CGI Inc.

CGI reported Q3 fiscal 2026 revenue of $4.2 billion, up 2.5% year over year, or up 1.3% excluding foreign exchange. Adjusted EBIT was $682 million, up 2.3% year over year, with a 16.3% margin; earnings before income taxes were $634 million for a 15.1% margin. GAAP net earnings were $465 million, up $57 million, and diluted EPS was $2.23, an accretion of 22.5% versus last year’s Q3. Adjusted net earnings were $478 million and adjusted diluted EPS was $2.29, up 9% year over year. For the first nine months of fiscal 2026, revenue was up 4.4% to $12.4 billion, adjusted EBIT was up 4% to $2 billion, and adjusted EPS was up 8% to $6.67. Forward-looking commentary pointed to a future tax rate of 26% to 27%, $31.8 billion of contracted backlog, and just over $12 billion of already contracted revenue to be realized over the next 12 months.

Tim Hurlebaus said CGI’s quarter reflected strong client demand, operational excellence, and a rising opportunity pipeline. He emphasized that AI is moving from experimentation into everyday operations, and that CGI’s industry expertise, client proximity, and independent model help clients deploy AI securely and operationally. His tone was confident and constructive, with repeated emphasis on focus, discipline, and staying close to clients rather than making major strategic shifts.

Steve Perron said the quarter delivered strong EPS accretion and cash generation, with cash from operations of $605 million in Q3 and $2.6 billion on a trailing 12-month basis. He highlighted a 16.3% adjusted EBIT margin, 43-day DSO, $3.2 billion in readily available capital resources, and a net debt leverage ratio of just over 1. He also outlined capital deployment of $105 million into the business, $50 million for acquisitions, $413 million of share repurchases, and $36 million returned via dividends, including a new quarterly dividend of $0.17 per share.

Analysts focused on whether CGI was changing strategy under its new CEO, the health of demand into Europe, the effect of AI on hiring, and whether higher AI-related contract values reflected pricing power or scope growth. Management said the overall strategy is unchanged, but execution will focus more sharply on a few priorities, especially where CGI has industry expertise, partner ecosystems, and sovereign/cloud capabilities. They also said they did not see late-quarter discretionary pullback like some peers, described some European delays as timing-related, and explained that higher contract values were mainly driven by scope and duration rather than simple pricing increases.