CGI reports third quarter Fiscal 2026 results
Rhea-AI Summary
CGI (NYSE:GIB) reported Q3 Fiscal 2026 results with revenue of $4.19 billion, up 2.5% year-over-year, or 1.3% in constant currency. Earnings before income taxes rose 14.9% to $633.9 million for a 15.1% margin, while adjusted EBIT reached $681.7 million with a 16.3% margin.
Net earnings were $465.2 million (margin 11.1%), and diluted EPS increased 22.5% to $2.23. Adjusted net earnings were $478.3 million with adjusted diluted EPS of $2.29, up 9.0%. Cash from operations was $604.5 million (14.4% of revenue), and bookings were $4.20 billion, producing a 100.1% book-to-bill and a $31.79 billion backlog (1.9x annual revenue).
The company invested $105.0 million in its business, spent $49.6 million on acquisitions and $412.9 million to repurchase 4,427,600 Class A shares. Net debt rose to $3.68 billion, with a 26.6% net debt-to-capitalization ratio. CGI declared a quarterly dividend of $0.17 per share, payable September 18, 2026.
Positive
- Revenue growth of 2.5% year-over-year to $4.19 billion
- Diluted EPS up 22.5% year-over-year to $2.23
- Net earnings increased 13.8% to $465.2 million; margin up 110 bps to 11.1%
- Cash from operations $604.5 million, 14.4% of revenue; TTM $2.59 billion, 15.8% of revenue
- Bookings $4.20 billion; trailing twelve-month book-to-bill 108.1% and backlog $31.79 billion (1.9x revenue)
- Shareholder returns $412.9 million for repurchase of 4,427,600 shares plus $35.7 million in dividends
Negative
- Constant currency revenue growth slowed to 1.3% from 7.0% a year earlier
- Adjusted net earnings margin edged down 10 bps to 11.4%
- Net debt increased to $3.68 billion from $3.12 billion; net debt-to-capitalization up 320 bps to 26.6%
- Cash and cash equivalents declined by $504.6 million year-over-year to $625.6 million
- Return on invested capital (ROIC) decreased 120 bps year-over-year to 13.4%
Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Jul 22 | Earnings date notice | Neutral | -1.5% | Third-quarter results release and conference call scheduled for July 29 |
| Jul 20 | AI partnership update | Positive | +0.2% | Databricks specializations announced for public sector and generative AI |
| Jul 09 | Partnership launch | Positive | +0.9% | Massachusetts statewide financial management system launched under the MA BEST Program |
| Jun 30 | AI partnership certification | Positive | +1.3% | CGI Advantage ERP received Microsoft's certified software partner designation |
| Jun 24 | Leadership change | Positive | +1.3% | Alisa Bearfield appointed President of CGI Federal effective October 1 |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
CGI's four recent positive corporate announcements were followed by gains, while its results-date scheduling notice was followed by a decline.
Key Terms
diluted eps financial
constant currency financial
book-to-bill ratio financial
net debt-to-capitalization ratio financial
normal course issuer bid financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Stock Market Symbols
GIB.A (TSX)
GIB (NYSE)
cgi.com/newsroom
Revenue up
Q3-F2026 performance highlights
- Revenue of
$4.19 billion 2.5% year-over-year or1.3% year-over-year in constant currency1; - Earnings before income taxes of
$633 14.9% year-over-year, for a margin1 of15.1% ; - Adjusted earnings before interest and taxes1,2 of
$681 2.3% year-over-year, for a margin1 of16.3% ; - Net earnings of
$465 13.8% year-over-year, for a margin1 of11.1% , and diluted EPS of$2.23 22.5% year-over-year; - Adjusted net earnings1,2 of
$478 1.7% year-over-year, for a margin1 of11.4% , and adjusted diluted EPS1,2 of$2.29 9.0% year-over-year; - Returned
$35.7 million $0.17 - Cash provided by operating activities of
$604.5 million 14.4% of revenue1 and$2 15.8% of revenue1 on a trailing twelve month basis; - Bookings1 of
$4.20 billion 100.1% or108.1% on a trailing twelve month basis1; and - Backlog1 of
$31.79 billion
Note: All figures in Canadian dollars. Q3-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
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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, book-to-bill ratio trailing twelve months 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 | Q3-F2026 adjusted for |
Q3-F2026 results
"CGI's results in the quarter continue to reflect our positioning to meet client demand, as well as our operational excellence—both of which contributed to revenue growth, EPS accretion, and strong cash generation," said Tim Hurlebaus, President and Chief Executive Officer. "Strong government sector awards contributed to a
"Across every industry, clients are increasingly focused on how to securely operate with AI embedded at enterprise scale," continued Mr. Hurlebaus. "Importantly, clients recognize that long-term business and mission value now depends as much on modern data, cybersecurity and organizational readiness as it does on AI innovation. This shift continues to create new opportunities for CGI to partner with clients to drive efficiency, modernization and transformation—all while preserving clients' flexibility to adapt as technologies evolve."
