CGI reports first quarter Fiscal 2026 results

Rhea-AI Summary

CGI (TSX: GIB.A / NYSE: GIB) reported Q1-F2026 revenue of $4.08 billion, up 7.7% year-over-year (3.4% constant currency). Adjusted EBIT was $655.1 million (16.1% margin). Cash from operations reached a record $871.9 million (21.4% of revenue).

Bookings were $4.47 billion with backlog of $31.32 billion (1.9x annual revenue). Net earnings were $442.0 million with diluted EPS of $2.03. The company repurchased $576.6 million of shares and declared a $0.17 quarterly dividend.

Positive

• Record cash from operations of $871.9 million (21.4% of revenue)
• Share repurchases of $576.6 million under Normal Course Issuer Bid
• Backlog of $31.32 billion, equating to 1.9x annual revenue
• Issued senior notes providing financing capacity of $923.9 million (March 2025)

Negative

• Net debt increased to $3.45 billion (from $1.57 billion)
• Net debt-to-capitalization rose to 25.7% (1,200 bps increase YoY)
• Cash and cash equivalents declined by $964.9 million to $836.4 million
• Return on invested capital fell 290 bps to 13.3%

Key Figures

Revenue: $4.08B Diluted EPS: $2.03 Adjusted diluted EPS: $2.12 +5 more

8 metrics

Revenue $4.08B Q1-F2026, up 7.7% year-over-year

Diluted EPS $2.03 Q1-F2026, up 5.7% year-over-year

Adjusted diluted EPS $2.12 Q1-F2026, up 7.6% year-over-year

Cash from operations $871.9M Q1-F2026, 21.4% of revenue

Bookings $4.47B Q1-F2026, book-to-bill 109.5%

Backlog $31.32B As of Dec 31, 2025, 1.9x annual revenue

NCIB authorization 18,975,360 shares Normal Course Issuer Bid renewal over next 12 months

Quarterly dividend $0.17 per share Payable Mar 20, 2026 to holders of record Feb 18, 2026

Market Reality Check

Price: $86.35 Vol: Volume 420,512 is 1.41x t...

normal vol

$86.35 Last Close

Volume Volume 420,512 is 1.41x the 20-day average of 297,817, indicating elevated trading interest before this release. normal

Technical Shares at $88.23 trade below the 200-day MA of $96.46 and sit 28.15% under the 52-week high of $122.79, only 5.04% above the 52-week low.

Peers on Argus

GIB was down 1.08% while key peers mostly declined: LDOS -0.82%, CDW -1.57%, IT ...

GIB was down 1.08% while key peers mostly declined: LDOS -0.82%, CDW -1.57%, IT -1.60%, BR -0.53%. WIT rose 2.76%. With no peers in the momentum scanner and mixed moves, trading appeared more stock-specific than a clear sector-wide trend.

Historical Context

5 past events · Latest: Jan 21 (Neutral)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Jan 21	AGM & results timing	Neutral	+0.7%	Announced AGM logistics and timing for Q1-F2026 results release.
Jan 20	AI alliance expansion	Positive	-4.9%	Expanded global alliance with Google Cloud to scale Gemini Enterprise use.
Jan 15	AI fraud platform	Positive	-2.1%	Launched AI-powered FWA platform via U.S. Treasury FM QSMO Marketplace.
Jan 08	Industry recognition	Positive	+2.6%	Named Major Contender in Everest Group’s 2025 PEAK Matrix assessment.
Jan 05	Acquisition closing	Positive	-0.1%	Completed acquisition of Comarch Polska SA to expand presence in Poland.

Pattern Detected

Recent history shows several positive strategic and AI-related announcements followed by mixed to negative next-day moves, suggesting the stock has at times sold off or remained muted on ostensibly constructive news.

Recent Company History

Over the past month, CGI has reported multiple strategic updates. On Jan 5, 2026, it completed the acquisition of Comarch Polska SA to expand in Poland. This was followed by recognition in Everest Group’s 2025 PEAK Matrix® on Jan 8, and an AI-powered fraud, waste and abuse platform listing on the U.S. Treasury’s FM QSMO Marketplace on Jan 15. A deeper AI alliance with Google Cloud around Gemini Enterprise came on Jan 20, and logistics for the Fiscal 2026 Q1 results and AGM were detailed on Jan 21. The current Q1 results extend this sequence with concrete financial performance and capital returns.

