CGI (GIB) Q3 2025 earnings summary

Executive summary

• Revenue for Q3 FY2025 grew 11.4% year-over-year to CAD 4.1 billion ($4.09 billion), driven by acquisitions, strong financial services, and AI-related client wins.

• Adjusted EBIT was CAD 666 million ($666.1 million), up 10.5% year-over-year, with a margin of 16.3%.

• Net earnings declined 7.2% to CAD 409 million ($408.6 million), while adjusted net earnings increased 6.8% to CAD 470 million ($470.1 million).

• Bookings exceeded CAD 4 billion ($4.15 billion), with a book-to-bill ratio of 101% for the quarter and 107% on a trailing twelve-month basis; backlog reached CAD 30.6 billion ($30.58 billion).

• Strategic capital deployment, resilience, and strong AI momentum supported top-quartile performance among IT services peers.

Financial highlights

• Revenue up 11.4% year-over-year (7% in constant currency); North America up 7.4%, Europe up 6.6%.

• Adjusted EBIT margin at 16.3%, nearly flat year-over-year; net earnings margin at 10%.

• Adjusted net earnings were CAD 470 million ($470.1 million), margin 11.5%; diluted EPS CAD 2.10 ($2.10), up 9.9% year-over-year.

• Cash from operations was CAD 487 million ($486.6 million), 11.9% of revenue; trailing twelve-month cash from operations was CAD 2.2 billion ($2.20 billion).

• DSO was 43 days, 2 days better than target.

Outlook and guidance

• Expect to incur approximately CAD 100 million ($100 million) in restructuring costs over the remainder of 2025.

• Effective tax rate expected to remain in the 25.5%-26.5% range.

• Management focused on resilience, profitable growth, and continued investment in AI, IP, and accretive acquisitions.

• Signs of stabilization in government procurement and renewed client spending in banking and financial services.

• Managed services and IP pipelines up over 20% and 10% year-over-year, respectively.