CGI Inc.
- Open
- 73.89
- Day high
- 75.30
- Day low
- 73.70
- Prev close
- 72.85
- Volume
- 30K
- Mkt cap
- $15.5B
- P/E (TTM)
- 12.8
- EPS (TTM)
- $5.84
- P/B
- 2.1
- P/S
- 1.3
- Yield
- 0.66%
- Per share
- $0.49
CGI Inc. (GIB) is a Technology company listed on NYSE. The stock is down 24% over the past year. Drillr has 1 published research article covering GIB.
CGI Inc. (GIB) financials & analyst ratings
Fundamentals (TTM)
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
GIB earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Jul 29, 2026 | $1.61 | $1.61 | +0.0% | $3.0B | +0.4% |
| Apr 29, 2026 | $1.65 | $1.65 | +0.0% | $3.0B | -2.0% |
| Jan 28, 2026 | $1.55 | $1.51 | -2.6% | $3.0B | -29.7% |
| Nov 5, 2025 | $1.53 | $1.55 | +1.3% | $2.9B | -30.4% |
| Jul 30, 2025 | $1.51 | $1.52 | +0.7% | $3.0B | -25.2% |
| Apr 30, 2025 | $1.50 | $1.48 | -1.3% | $2.8B | -30.0% |
| Jan 29, 2025 | $1.41 | $1.41 | +0.0% | $2.6B | -33.8% |
| Jul 31, 2024 | $1.40 | $1.40 | +0.0% | $2.7B | +3.4% |
| May 1, 2024 | $1.44 | $1.46 | +1.4% | $2.8B | +2.6% |
| Jan 31, 2024 | $1.31 | $1.34 | +2.3% | $2.7B | +1.7% |
| Jul 26, 2023 | $1.32 | $1.34 | +1.5% | $2.7B | +1.8% |
| Feb 1, 2023 | $1.19 | $1.22 | +2.5% | $2.6B | +4.9% |
CGI Inc. company profile
Overview
CGI Inc. (NYSE:GIB) is a Canadian multinational information technology and business consulting services company founded in 1976 and headquartered in Montreal, Canada. Originally known as CGI Group Inc., the company changed its name to CGI Inc. in January 2019. Since going public in 1998, CGI has grown from a small Canadian IT services provider into one of the world's largest independent IT and business consulting services firms, serving clients across government, financial services, healthcare, utilities, and other major industries. The company operates globally with approximately 90,000 employees across multiple continents and maintains a strong focus on digital transformation, managed services, and proprietary intellectual property solutions.
Business
CGI operates in the information technology services industry, providing comprehensive IT and business process services to large organizations worldwide. The company's core business revolves around helping clients modernize their technology infrastructure, streamline operations, and navigate digital transformation initiatives. CGI's services can be broadly categorized into several key areas. Systems integration and consulting involves designing, implementing, and integrating complex technology systems for clients, often replacing legacy systems with modern digital platforms. Managed services represents the company's largest revenue driver, where CGI takes over the day-to-day operation and maintenance of clients' IT infrastructure, applications, and business processes under long-term contracts. This includes everything from managing data centers and networks to handling payroll processing and customer service operations. The company also develops and licenses intellectual property (IP) solutions - proprietary software products tailored for specific industries. These include specialized applications for government agencies, banking systems, healthcare management, and utility operations. IP solutions are particularly valuable because they can be licensed to multiple clients with higher profit margins than custom development work. Business process outsourcing services involve CGI taking over entire business functions for clients, such as human resources, finance and accounting, or customer service operations. Finally, the company provides application development and modernization services, helping clients build new software applications or update existing ones to work with modern technologies like cloud computing and artificial intelligence. Geographically, CGI generates revenue across several regions: North America (primarily Canada and the United States) typically accounts for approximately 60% of total revenue, Europe represents about 30%, and the Asia-Pacific region contributes roughly 10%. The government sector is CGI's largest industry vertical, representing approximately 37% of total revenue, followed by financial services at around 25%, with the remainder spread across healthcare, utilities, manufacturing, and other industries.
Revenue model
CGI generates revenue through multiple business models, with the majority coming from long-term service contracts. Managed services contracts represent the largest revenue stream, typically spanning 5-10 years where clients pay CGI monthly or quarterly fees to operate and maintain their IT systems and business processes. These contracts provide predictable, recurring revenue and often include built-in price escalations tied to inflation or performance improvements. Systems integration and consulting projects generate revenue through fixed-price contracts or time-and-materials arrangements where CGI is paid for designing and implementing technology solutions. While these projects can be highly profitable, they tend to be shorter-term and more cyclical than managed services. Intellectual property licensing provides some of CGI's highest-margin revenue, as the company can license the same software solutions to multiple clients with minimal additional development costs. IP revenue represented approximately 22% of total revenue in recent quarters and commands premium pricing due to the specialized nature of these industry-specific solutions. The company's paying customers are primarily large organizations including government agencies, major banks and financial institutions, healthcare systems, utilities, telecommunications companies, and large corporations. These clients typically have complex IT environments and prefer working with established vendors who can provide comprehensive, long-term support. Several factors influence CGI's profitability and margins. Positive margin drivers include the growing mix of higher-margin managed services and IP solutions, the company's global delivery model that leverages lower-cost offshore development centers (representing 22% of employees), and economies of scale from serving large enterprise clients. The company also benefits from long-term contract structures that provide revenue visibility and the ability to optimize resource allocation. Margin pressures come from wage inflation, particularly in competitive markets like the United States where technology talent commands premium salaries. Economic downturns can lead clients to delay or reduce spending on discretionary consulting and systems integration projects. Currency fluctuations also impact margins since CGI operates globally but reports in Canadian dollars. Additionally, the competitive nature of IT services can pressure pricing, especially for commodity services, though CGI's focus on specialized, higher-value offerings helps mitigate this risk.
