CGI (GIB) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue reached CAD 4.2 billion ($4.16 billion), up 3.3% year-over-year, driven by acquisitions, AI strategy, and strong APAC and European performance.

• Adjusted EBIT margin improved to 16.6%, with adjusted net earnings of CAD 483 million and diluted EPS up 10.6% year-over-year to $2.09.

• Bookings totaled CAD 4.3 billion ($4.31 billion) in Q2, with a book-to-bill ratio of 104% (103.8%); backlog at CAD 31.5 billion ($31.50 billion), or 1.9x revenue.

• Strong cash generation with CAD 451 million ($451 million) in Q2 and CAD 2.5 billion ($2.47 billion) over the trailing 12 months.

• Strategic investments in AI, M&A, and partnerships with AWS, OpenAI, Google Cloud, and others are accelerating growth.

Financial highlights

• Revenue up 3.3% year-over-year (1.6% in constant currency); APAC grew 7.2%, UK/Australia 16.5%, Western/Southern Europe 8.3%.

• Adjusted EBIT was CAD 692 million ($691.6 million), up 3.9% year-over-year, with a margin of 16.6%.

• Diluted EPS was CAD 2.09 ($2.09), up 10.6% year-over-year; adjusted EPS CAD 2.27 ($2.27), up 7.1%.

• Cash from operations in Q2 was CAD 451 million ($451.1 million, 10.9% of revenue); DSO remained at 40 days.

• Quarterly dividend of CAD 0.17 ($0.17) per share approved, payable June 19, 2026.

Outlook and guidance

• Expecting U.S. Federal segment to return to positive organic growth in Q3.

• Pipeline for new opportunities grew by over 40% year-over-year; two-thirds of executives plan to sustain or increase IT budgets.

• Gradual improvement anticipated for the rest of the year, with positive momentum in government and financial sectors.

• Double-digit EPS growth remains a long-term aspiration, supported by growth, acquisitions, and margin expansion.

• Ongoing investment in AI and digital transformation is a key growth driver.