Market Pulse Summary

This announcement details a solid Q1-F2026, with revenue of $4.08B growing 7.7% year-over-year and a...

Analysis

This announcement details a solid Q1-F2026, with revenue of $4.08B growing 7.7% year-over-year and adjusted diluted EPS of $2.12. Strong cash generation of $871.9M (21.4% of revenue), bookings of $4.47B and backlog of $31.32B highlight demand durability. At the same time, net debt and certain margins have moved unfavorably. The renewed Normal Course Issuer Bid and $0.17 dividend frame capital allocation priorities. Investors may watch future margin trends, debt metrics and booking quality in subsequent quarters.

Key Terms

book-to-bill ratio, backlog, net debt-to-capitalization ratio, days sales outstanding (DSO), +3 more

7 terms

book-to-bill ratio financial

"Bookings1 of $4.47 billion, for a book-to-bill ratio1 of 109.5% or 110.4% on a trailing..."

The book-to-bill ratio compares the value of new orders a company receives to the value of products it ships out or bills for over a certain period. If the ratio is above 1, it means the company is getting more orders than it is completing, which can indicate growth. If it's below 1, it suggests demand is slowing down.

backlog financial

"andBacklog1 of $31.32 billion or 1.9x annual revenue."

A backlog is the amount of work or orders that a company has received but hasn't completed yet. It’s like a restaurant with many dishes to serve; the backlog shows how many orders are still waiting to be finished. It matters because a large backlog can indicate strong demand or potential delays in delivering products or services.

net debt-to-capitalization ratio financial

"The net debt-to-capitalization ratio2 was 25.7% at the end of December 2025."

Net debt-to-capitalization ratio shows how much of a company's funding comes from borrowed money after subtracting cash it holds, by comparing net debt (debt minus cash) to the total capital available (net debt plus equity). It matters to investors because it reveals how reliant a company is on borrowing versus owners’ funds—like checking a household’s mortgage relative to home value—to gauge financial risk, borrowing flexibility and resilience in downturns.

days sales outstanding (DSO) financial

"Days sales outstanding (DSO) 3 | 37 | 38 | (1)"

Days sales outstanding (DSO) measures the average number of days a company takes to collect payment after making a sale. It matters to investors because it shows how quickly cash comes in: shorter DSO is like being paid promptly after delivering work, supporting smoother cash flow and lower credit risk, while longer DSO can signal slow collections, potential liquidity stress, or weaker payment terms compared with peers.

return on invested capital (ROIC) financial

"Return on invested capital (ROIC) 3 | 13.3 % | 16.2 % | (290 bps)"

Return on invested capital (ROIC) measures how much profit a company generates from the money put into its business, including debt and equity. Think of it like the harvest you get from seeds you planted: higher ROIC means the company uses its resources more efficiently to grow earnings. Investors care because ROIC shows whether a business is creating value above its cost of financing and helps compare operational effectiveness across companies.

normal course issuer bid financial

"Normal Course Issuer BidOn January 27, 2026, the Company's Board of Directors authorized..."

A Normal Course Issuer Bid is when a company buys back its own shares from the stock market over time. This usually shows that the company believes its stock is undervalued and wants to support its price, which can be important for investors to watch.

eligible dividend financial

"The dividend is designated as an 'eligible dividend' for Canadian tax purposes."

An eligible dividend is a type of company payout treated as higher-quality income for tax purposes, typically coming from a corporation’s profits that have already been taxed at higher corporate rates. For investors this matters because eligible dividends usually result in a larger tax benefit or lower personal tax than other dividends, so they increase the after-tax return much like getting a thicker coupon on the same purchase.

AI-generated analysis. Not financial advice.