For the third quarter of Fiscal 2026, the Company reported revenue of
Earnings before income taxes were
Adjusted earnings before interest and taxes1 were
Net earnings were
Adjusted net earnings1 were
During the third quarter Fiscal 2026, we returned
Cash provided by operating activities was
Bookings were
As of June 30, 2026, the number of CGI consultants and professionals worldwide stood at approximately 94,000.
During the third quarter of Fiscal 2026, the Company invested
As at June 30, 2026, long-term debt and lease liabilities, including both their current and long-term portions, were
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1 | Q3-F2026 adjusted for |
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 | Q3-F2026 | Q3-F2025 | Change |
In millions of Canadian dollars except earnings per share and where noted | |||
Revenue | 4,193.0 | 4,090.2 | 102.8 |
Year-over-year revenue growth | 2.5 % | 11.4 % | (890 bps) |
Constant currency revenue growth | 1.3 % | 7.0 % | (570 bps) |
Earnings before income taxes | 633.9 | 551.6 | 82.3 |
Margin % | 15.1 % | 13.5 % | 160 bps |
Adjusted earnings before interest and taxes1 | 681.7 | 666.1 | 15.6 |
Margin % | 16.3 % | 16.3 % | 0 bps |
Net earnings | 465.2 | 408.6 | 56.6 |
Margin % | 11.1 % | 10.0 % | 110 bps |
Adjusted net earnings1 | 478.3 | 470.1 | 8.2 |
Margin % | 11.4 % | 11.5 % | (10 bps) |
Diluted EPS | 2.23 | 1.82 | 0.41 |
Adjusted diluted EPS1 | 2.29 | 2.10 | 0.19 |
Weighted average number of outstanding shares (diluted) In millions of shares | 208.9 | 224.4 | (15.5) |
Net finance costs | 30.5 | 30.9 | (0.4) |
Cash and cash equivalents | 625.6 | 1,130.2 | (504.6) |
Long-term debt and lease liabilities2 | 4,337.1 | 4,244.1 | 93.0 |
Net debt | 3,684.0 | 3,115.8 | 568.2 |
Net debt to capitalization ratio | 26.6 % | 23.4 % | 320 bps |
Cash provided by operating activities | 604.5 | 486.6 | 117.9 |
As a percentage of revenue | 14.4 % | 11.9 % | 250 bps |
Days sales outstanding (DSO)3 | 43 | 43 | 0 |
Purchase for cancellation of Class A subordinate voting shares and related tax | 412.9 | 286.2 | 126.7 |
Return on invested capital (ROIC)3 | 13.4 % | 14.6 % | (120 bps) |
Bookings | 4,199 | 4,146 | 53 |
Backlog | 31,794 | 30,580 | 1,214 |
To access the financial statements – click here
To access the MD&A – click here
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1 | Q3-F2026 adjusted for |
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. |
Declaration of Dividend
On July 28, 2026, our Board of Directors approved a quarterly cash dividend of
Q3-F2026 results conference call
Management will host a conference call this morning at 9:00 a.m. (EDT) to discuss results. Participants may access the call by dialing +1-800-717-1738 Conference ID: 69190 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: 69190, until August 29, 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
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 and nine months ended June 30, 2026 and 2025, 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 and nine months ended June 30, 2026 and 2025, 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, book-to-bill ratio trailing twelve months, 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 Q3-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.
Q3-F2026
Reconciliation between constant currency revenue growth and growth.
For the three months ended June 30, | For the nine months ended June 30, | |||||
2026 | 2025 | % | 2026 | 2025 | % | |
In thousands of CAD except for percentages | ||||||
Total CGI revenue | 4,193,022 | 4,090,182 | 2.5 % | 12,427,546 | 11,898,836 | 4.4 % |
Constant currency revenue growth | 1.3 % | 2.1 % | ||||
Foreign currency impact | 1.2 % | 2.3 % | ||||
Variation over previous period | 2.5 % | 4.4 % | ||||
Reconciliation between earnings before income taxes and adjusted earnings before interest and taxes.
