CGI (GIB) Q1 2026 earnings summary

Executive summary

• Q1 fiscal 2026 revenue reached $4.1B, up 7.7% year-over-year (3.4% in constant currency), with strong profitability and record cash from operations of $872M, supporting continued investment in AI and growth strategies.

• Net earnings were $442M, up 0.8% year-over-year, with diluted EPS of $2.03, a 5.7% increase.

• Bookings totaled nearly $4.5B, with a book-to-bill ratio of 110% and a trailing 12-month total of nearly $18B, led by managed services and strong renewal rates above 95%.

• Strategic acquisitions, including BJSS in the UK and Apside in Europe, drove segment growth and expanded capabilities, particularly in AI, engineering, and managed services.

• Record-high cash from operations at $872M, representing 21.4% of revenue.

Financial highlights

• Adjusted EBIT was $655M (16.1% margin), up 7.1% year-over-year; adjusted net earnings were $461M (11.3% margin), with adjusted EPS at $2.12, up 7.6%.

• Cash from operations reached $872M (21.4% of revenue), up from $646M in the prior year; DSO improved to 37 days.

• Net debt rose to $3.45B, with a net debt-to-capitalization ratio of 25.7%.

• Return on invested capital was 13.3%, down from 16.2% a year ago.

• Weighted average diluted shares outstanding decreased by 10.5M year-over-year.

Outlook and guidance

• Sequential improvement expected in U.S. Federal segment after shutdown; gradual improvement anticipated for the rest of the year, with a focus on organic constant currency growth and modernization.

• Pipeline for SI&C opportunities in advanced stages up over 40% year-over-year; managed services pipeline up more than 20%.

• Expectation to remain active in share repurchases and maintain dividend program.

• Continued investment in operational discipline and delivery quality to drive future growth.

• Forward-looking statements caution about risks from economic, political, and industry-specific factors.