CGI Reports Second Quarter Revenue Growth and EPS Accretion
The IT consulting firm reported diluted earnings per share of 2.09 Canadian dollars, a 10.6% increase year-over-year.
CGI Inc. (GIB) reported second quarter fiscal 2026 revenue of 4.16 billion Canadian dollars, representing a 3.3% increase year-over-year. The IT consulting firm saw diluted earnings per share rise 10.6% to 2.09 Canadian dollars.
Net earnings reached 444.7 million Canadian dollars, up 3.5% year-over-year, with a net earnings margin of 10.7%. Adjusted net earnings rose 0.6% to 483.4 million Canadian dollars, while adjusted diluted earnings per share increased 7.1% to 2.27 Canadian dollars. Earnings before income taxes grew 6.0% to 617.7 million Canadian dollars.
Demand indicators showed a positive trajectory in bookings and backlog. Bookings for the quarter were 4.31 billion Canadian dollars, resulting in a book-to-bill ratio of 103.8%. On a trailing twelve-month basis, the book-to-bill ratio stood at 108.4%. As of March 31, 2026, the company's backlog reached 31.50 billion Canadian dollars, which represents 1.9x annual revenue.
Cash generation remained a primary driver of the company's financial position. Cash provided by operating activities was 451.1 million Canadian dollars, or 10.9% of revenue. On a trailing twelve-month basis, operating cash flow reached 2.47 billion Canadian dollars, representing 15.1% of revenue.
Capital allocation focused on shareholder returns and internal investment. The company invested 104.5 million Canadian dollars back into its business and spent 396.9 million Canadian dollars to purchase and cancel Class A subordinate voting shares under its Normal Course Issuer Bid. Additionally, CGI paid 36.2 million Canadian dollars in dividends to shareholders.
Debt levels shifted slightly during the period. Net debt rose to 3.57 billion Canadian dollars from 3.24 billion Canadian dollars a year earlier, and the net debt-to-capitalization ratio increased to 26.3% from 24.1%. Long-term debt and lease liabilities decreased to 4.30 billion Canadian dollars from 4.37 billion Canadian dollars, a move the company attributed mainly to a 68.9 million Canadian dollar foreign exchange impact.
To increase financial agility for future capital requirements, the company increased its unsecured committed revolving credit facility to 2.50 billion Canadian dollars on April 28, 2026. The facility now consists of a 1.00 billion Canadian dollar three-year tranche maturing in 2029 and a 1.50 billion Canadian dollar five-year tranche maturing in 2031.