CGI (GIB) Q4 2025 earnings summary

Executive summary

• Q4 revenue reached $4.01 billion (CAD 4 billion), up 9.7% year-over-year, driven by AI-embedded managed services, acquisitions, and APAC demand.

• Book-to-bill ratio was 119% in Q4, with bookings of $4.8 billion and a 30% increase in pipeline opportunities.

• Fiscal 2025 revenue reached $15.91 billion, up 8.4% year-over-year, with a 4.6% increase in constant currency.

• Five acquisitions closed in fiscal 2025, expanding geographic and service reach.

• Double-digit adjusted EPS growth attributed to AI-embedded managed services, M&A, and share buybacks.

Financial highlights

• Q4 adjusted EBIT was $667 million, up 11.2% year-over-year, with a margin of 16.6%.

• Q4 adjusted net earnings were $472 million, margin 11.8%; adjusted diluted EPS was $2.13, up 10.9%.

• Q4 net earnings were $381 million (margin 9.5%), with diluted EPS of $1.72, impacted by restructuring and acquisition costs.

• Cash from operations in Q4 was $663 million (16.5% of revenue); full-year cash from operations was $2.23 billion.

• Dividend increased by 13% to $0.17 per share.

Outlook and guidance

• Management expects continued growth, leveraging financial strength, disciplined execution, AI, and emerging tech expertise.

• Pipeline of new opportunities increased nearly 30%, supporting future growth.

• Market uncertainty persists, with clients cautious on discretionary IT spend, especially SI&C projects.

• Managed services and AI-integrated services demand remains robust; pipeline for managed services up by over $11 billion year-over-year.

• U.S. federal shutdown expected to impact next quarter revenue by $60–$75 million and margin by $15–$22 million.