued its earnings results on Wednesday, July 30th. The technology company reported $1.52 earnings per share for the quarter, topping the consensus estimate of $1.51 by $0.01. CGI Group had a return on equity of 18.53% and a net margin of 11.01%. The business had revenue of $3 billion for the quarter, compared to analyst estimates of $4.01 billion. During the same quarter last year, the company earned $1.91 EPS. The business's quarterly revenue was up 11.4% on a year-over-year basis.

CGI Group Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, September 19th. Stockholders of record on Friday, August 15th will be given a $0.1086 dividend. This is an increase from CGI Group's previous quarterly dividend of $0.11. This represents a $0.43 dividend on an annualized basis and a dividend yield of 0.4%. The ex-dividend date of this dividend is Friday, August 15th. CGI Group's dividend payout ratio (DPR) is presently 7.95%.

Institutional Investors Weigh In On CGI Group

A number of institutional investors have recently added to or reduced their stakes in the company. CIBC Private Wealth Group LLC boosted its position in shares of CGI Group by 840.3% in the fourth quarter. CIBC Private Wealth Group LLC now owns 3,244 shares of the technology company's stock worth $354,000 after buying an additional 2,899 shares during the period. Wellington Management Group LLP lifted its stake in shares of CGI Group by 5.8% in the fourth quarter. Wellington Management Group LLP now owns 102,080 shares of the technology company's stock worth $11,163,000 after acquiring an additional 5,564 shares in the last quarter. Franklin Resources Inc. lifted its stake in shares of CGI Group by 1.6% in the fourth quarter. Franklin Resources Inc. now owns 134,787 shares of the technology company's stock worth $14,729,000 after acquiring an additional 2,075 shares in the last quarter. Geode Capital Management LLC lifted its stake in shares of CGI Group by 27.5% in the fourth quarter. Geode Capital Management LLC now owns 1,272,840 shares of the technology company's stock worth $140,266,000 after acquiring an additional 274,370 shares in the last quarter. Finally, ExodusPoint Capital Management LP lifted its stake in shares of CGI Group by 69.1% in the fourth quarter. ExodusPoint Capital Management LP now owns 11,600 shares of the technology company's stock worth $1,268,000 after acquiring an additional 4,739 shares in the last quarter. Hedge funds and other institutional investors own 66.68% of the company's stock.

CGI Group Company Profile

CGI Inc, together with its subsidiaries, provides information technology (IT) and business process services. Its services include the business and strategic IT consulting, systems integration, and software solutions. The company also provides application development, modernization and maintenance, holistic enterprise digitization, automation, hybrid and cloud management, and business process services; intellectual property-based solutions; business consulting; managed IT services; and IT infrastructure services.