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Sep 30
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CGI Q4 2025 Earnings Report
CGI reported solid Q4 2025 results with strong revenue growth and margin resilience driven by AI-driven services and disciplined execution.
Key Takeaways
CGI delivered strong performance in Q4 2025, with a 9.7% year-over-year increase in revenue and double-digit adjusted EPS growth. Bookings were robust, resulting in a book-to-bill ratio above 1.0, signaling continued demand. Cash generation remained healthy, reinforcing the company’s financial strength.
Revenue reached CAD 4.01 billion, up 9.7% year-over-year.
Adjusted net earnings rose to CAD 471.7 million, with adjusted EPS of CAD 2.13.
Bookings totaled CAD 4.79 billion, with a book-to-bill ratio of 119.2%.
Cash from operations was CAD 663.0 million, representing 16.5% of revenue.
CGI
CGI
Forward Guidance
CGI expects continued growth fueled by AI-driven services, strong bookings pipeline, and financial discipline. Focus remains on shareholder returns and long-term margin expansion.
Positive Outlook
- Strong demand in AI and managed services.
- Robust pipeline with 30% increase in opportunities.
- Healthy free cash flow to support investments and returns.
- Book-to-bill ratio over 1.0 signals future revenue growth.
- Effective share buyback and dividend program enhances shareholder value.
Challenges Ahead
- Earnings before income taxes declined 12.9% YoY due to restructuring.
- Net margin decreased from 11.9% to 9.5% YoY.
- Foreign exchange contributed significantly to revenue growth.
- Integration and restructuring costs affected reported profitability.
- Higher net debt and leverage ratio compared to last year.