CGI (GIB) Q1 2026 earnings summary

Executive summary

• Q1 revenue reached $4.08 billion (CAD 4.1 billion), up 7.7% year-over-year, driven by acquisitions and APAC managed services growth, with 3.4% growth in constant currency.

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

• Adjusted EBIT reached $655 million, up 7.1% year-over-year, with a margin of 16.1%.

• Bookings totaled $4.5 billion, with a book-to-bill ratio of 109.5% and contracted backlog at $31.3 billion.

• Cash from operations was $872 million, representing 21.4% of revenue, supporting ongoing consolidation strategy.

Financial highlights

• Adjusted net earnings were $461 million (11.3% margin); adjusted diluted EPS was $2.12, up 7.6% year-over-year.

• Net earnings margin was 10.8%; operating and net earnings margins declined year-over-year.

• Effective tax rate rose to 26.3%, mainly due to a statutory increase in France.

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

• DSO improved to 37 days, down 8 days sequentially.

Outlook and guidance

• Expecting sequential improvement in U.S. Federal segment and overall business for the rest of the year, barring further shutdowns.

• Anticipates continued improvement in organic constant currency growth by fiscal year-end.

• Focus remains on modernization, managed services, and embedding advanced AI solutions.

• Pipeline of SI&C opportunities in advanced stages up over 40% year-over-year.

• Gradual improvement expected in Europe and other key markets.