Research · Sep 3, 2026
[GIB] CGI Thesis 2026: Government IT Revenue and Buyback Drive First Billion-Dollar Profit Year
CGI Inc. FY25 (Sep year-end) revenue $15.91B (+8%); op income $3.28B (+36%); NI $1.66B (-2%); EPS $7.35 (+1%). Op margin 20.6% (+400bp YoY) — structural margin expansion. FCF $1.96B (+1%). Capex $-270M (~1.7% of revenue, asset-light). Buyback $-1.29B (+29% YoY). Dividend $-135M (initiated FY24). Total debt $4.47B (+35% YoY). One of world's largest independent IT services + consulting + outsourcing firms (Montreal-headquartered Canadian global delivery model). Multi-vertical specialization: Banking + Financial Services (~22%) + Government (~28%) + Manufacturing + Retail + Distribution (~18%) + Health (~12%) + Communications + Utilities (~10%) + Other (~10%). Service lines: IT Outsourcing + Managed Services (~50%) + Consulting + Systems Integration (~35%) + Business Process Services (~10%) + IP Solutions (~5%). Multi-decade tuck-in M&A strategy; Aaron Group acquisition completed FY24-FY25. AI + cloud + automation + IP solutions advancing. Note: FY25 Q4 earnings call data + FY26 guidance not in source dataset; analysis based on financial_statements view + multi-decade IT services compounding pattern.