For the three months ended June 30, | For the nine months ended June 30, | |||||||
2026 | % of | 2025 | % of | 2026 | % of | 2025 | % of | |
In thousands of CAD except for percentages | ||||||||
Earnings before income taxes | 633,924 | 15.1 % | 551,587 | 13.5 % | 1,851,385 | 14.9 % | 1,725,949 | 14.5 % |
Add back: | ||||||||
Restructuring | — | — % | 45,547 | 1.1 % | — | — % | 98,000 | 0.8 % |
Acquisition and related integration costs | 17,214 | 0.4 % | 38,148 | 0.9 % | 84,363 | 0.7 % | 65,471 | 0.6 % |
Net finance costs | 30,538 | 0.7 % | 30,861 | 0.8 % | 92,649 | 0.7 % | 54,104 | 0.5 % |
Adjusted earnings before interest and taxes | 681,676 | 16.3 % | 666,143 | 16.3 % | 2,028,397 | 16.3 % | 1,943,524 | 16.3 % |
Adjusted Net Earnings and Earnings per Share
For the three months ended June 30, | For the nine months ended June 30, | |||||
2026 | 2025 | Change | 2026 | 2025 | Change | |
In thousands of CAD except for percentages and shares data | ||||||
Earnings before income taxes | 633,924 | 551,587 | 14.9 % | 1,851,385 | 1,725,949 | 7.3 % |
Add back: | ||||||
Restructuring | — | 45,547 | — | 98,000 | ||
Acquisition and related integration costs | 17,214 | 38,148 | 84,363 | 65,471 | ||
Adjusted earnings before income taxes | 651,138 | 635,282 | 2.5 % | 1,935,748 | 1,889,420 | 2.5 % |
Income tax expense | 168,723 | 142,975 | 18.0 % | 499,468 | 449,019 | 11.2 % |
Effective tax rate | 26.6 % | 25.9 % | 27.0 % | 26.0 % | ||
Add back: | ||||||
Tax deduction on restructuring | — | 12,397 | — | 26,741 | ||
Impact on effective tax rate | — % | 0.1 % | — % | 0.1 % | ||
Tax deduction on acquisition and related integration costs | 4,147 | 9,802 | 13,606 | 13,879 | ||
Impact on effective tax rate | (0.1 %) | — % | (0.5 %) | (0.2 %) | ||
Adjusted income tax expense | 172,870 | 165,174 | 4.7 % | 513,074 | 489,639 | 4.8 % |
Adjusted effective tax rate | 26.5 % | 26.0 % | 26.5 % | 25.9 % | ||
Adjusted net earnings | 478,268 | 470,108 | 1.7 % | 1,422,674 | 1,399,781 | 1.6 % |
Adjusted net earnings margin | 11.4 % | 11.5 % | 11.4 % | 11.8 % | ||
Weighted average number of shares outstanding | ||||||
Class A subordinate voting shares and Class B shares (multiple voting) (basic) | 207,765,623 | 221,781,407 | (6.3 %) | 211,864,387 | 223,752,383 | (5.3 %) |
Class A subordinate voting shares and Class B shares (multiple voting) (diluted) | 208,850,248 | 224,356,551 | (6.9 %) | 213,287,367 | 226,568,058 | (5.9 %) |
Adjusted earnings per share (in dollars) | ||||||
Basic | 2.30 | 2.12 | 8.5 % | 6.72 | 6.26 | 7.3 % |
Diluted | 2.29 | 2.10 | 9.0 % | 6.67 | 6.18 | 7.9 % |
Reconciliation between long-term debt and lease liabilities and net debt
As at June 30, | 2026 | 2025 |
In thousands of CAD except for percentages | ||
Reconciliation between long-term debt and lease liabilities1 and net debt: | ||
Long-term debt and lease liabilities1 | 4,337,091 | 4,244,106 |
Minus the following items: | ||
Cash and cash equivalents | 625,634 | 1,130,220 |
Short-term investments | 7,790 | 4,568 |
Long-term investments | 27,733 | 27,676 |
Fair value of foreign currency derivative financial instruments related to debt | (8,066) | (34,154) |
Net debt | 3,684,000 | 3,115,796 |
Net debt to capitalization ratio | 26.6 % | 23.4 % |
Return on invested capital | 13.4 % | 14.6 % |
Days sales outstanding | 43 | 43 |
1 | As at June 30, 2026, long-term debt and lease liabilities were |
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SOURCE CGI Inc.