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

CGI Group (NYSE:GIB) (TSE:GIB.A) posted its quarterly earnings results on Wednesday. The technology company reported $1.65 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.64 by $0.01, Zacks reports. The business had revenue of $2.91 billion for the quarter, compared to analyst estimates of $2.90 billion. 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 1.6%

NYSE GIB opened at $81.15 on Thursday. The company has a debt-to-equity ratio of 0.28, a current ratio of 0.93 and a quick ratio of 0.66. The stock has a market capitalization of $16.80 billion, a PE ratio of 13.92 and a beta of 0.42. CGI Group has a 1 year low of $59.63 and a 1 year high of $95.20. The business’s 50-day moving average is $74.36 and its 200 day moving average is $72.18.

CGI Group Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, December 18th. Stockholders of record on Friday, November 27th will be issued a dividend of C$0.18 per share. This is an increase from CGI Group’s previous quarterly dividend of C$0.17. This represents a $0.74 dividend on an annualized basis and a dividend yield of 0.9%. The ex-dividend date is Friday, November 27th. CGI Group’s dividend payout ratio (DPR) is currently 8.23%.

Analyst Upgrades and Downgrades

GIB has been the subject of several recent research reports. Royal Bank Of Canada reiterated a “sector perform” rating and issued a $100.00 price objective on shares of CGI Group in a research report on Tuesday, October 6th. TD Securities cut shares of CGI Group from a “buy” rating to a “hold” rating in a 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 investment analysts have rated the stock with a Hold rating. Based on data from MarketBeat, the company has an average rating of “Hold” and an average price target of $85.00.

Trending Headlines about CGI Group

Here are a few of the latest headlines about GIB:

• Positive Sentiment: Quarterly results topped estimates: Q4 revenue rose 3.3% to C$4.15 billion, while reported EPS of $1.65 edged past the $1.64 consensus estimate. Net earnings increased 20.8% year over year, and diluted EPS rose 30.2%. CGI reports fourth quarter and Fiscal 2026 results
• Neutral Sentiment: Analyst stance: A separate report says Wall Street analysts rate the shares “Hold,” suggesting neither strong consensus optimism nor a clear bearish shift. CGI Group stock rated Hold by Wall Street analysts
• Negative Sentiment: Adjusted growth was subdued: Q4 adjusted EBIT increased 1.6% and adjusted net earnings rose 0.8%; revenue growth was 2.5% in constant currency. These slower underlying growth rates may have offset the headline earnings beat and strong reported net-earnings increase. CGI reports fourth quarter and Fiscal 2026 results

CGI Group Company Profile

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.