CGI Group (NYSE:GIB) Issues Quarterly Earnings Results, Hits Expectations

CGI Group (NYSE:GIB) (TSE:GIB.A) posted its quarterly earnings data on Wednesday. The technology company reported $1.65 earnings per share (EPS) for the quarter, meeting the consensus estimate of $1.65, Zacks reports. The company had revenue of $2.99 billion during the quarter, compared to analyst estimates of $3.05 billion. CGI Group had a return on equity of 18.72% and a net margin of 10.26%.The firm’s quarterly revenue was up 3.3% on a year-over-year basis. During the same quarter last year, the company earned $2.12 earnings per share.

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

• Record bookings and backlog — Q2 bookings were CAD 4.3B (book‑to‑bill 104%), trailing‑12‑month bookings reached a record CAD 18B, and contracted backlog is CAD 31.5B with ~CAD 12B expected to be recognized in the next 12 months.
• Strong profitability and cash generation — adjusted EBIT was CAD 692M (16.6% margin), adjusted EPS rose to CAD 2.27 (+7.1% YoY), Q2 cash from operations was CAD 451M and trailing‑12‑month cash is CAD 2.5B; the company returned CAD 397M via buybacks and declared a CAD 0.17 quarterly dividend.
• AI strategy and M&A accelerating demand — management emphasized an “AI‑first” approach (DigiOps, IP integrations), expanded partnerships with AWS/OpenAI/Google and others, and completed the Stratfield acquisition to strengthen AI/consulting capabilities while pipeline opportunities are up >180%.
• Near‑term regional headwinds and costs — decision‑making delays affected U.S. Federal and parts of Europe (Nordics/Finland) and manufacturing demand in Germany is softening; acquisition/integration costs of CAD 41M and a new French corporate surcharge raised the expected effective tax rate to ~26%–27%.

CGI Group Trading Up 1.7%

Shares of GIB traded up $1.09 during trading hours on Friday, hitting $66.53. The company had a trading volume of 604,383 shares, compared to its average volume of 489,221. The firm has a market cap of $14.29 billion, a P/E ratio of 12.01 and a beta of 0.58. The stock’s 50 day moving average price is $72.88 and its 200 day moving average price is $82.66. The company has a quick ratio of 0.70, a current ratio of 0.94 and a debt-to-equity ratio of 0.28. CGI Group has a 52-week low of $61.90 and a 52-week high of $110.07.

CGI Group Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, June 19th. Stockholders of record on Friday, May 15th will be issued a $0.17 dividend. The ex-dividend date is Friday, May 15th. This represents a $0.68 annualized dividend and a dividend yield of 1.0%. CGI Group’s payout ratio is currently 8.66%.

Analyst Ratings Changes

GIB has been the topic of a number of research reports. Scotiabank initiated coverage on CGI Group in a research report on Tuesday, January 27th. They set a “sector perform” rating on the stock. Weiss Ratings downgraded CGI Group from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Friday, March 27th. Royal Bank Of Canada downgraded CGI Group from an “outperform” rating to a “sector perform” rating and lowered their price target for the company from $150.00 to $100.00 in a research report on Thursday. UBS Group lowered their price target on CGI Group from $79.00 to $70.00 and set a “neutral” rating on the stock in a research report on Thursday. Finally, TD Securities upgraded CGI Group to a “strong-buy” rating in a research report on Wednesday, January 28th. One equities research analyst has rated the stock with a Strong Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, CGI Group presently has a consensus rating of “Hold” and an average price target of $83.67.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of the stock. Strive Financial Group LLC purchased a new position in shares of CGI Group in the fourth quarter worth about $37,000. Danske Bank A S purchased a new position in shares of CGI Group in the third quarter worth about $768,000. Entropy Technologies LP purchased a new position in shares of CGI Group in the third quarter worth about $236,000. EverSource Wealth Advisors LLC increased its holdings in CGI Group by 53.3% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,452 shares of the technology company’s stock valued at $152,000 after purchasing an additional 505 shares during the period. Finally, Jane Street Group LLC increased its holdings in CGI Group by 29.4% during the 1st quarter. Jane Street Group LLC now owns 12,858 shares of the technology company’s stock valued at $1,284,000 after purchasing an additional 2,921 shares during the period. Hedge funds and other institutional investors own 66.68% of the company’s stock.

CGI Group Company Profile

CGI Group Inc is a global information technology and business consulting firm that delivers a broad range of services including IT consulting, systems integration, application development and maintenance, infrastructure and network services, managed IT and business process outsourcing. The company works with clients to design, build and operate IT systems and business solutions, with capabilities spanning cloud and hybrid IT environments, cybersecurity, data analytics and artificial intelligence, digital transformation and enterprise resource planning implementations.

Founded in 1976 in Quebec by Serge Godin and André Imbeau, CGI has grown from a regional systems integrator into a multinational professional services organization.