Stock Market Symbols
GIB.A (TSX)
GIB (NYSE)
cgi.com/newsroom

Revenue up 7.7% with cash generation of $872 million or 21.4% of revenue¹

Q1-F2026 performance highlights

• Revenue of $4.08 billion, up 7.7% year-over-year or 3.4% year-over-year in constant currency¹;
• Earnings before income taxes of $599.8 million, up 1.4% year-over-year, for a margin¹ of 14.7%;
• Adjusted earnings before interest and taxes^1,2 of $655.1 million, up 7.1% year-over-year, for a margin¹ of 16.1%;
• Net earnings of $442.0 million for a margin¹ of 10.8%, and diluted EPS of $2.03, up 5.7% year-over-year;
• Adjusted net earnings^1,2 of $461.0 million for a margin¹ of 11.3%, and adjusted diluted EPS^1,2 of $2.12, up 7.6% year-over-year;
• Cash provided by operating activities of $871.9 million, representing 21.4% of revenue¹;
• Bookings¹ of $4.47 billion, for a book-to-bill ratio¹ of 109.5% or 110.4% on a trailing twelve month basis; and
• Backlog¹ of $31.32 billion or 1.9x annual revenue.

Note: All figures in Canadian dollars. Q1-F2026 MD&A, interim condensed consolidated financial statements and accompanying notes can be found at cgi.com/investors and have been filed with the Canadian Securities Administrators on SEDAR+ at www.sedarplus.ca and the U.S. Securities and Exchange Commission on EDGAR at www.sec.gov.

MONTRÉAL, Jan. 28, 2026 /PRNewswire/ - CGI (TSX : GIB.A) (NYSE : GIB)

Q1-F2026 results

"As CGI begins its 50th year in business in 2026, our first quarter results continued to reflect the strength of our business model, client relationships, expertise and operational discipline," said François Boulanger, President and Chief Executive Officer. "CGI's performance in the first quarter reflected where clients continue to invest—modernization and managed services, with advanced AI solutions embedded. This drove strong overall wins in the quarter, led by managed services at 117% book-to-bill. The CGI team's discipline in managing our business and delivery quality generated record-high cash from operations of $872 million, continuing to deepen CGI's position as an active consolidator."

_______________________

1 Constant currency revenue growth, adjusted earnings before interest and taxes, adjusted earnings before interest and taxes margin, adjusted net earnings, adjusted net earnings margin and adjusted diluted EPS are non-GAAP financial measures or ratios. Earnings before income taxes margin, net earnings margin, cash provided by operating activities as a percentage of revenue, bookings, book-to-bill ratio, and backlog are key performance measures. See "Non-GAAP and other key performance measures" section of this press release for more information, including quantitative reconciliations to the closest International Financial Reporting Standards (IFRS Accounting Standards) measure, as applicable. These are not standardized financial measures under IFRS Accounting Standards and might not be comparable to similar financial measures disclosed by other companies.

2 Q1-F2026 adjusted for $19.0 million of restructuring, acquisition and related integration costs, net of tax; Q1-F2025 adjusted for $10.4 million of restructuring, acquisition and related integration costs, net of tax.

For the first quarter of Fiscal 2026, the Company reported revenue of $4.08 billion, representing a year-over-year growth of 7.7%. When excluding foreign currency variations, revenue grew by 3.4% year-over-year.

Earnings before income taxes were $599.8 million, up 1.4% year-over-year, for a margin of 14.7%, compared to 15.6% in the same period last year.  Recorded in the period were acquisition and related integration costs of $26.2 million.

Adjusted earnings before interest and taxes¹ were $655.1 million, up 7.1% year-over-year, for a margin of 16.1%, down 10 basis points compared to the same period last year unfavorably impacted by the effects of the U.S. federal government shutdown.

Net earnings were $442.0 million, up 0.8% compared with the same period last year, for a margin of 10.8%, compared to 11.6% in the same period last year. Diluted earnings per share, as a result, were $2.03 compared to $1.92 last year, representing an increase of 5.7%.

Adjusted net earnings¹ were $461.0 million, up 2.7% compared with the same period last year, for a margin of 11.3%, down 60 basis points compared to the same period last year. On the same basis, diluted earnings per share increased by 7.6% to $2.12 from $1.97 for the same period last year.

Cash provided by operating activities was $871.9 million, representing 21.4% of revenue. On a trailing twelve month basis, cash provided by operating activities was $2.46 billion, representing 15.2% of revenue.

