CGI Group (NYSE:GIB) Releases Earnings Results, Beats Estimates By $0.01 EPS

Key Points

• CGI Group reported quarterly EPS of $1.65, beating analyst estimates by $0.01.
• Bookings and backlog were strong: Q4 bookings totaled $4.5 billion, and contracted backlog reached $32.1 billion. Full-year cash from operations rose 11% to $2.5 billion, and the company increased its quarterly dividend by 8.8%.
• Revenue grew a modest 2.5% in constant currency, with acquisitions contributing about 2.4 percentage points; shares fell 2.7% on Wednesday. Management cited growth opportunities in AI-enabled work and data sovereignty.

CGI Group (NYSE:GIB - Get Free Report) TSE: GIB.A issued its quarterly earnings results on Wednesday. The technology company reported $1.65 earnings per share for the quarter, topping analysts' consensus estimates of $1.64 by $0.01, Zacks reports. CGI Group had a return on equity of 18.83% and a net margin of 10.54%.

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

• Bookings and backlog remained strong: Q4 bookings were $4.5 billion, a 109% book-to-bill ratio, and contracted backlog reached $32.1 billion, or 1.9 times annual revenue. More than $12 billion is contracted for delivery over the next 12 months.
• Profitability and cash generation improved: Adjusted diluted EPS rose 8.5% year over year to $2.31, while full-year cash from operations increased 11% to $2.5 billion. CGI also raised its quarterly dividend 8.8%.
• Management sees opportunities for further growth: The company reported improving revenue momentum, stronger U.S. federal performance, and a pipeline that grew across core services; it expects continued improvement in fiscal 2027. Executives also cited AI-enabled work and data sovereignty needs as demand opportunities.
• Underlying revenue growth remained modest: Q4 revenue increased 2.5% in constant currency, with acquisitions contributing about 2.4 percentage points. Management also faced questions about weaker new-client bookings, though it pointed to a record backlog and variability in project timing.

CGI Group Stock Down 2.7%

Shares of GIB stock traded down $2.22 on Wednesday, reaching $80.29. 296,087 shares of the company's stock traded hands, compared to its average volume of 469,500. CGI Group has a 12-month low of $59.63 and a 12-month high of $95.20. The company has a debt-to-equity ratio of 0.28, a quick ratio of 0.66 and a current ratio of 0.93. The company has a market capitalization of $16.63 billion, a P/E ratio of 13.77 and a beta of 0.42. The business's 50 day moving average price is $74.21 and its two-hundred day moving average price is $72.22.

Analysts Set New Price Targets

A number of analysts have commented on GIB shares. Royal Bank Of Canada reaffirmed a "sector perform" rating and set a $100.00 price objective on shares of CGI Group in a research note on Tuesday, October 6th. TD Securities downgraded shares of CGI Group from a "buy" rating to a "hold" rating in a research report on Thursday, July 23rd. Finally, Weiss Ratings upgraded shares of CGI Group from a "sell (d+)" rating to a "hold (c-)" rating in a report on Wednesday, October 21st. Six equities research analysts have rated the stock with a Hold rating. According to MarketBeat, CGI Group has an average rating of "Hold" and an average target price of $85.00.

About CGI Group

CGI Inc., formerly known as CGI Group, is a Canadian information technology and business consulting company founded in 1976 in Montréal. It works with businesses and government organizations to plan, build and operate technology and business systems. The company provides IT and business consulting, systems integration, application development and maintenance, managed IT services, and business process services. Its work also covers areas such as cloud computing, cybersecurity, data analytics and digital transformation.

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