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Dec 31, 2025
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CGI Q1 2026 Earnings Report
CGI reported solid growth in Q1 2026, supported by strong demand for managed services and embedded AI, driving record-high cash generation.
Key Takeaways
CGI delivered a strong Q1 2026 with revenue reaching CA$4.08B and net income of CA$442M. Cash from operations hit a record CA$872M, and bookings exceeded revenue with a book-to-bill ratio above 100%.
Revenue rose to CA$4.08B in Q1 2026, a 7.7% increase year-over-year.
Net income totaled CA$442M, with adjusted net income reaching CA$461M.
Cash from operations hit a record CA$871.9M, or 21.4% of revenue.
Bookings reached CA$4.47B, resulting in a 109.5% book-to-bill ratio.
Forward Guidance
CGI emphasized continued investments in modernization and managed services with embedded AI, positioning the company for long-term growth, despite macroeconomic and public sector challenges.
Positive Outlook
- Strong client demand in managed services with AI integration.
- High book-to-bill ratio indicating sustained growth momentum.
- Record cash flow supports reinvestment and share buybacks.
- Backlog continues to grow, reaching CA$31.3B.
- Operational discipline continues to drive profitability.
Challenges Ahead
- U.S. federal government shutdown impacted margins.
- Adjusted EBIT margin declined slightly year-over-year.
- Return on invested capital dropped to 13.3% from 16.2%.
- Higher long-term debt due to new senior notes issuance.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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