CGI Reports Third Quarter Revenue Growth and EPS Accretion
The IT services provider reported diluted earnings per share of 2.23 Canadian dollars, a 22.5% increase year-over-year
CGI Inc. (GIB) reported third quarter fiscal 2026 revenue of 4.19 billion Canadian dollars, up 2.5% year-over-year. On a constant currency basis, revenue grew 1.3%. Net earnings for the period rose 13.8% year-over-year to 465.2 million Canadian dollars.
Profitability metrics showed divergent trajectories. Earnings before income taxes rose 14.9% year-over-year to 633.9 million Canadian dollars, resulting in a margin of 15.1%. However, adjusted net earnings grew 1.7% to 478.3 million Canadian dollars, with the adjusted net earnings margin declining 10 basis points to 11.4%. Adjusted diluted earnings per share rose 9.0% to 2.29 Canadian dollars.
The company maintained a strong pipeline of future work. Bookings reached 4.20 billion Canadian dollars, yielding a book-to-bill ratio of 100.1%. On a trailing twelve-month basis, the book-to-bill ratio was 108.1%, an increase of 7% year-over-year. The company attributed this performance to strong awards in the government sector. Total backlog stood at 31.79 billion Canadian dollars, or 1.9x annual revenue.
Cash flow and capital allocation remained active. Cash provided by operating activities was 604.5 million Canadian dollars, or 14.4% of revenue. The company returned 35.7 million Canadian dollars to shareholders via a cash dividend of 0.17 Canadian dollars per share. Additionally, CGI invested 412.9 million Canadian dollars under its Normal Course Issuer Bid to purchase and cancel 4,427,600 Class A subordinate voting shares.
Debt levels increased during the quarter. Net debt rose to 3.68 billion Canadian dollars from 3.12 billion Canadian dollars a year earlier. The net debt-to-capitalization ratio climbed to 26.6% from 23.4%. Long-term debt and lease liabilities reached 4.34 billion Canadian dollars, a move the company said was driven primarily by a 95.8 million Canadian dollar foreign exchange impact.
As of June 30, 2026, the company employed approximately 94,000 consultants and professionals worldwide.