Competitive moat
CGI's competitive moat is moderately strong, built primarily on client switching costs and relationship depth. Once CGI takes over a client's critical IT infrastructure or business processes through managed services contracts, replacing the vendor becomes extremely complex, expensive, and risky for the client. These engagements often involve CGI learning intimate details of the client's operations, customizing systems, and integrating deeply with existing processes, creating significant switching costs. The company's industry-specific intellectual property provides another defensive advantage. CGI has developed specialized software solutions for government agencies, banks, healthcare systems, and utilities that would be expensive and time-consuming for competitors to replicate. These IP solutions often become embedded in clients' core operations, further increasing switching costs. Scale advantages also contribute to CGI's moat. The company's global delivery model allows it to serve large, multinational clients across multiple time zones and geographies, something smaller competitors cannot easily replicate. CGI's size also enables it to invest in emerging technologies like artificial intelligence and maintain the broad skill sets required for complex digital transformation projects. However, CGI's moat faces several challenges. The IT services industry remains highly fragmented with numerous competitors ranging from global players like Accenture and IBM to specialized regional firms. Technology disruption poses an ongoing threat, as cloud computing, automation, and AI could potentially reduce demand for traditional IT services or enable new competitors to enter the market with different service models. Client concentration risk also limits the moat's strength - while CGI serves many large clients, losing a major government contract or large enterprise client can significantly impact revenue. Additionally, many of CGI's services, particularly consulting and systems integration, remain somewhat commoditized, limiting pricing power in competitive situations. Overall, CGI has built a respectable moat through client relationships and specialized capabilities, but it operates in a competitive industry where maintaining differentiation requires continuous investment in new technologies and talent.
Risks & safety
CGI demonstrates a solid margin of safety with strong financial fundamentals and conservative capital structure. **Cash and Liquidity Position:** - Cash and short-term investments of approximately $771 million as of Q2 2025 - Strong operating cash flow generation of $307 million in Q2 2025 alone - Free cash flow of $257 million in the quarter, indicating healthy cash conversion - Current ratio of 1.27, providing adequate short-term liquidity coverage **Debt and Solvency:** - Debt-to-equity ratio of 0.43, representing moderate and manageable leverage - No apparent solvency concerns given strong cash generation and balance sheet - Long-term contracted revenue backlog of $28.7 billion provides revenue visibility **Valuation Metrics:** - P/E ratio of 18.8, reasonable for a stable IT services company - EV/EBITDA of 11.8, within historical norms for the sector - Price-to-book ratio of 3.18, reflecting the asset-light nature of the business - Graham number of $44.04 suggests potential undervaluation relative to intrinsic value **Other Considerations:** - Diversified client base across government and private sectors reduces concentration risk - Geographic diversification across North America, Europe, and Asia-Pacific - Recurring revenue model from managed services provides earnings stability - Recent dividend initiation demonstrates management confidence in cash flow sustainability
Recent development
Over the past few years, CGI has executed several strategic initiatives to position itself for long-term growth and adapt to evolving market demands. The company has made significant investments in artificial intelligence, announcing a $1 billion AI investment program over three years. This includes establishing global AI centers of expertise, training all employees on AI technologies, and embedding AI capabilities into existing IP solutions and service offerings. Acquisitions have been a key growth driver, with CGI completing multiple strategic purchases including Daugherty in the U.S., BJSS in the U.K. (£275 million annual revenue), Celero in Canada's credit union sector, Aeyon for U.S. federal digital transformation, and most recently Momentum Technologies, Novatec, and announcing exclusivity for Apside. These acquisitions have expanded CGI's capabilities in high-growth areas and strengthened its presence in key markets. The company has also undergone leadership transitions, with Julie Godin appointed as Executive Chair while Serge Godin became Co-Chair, ensuring continuity in strategic direction. Capital allocation changes include the initiation of a quarterly dividend of $0.15 per share in 2024, reflecting confidence in cash flow generation while maintaining flexibility for growth investments. Operational improvements have included expanding global delivery capabilities, with offshore centers now representing 22% of total employees, and implementing restructuring programs primarily in Continental Europe to improve utilization and cost efficiencies. The company has also focused on growing its higher-margin managed services and IP solutions, with managed services bookings up 21% year-over-year and IP revenue maintaining approximately 22% of total revenue. CGI has strengthened its market position in key verticals, particularly government services where it represents over 50% of recent bookings, and has maintained strong client relationships with satisfaction scores reaching record highs of 9.6 out of 10. The company continues to pursue its "Build and Buy" strategy, balancing organic growth investments with selective acquisitions to expand capabilities and market reach.
GIB company profile · for informational purposes only — not investment advice.
Track GIB with Drillr
SEC filings, earnings calls, insider activity, alt-data signals — all queryable through Drillr's AI terminal and MCP API.
Try Drillr for free