Bookings were $4.47 billion, representing a book-to-bill ratio of 109.5% or 110.4% on a trailing twelve-month basis. As of December 31, 2025, the Company's backlog reached $31.32 billion, representing 1.9x annual revenue.

As of December 31, 2025, the number of CGI consultants and professionals worldwide stood at approximately 94,000.

During the first quarter of Fiscal 2026, the Company invested $86.5 million back into its business, acquired businesses for an investment of $105.7 million net of cash acquired, and invested $576.6 million under its current Normal Course Issuer Bid to purchase and cancel Class A subordinate voting shares. In addition, CGI returned $37.0 million back to its shareholders through the payment of a dividend.

As at December 31, 2025, long-term debt and lease liabilities, including both their current and long-term portions, were $4.29 billion, up from $3.40 billion at the same time last year, mainly driven by the issuance of senior unsecured notes for an amount $923.9 million in March 2025.  As of the same date, net debt² stood at $3.45 billion, up from $1.57 billion at the same time last year. The net debt-to-capitalization ratio² was 25.7% at the end of December 2025.

______________________

1 Q1-F2026 adjusted for $19.0 million of restructuring, acquisition and related integration costs, net of tax; Q1-F2025 adjusted for $10.4 million of restructuring, acquisition and related integration costs, net of tax.

2 Net debt and net debt-to-capitalization ratio are non-GAAP financial measures or ratios. See "Non-GAAP and other key performance measures" section of this press release for more information, including quantitative reconciliations to the closest IFRS Accounting Standards measure, as applicable. These are not standardized financial measures under IFRS Accounting Standards and might not be comparable to similar financial measures disclosed by other companies.

 

Financial highlights	Q1-F2026	Q1-F2025	Change
In millions of Canadian dollars except earnings per share and where noted
Revenue	4,078.4	3,785.2	293.2
Year-over-year revenue growth	7.7 %	5.1 %	260 bps
Constant currency revenue growth	3.4 %	2.7 %	70 bps
Earnings before income taxes	599.8	591.7	8.1
Margin %	14.7 %	15.6 %	(90 bps)
Adjusted earnings before interest and taxes1	655.1	611.7	43.4
Margin %	16.1 %	16.2 %	(10 bps)
Net earnings	442.0	438.6	3.4
Margin %	10.8 %	11.6 %	(80 bps)
Adjusted net earnings1	461.0	449.0	12.0
Margin %	11.3 %	11.9 %	(60 bps)
Diluted EPS	2.03	1.92	0.11
Adjusted diluted EPS1	2.12	1.97	0.15
Weighted average number of outstanding shares (diluted) In millions of shares	217.7	228.2	(10.5)
Net finance costs	29.1	6.6	22.5
Cash and cash equivalents	836.4	1,801.3	(964.9)
Long-term debt and lease liabilities2	4,291.0	3,400.2	890.8
Net debt	3,449.2	1,569.8	1,879.4
Net debt to capitalization ratio	25.7 %	13.7 %	1,200 bps
Cash provided by operating activities	871.9	646.4	225.5
As a percentage of revenue	21.4 %	17.1 %	430 bps
Days sales outstanding (DSO)3	37	38	(1)
Purchase for cancellation of Class A subordinate voting shares and related tax	576.6	152.9	423.7
Return on invested capital (ROIC)3	13.3 %	16.2 %	(290 bps)
Bookings	4,468	4,156	312
Backlog	31,317	29,765	1,552

To access the financial statements – click here

To access the MD&A – click here 

__________________________

1 Q1-F2026 adjusted for $19.0 million of restructuring, acquisition and related integration costs, net of tax; Q1-F2025 adjusted for $10.4 million of restructuring, acquisition and related integration costs, net of tax.

2 Long-term debt and lease liabilities include both the current and long-term portions of the long-term debt and lease liabilities.

3 ROIC is a non-GAAP financial measure. DSO is a key performance measure. See "Non-GAAP and other key performance measures" section of this press release for more information, including quantitative reconciliations to the closest IFRS Accounting Standards measure, as applicable. These are not standardized financial measures under IFRS Accounting Standards and might not be comparable to similar financial measures disclosed by other companies.

