CGI reports higher quarterly earnings as revenue grows
Fiscal fourth-quarter revenue totaled C$4.15 billion, with adjusted net earnings rising 0.8%.
CGI INC (GIB), the consulting and managed-services company, reported a 3.3% increase in revenue for the fiscal fourth quarter ended Sept. 30, as net earnings climbed 20.8% to C$460.7 million. Revenue rose 2.5% excluding foreign currency variations.
The increase in reported profit was much larger than the gain on an adjusted basis. Adjusted net earnings rose 0.8% to C$475.4 million, and the adjusted net margin fell to 11.5% from 11.8% a year earlier. CGI adjusted the latest quarter’s earnings for C$14.6 million of restructuring, acquisition and related integration costs, net of tax, compared with C$90.4 million a year earlier.
Diluted earnings rose 30.2% to C$2.24 a share from C$1.72 a share. Adjusted diluted earnings rose 8.5% to C$2.31 a share. The weighted average diluted share count fell to 205.5 million from 221.9 million.
Earnings before income taxes increased 21.7% to C$628.3 million, with the corresponding margin rising to 15.2% from 12.9%. Adjusted earnings before interest and taxes rose 1.6% to C$678 million, and the adjusted margin declined to 16.4% from 16.6%. The quarter included C$19.7 million of acquisition and related integration costs.
For the full fiscal year, revenue increased 4.2% to C$16.57 billion, or 2.2% in constant currency. Net earnings rose 9.3% to C$1.81 billion, and adjusted net earnings increased 1.4% to C$1.9 billion. CGI’s diluted earnings for the year rose 16.7% to C$8.58 a share.
Quarterly bookings totaled C$4.53 billion, down from C$4.79 billion a year earlier, and represented 109.2% of quarterly revenue. Chief Executive Tim Hurlebaus pointed to a 122% quarterly book-to-bill ratio for AI-embedded managed services as a driver of bookings.
For the full year, bookings were C$17.51 billion, giving CGI a trailing 12-month book-to-bill ratio of 105.6%. Backlog stood at C$32.07 billion at Sept. 30, compared with C$31.45 billion a year earlier.
Quarterly cash provided by operating activities fell to C$551.9 million from C$663 million. For the full year, operating cash flow rose to C$2.48 billion from C$2.23 billion. CGI also spent C$166.7 million under its share-purchase program during the quarter, including payment for some shares bought in the preceding quarter.
As CGI entered fiscal 2027, Hurlebaus said the company was positioned to invest in growth both internally and through acquisitions. He said enterprise-scale artificial intelligence was part of client conversations and proposals, and that client interest in practical applications of quantum computing was growing.
CGI’s board approved an 8.8% increase in the quarterly dividend to C$0.185 a share. The dividend is payable Dec. 18 to holders of its Class A subordinate voting shares and Class B multiple voting shares.
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