Normal Course Issuer Bid

On January 27, 2026, the Company's Board of Directors authorized the renewal of its Normal Course Issuer Bid, which, subject to approval by the Toronto Stock Exchange, allows for the purchase for cancellation of up to 18,975,360 Class A subordinate voting shares over the next 12 months, representing approximately 10% of the Company's public float as of the close of business on January 23, 2026. The current program will terminate on February 5, 2026, and repurchases of Class A subordinate voting shares under the renewed program may commence on February 6, 2026. For further information, please refer to the Company's press release regarding the renewal of its Normal Course Issuer Bid.

Declaration of Dividend

On January 27, 2026, our Board of Directors approved a quarterly cash dividend of $0.17 per share. This dividend is payable to holders of Class A subordinate voting shares and Class B shares (multiple voting) on March 20, 2026, to shareholders of record as of the close of business on February 18, 2026.  The dividend is designated as an 'eligible dividend' for Canadian tax purposes.

Q1-F2026 results conference call

Management will host a conference call this morning at 9:00 a.m. (EST) to discuss results. Participants may access the call by dialing +1-800-717-1738 Conference ID: 35024 or via cgi.com/investors. For those unable to participate on the live call, a podcast and copy of the slides will be archived for download at cgi.com/investors. Interested parties may also access a replay of the call by dialing +1-888-660-6264  Passcode: 35024, until February 28, 2026.

About CGI

Founded in 1976, CGI is among the largest independent IT and business consulting services firms in the world. With 94,000 consultants and professionals across the globe, CGI delivers an end-to-end portfolio of capabilities, from strategic IT and business consulting to systems integration, managed IT and business process services and intellectual property solutions. CGI works with clients through a local relationship model complemented by a global delivery network that helps clients digitally transform their organizations and accelerate results. CGI Fiscal 2025 reported revenue is $15.91 billion and CGI shares are listed on the TSX (GIB.A) and the NYSE (GIB). Learn more at cgi.com.

Forward-looking information and statements

This press release contains "forward-looking information" within the meaning of Canadian securities laws and "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and other applicable United States safe harbours. All such forward-looking information and statements are made and disclosed in reliance upon the safe harbour provisions of applicable Canadian and United States securities laws. Forward-looking information and statements include all information and statements regarding CGI's intentions, plans, expectations, beliefs, objectives, future performance, and strategy, as well as any other information or statements that relate to future events or circumstances and which do not directly and exclusively relate to historical facts. Forward-looking information and statements often but not always use words such as "believe", "estimate", "expect", "intend", "anticipate", "foresee", "plan", "predict", "project", "aim", "seek", "strive", "potential", "continue", "target", "may", "might", "could", "should", and similar expressions and variations thereof. These information and statements are based on our perception of historic trends, current conditions and expected future developments, as well as other assumptions, both general and specific, that we believe are appropriate in the circumstances. Such information and statements are, however, by their very nature, subject to inherent risks and uncertainties, of which many are beyond the control of the Company, and which give rise to the possibility that actual results could differ materially from our expectations expressed in, or implied by, such forward-looking information or forward-looking statements. These risks and uncertainties include but are not restricted to: risks related to the market such as the level of business activity of our clients, which is affected by economic and political conditions, additional external risks (such as pandemics, armed conflict, climate-related issues, inflation, tariffs and/or trade wars) and our ability to negotiate new contracts; risks related to our industry such as competition and our ability to develop and expand our services to address emerging business demands and technology trends (such as artificial intelligence), to penetrate new markets, and to protect our intellectual property rights; risks related to our business such as risks associated with our growth strategy, including the integration of new operations, financial and operational risks inherent in worldwide operations, legal and operational risks inherent in contracting with government clients, foreign exchange risks, income tax laws and other tax programs, the termination, modification, delay or suspension of our contractual agreements, our expectations regarding future revenue resulting from bookings and backlog, our ability to attract and retain qualified employees, to negotiate favourable contractual terms, to deliver our services and to collect receivables, to disclose, manage and implement environmental, social and governance (ESG) initiatives and standards, and to achieve ESG commitments and targets, including without limitation, our commitment to reduce our carbon emissions, as well as the reputational and financial risks attendant to cybersecurity breaches and other incidents, including through the use of artificial intelligence, and financial risks such as liquidity needs and requirements, maintenance of financial ratios, our ability to declare and pay dividends, interest rate fluctuations and changes in creditworthiness and credit ratings; as well as other risks identified or incorporated by reference in this press release, in CGI's annual and quarterly MD&A and in other documents that we make public, including our filings with the Canadian Securities Administrators (on SEDAR+ at www.sedarplus.ca) and the U.S. Securities and Exchange Commission (on EDGAR at www.sec.gov). Unless otherwise stated, the forward-looking information and statements contained in this press release are made as of the date hereof and CGI disclaims any intention or obligation to publicly update or revise any forward-looking information or forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law. While we believe that our assumptions on which these forward-looking information and forward-looking statements are based were reasonable as at the date of this press release, readers are cautioned not to place undue reliance on these forward-looking information or statements. Furthermore, readers are reminded that forward-looking information and statements are presented for the sole purpose of assisting investors and others in understanding our objectives, strategic priorities and business outlook as well as our anticipated operating environment. Readers are cautioned that such information may not be appropriate for other purposes.

Further information on the risks that could cause our actual results to differ significantly from our current expectations may be found in the section titled Risk Environment of CGI's MD&A for the three months ended December 31, 2025 and 2024, which is incorporated by reference in this cautionary statement. We also caution readers that the risks described in the previously mentioned section and in other sections of CGI's MD&A for the three months ended December 31, 2025 and 2024, and in our other documents and filings are not the only ones that could affect us. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial could also have a material adverse effect on our financial position, financial performance, cash flows, business or reputation.

Non-GAAP and other key performance measures

Non-GAAP financial measures and ratios used in this press release: Constant currency revenue growth, adjusted earnings before interest and taxes, adjusted earnings before interest and taxes margin, adjusted net earnings, adjusted net earnings margin, adjusted diluted EPS, net debt, net debt to capitalization ratio, and return on invested capital (ROIC). CGI reports its financial results in accordance with IFRS Accounting Standards. However, management believes that these non-GAAP measures provide useful information to investors regarding the company's financial condition and results of operations as they provide additional measures of its performance. These measures do not have any standardized meaning prescribed by IFRS Accounting Standards and are therefore unlikely to be comparable to similar measures presented by other issuers and should be considered as supplemental in nature and not as a substitute for the related financial information prepared in accordance with IFRS Accounting Standards. Key performance measures used in this press release: cash provided by operating activities as a percentage of revenue, bookings, book-to-bill ratio, backlog, days sales outstanding (DSO), earnings before income taxes margin, and net earnings margin.

Below are reconciliations to the most comparable IFRS Accounting Standards financial measures and ratios, as applicable.

The descriptions of these non-GAAP measures and ratios and other key performance measures can be found on pages 3, 4, 5 and 6 of our Q1-F2026 MD&A which is posted on CGI's website, and filed with the Canadian Securities Administrators on SEDAR+ at www.sedarplus.ca and the U.S. Securities and Exchange Commission on EDGAR at www.sec.gov.

Q1-F2026

Reconciliation between constant currency revenue growth and growth.

	For the three months ended December 31,
	2025	2024	$	%
In thousands of CAD except for percentages
Total CGI revenue	4,078,355	3,785,245	293,110	7.7 %
Constant currency revenue growth	3.4 %
Foreign currency impact	4.3 %
Variation over previous period	7.7 %

Reconciliation between earnings before income taxes and adjusted earnings before interest and taxes.

	For the three months ended December 31,
	2025	% of revenue	2024	% of revenue
In thousands of CAD except for percentage and shares data
Earnings before income taxes	599,792	14.7 %	591,746	15.6 %
Plus the following items:
Restructuring, acquisition and related integration costs	26,245	0.6 %	13,364	0.4 %
Restructuring	—	— %	8,300	0.2 %
Acquisition and related integration costs	26,245	0.6 %	5,064	0.1 %
Net finance costs	29,076	0.7 %	6,612	0.2 %
Adjusted earnings before interest and taxes	655,113	16.1 %	611,722	16.2 %

Adjusted Net Earnings and Earnings per Share

	For the three months ended December 31,
	2025	2024	$	Change
In thousands of CAD except for percentage and shares data
Earnings before income taxes	599,792	591,746	8,046	1.4 %
Add back:
Restructuring, acquisition and related integration costs	26,245	13,364	12,881
Restructuring	—	8,300	(8,300)
Acquisition and related integration costs	26,245	5,064	21,181
Adjusted earnings before income taxes	626,037	605,110	20,927	3.5 %
Income tax expense	157,796	153,166	4,630	3.0 %
Effective tax rate	26.3 %	25.9 %
Add back:
Tax deduction on restructuring, acquisition and related integration costs	7,228	2,952	4,276
Impact on effective tax rate	0.1 %	(0.1 %)
Tax deduction on restructuring	—	2,189	(2,189)
Impact on effective tax rate	— %	— %
Tax deduction on acquisition and related integration costs	7,228	763	6,465
Impact on effective tax rate	0.1 %	(0.1 %)
Adjusted income tax expense	165,024	156,118	8,906	5.7 %
Adjusted effective tax rate	26.4 %	25.8 %
Adjusted net earnings	461,013	448,992	12,021	2.7 %
Adjusted net earnings margin	11.3 %	11.9 %
Weighted average number of shares outstanding
Class A subordinate voting shares and Class B shares (multiple voting) (basic)	215,952,333	225,191,270	(9,238,937)	(4.1 %)
Class A subordinate voting shares and Class B shares (multiple voting) (diluted)	217,664,071	228,241,476	(10,577,405)	(4.6 %)
Adjusted earnings per share (in dollars)
Basic	2.13	1.99	0.14	7.0 %
Diluted	2.12	1.97	0.15	7.6 %

Reconciliation between long-term debt and lease liabilities and net debt

As at December 31,	2025	2024
In thousands of CAD except for percentages
Reconciliation between long-term debt and lease liabilities1 and net debt:
Long-term debt and lease liabilities1	4,291,041	3,400,237
Minus the following items:
Cash and cash equivalents	836,369	1,801,250
Short-term investments	4,732	1,790
Long-term investments	26,755	27,353
Fair value of foreign currency derivative financial instruments related to debt	(26,049)	—
Net debt	3,449,234	1,569,844
Net debt to capitalization ratio	25.7 %	13.7 %
Return on invested capital	13.3 %	16.2 %
Days sales outstanding	37	38

1 As at December 31, 2025, long-term debt and lease liabilities were $3,593.3 million ($2,777.5 million as at December 31, 2024) and $697.8 million ($622.7 million as at December 31, 2024), respectively, including their current portions.

View original content:https://www.prnewswire.com/news-releases/cgi-reports-first-quarter-fiscal-2026-results-302671913.html

SOURCE CGI Inc.

FAQ

What did CGI (GIB) report for Q1-F2026 revenue and how did it change year-over-year?

Revenue was $4.08 billion, a 7.7% increase year-over-year. According to the company, constant currency revenue rose 3.4%, reflecting growth in modernization, managed services and AI-embedded solutions driving client demand.

How much cash did CGI (GIB) generate from operations in Q1-F2026?

CGI generated $871.9 million of cash from operations in Q1-F2026. According to the company, this represented 21.4% of revenue and was a record quarterly level, improving trailing twelve-month operating cash to $2.46 billion.

What is CGI's (GIB) backlog and book-to-bill ratio as of Q1-F2026?

Backlog was $31.32 billion, about 1.9x annual revenue, with bookings of $4.47 billion. According to the company, the book-to-bill ratio for the quarter was 109.5% (110.4% on a trailing twelve-month basis).

How did CGI's (GIB) balance sheet change in Q1-F2026, including debt and cash?

Long-term debt and leases rose to $4.29 billion and net debt to $3.45 billion. According to the company, cash and cash equivalents declined to $836.4 million, partly reflecting note issuance and share repurchases.

What capital actions did CGI (GIB) take in Q1-F2026 and what dividend was declared?

CGI purchased $576.6 million of shares and invested $105.7 million in acquisitions. According to the company, the board declared a quarterly cash dividend of $0.17 per share, payable March 20, 2026.