CGI Inc. (GIB)

CGI reported third-quarter fiscal 2026 revenue of C$4.19 billion on 29 July 2026, up 2.5 percent from a year earlier and 1.3 percent before currency effects 1.

Net earnings were C$465.2 million, or C$2.23 per diluted share, against C$408.6 million and C$1.82 a year earlier 19.

Management said the quarter reflected recent acquisitions, growth in government work and demand at its Asia Pacific delivery centers, partly offset by lower demand in manufacturing, retail and distribution and in financial services 2.

Backlog, the value of signed work not yet delivered, stood at C$31.79 billion on 30 June 2026, or 1.9 times annual revenue 1.

On 12 May 2026 the board named Tim Hurlebaus chief executive in place of François Boulanger, who retired after about a year and a half in the post 56.

The Canadian Press tied the change to concerns about the legacy IT consulting sector's outlook, which have grown with fears of disruption from artificial intelligence 6.

CGI was founded in 1976, incorporated on 29 September 1981 and became a public company on 17 December 1986 through an initial public offering of its Class A shares 4.

Its growth strategy is called Build and Buy: win, renew and extend contracts and sign large managed services deals, while buying metro market firms and, now and then, large transformational companies 3.

Revenue was C$14,296.4 million in fiscal 2023, C$14,676.2 million in fiscal 2024 and C$15,912.7 million in fiscal 2025 3.

Growth was 11.1 percent in fiscal 2023, 2.7 percent in fiscal 2024 and 8.4 percent in fiscal 2025 3.

In fiscal 2023 CGI started a cost optimization program to improve efficiency through automation and global delivery and to rightsize its real estate 3. It finished the program on 31 March 2024 at a total cost of C$100.0 million 3.

Fiscal 2025 was the year of the deals: Daugherty Systems in the United States on 13 December 2024 for C$343.0 million, and BJSS in the United Kingdom on 24 February 2025 for C$1,255.6 million 3.

It also bought Novatec in Germany on 20 March 2025, Momentum in Quebec City on 24 March 2025 and Apside in France on 28 August 2025 for C$229.9 million 3.

Consultancy.uk reported on 29 January 2025 that BJSS, founded in 1993, posted revenues of £300.7 million in its latest public annual report, for the period to April 2023 7.

The Canadian Press reported on 31 March 2025 that Apside had more than 300 clients and 28 offices in six countries, and that financial terms were not immediately available 8.

Fiscal 2025 revenue rose 8.4 percent, or 4.6 percent before currency 3. CGI put this down mainly to acquisitions and organic growth in government and financial services, partly offset by lower demand in MRD and in communications and utilities 3.

A restructuring program in Continental Europe, completed in fiscal 2025, cost C$196.8 million, of which C$190.0 million was for terminations of employment 3.

Earnings before income taxes were C$2,242.2 million in fiscal 2025 against C$2,291.0 million in fiscal 2024 3.

CGI began paying a quarterly dividend in fiscal 2025, C$0.15 a share, with nothing paid in fiscal 2024, and it bought back and cancelled 8,861,543 Class A shares for C$1,258.5 million that year 3.

What CGI sells

CGI sells three kinds of work: business and IT consulting with systems integration, managed IT and business process services, and its own software platforms, called intellectual property solutions 3.

Managed services means CGI runs all or part of a client's IT, and it offers CGI DigiOps, which it describes as an AI-powered delivery approach that can deliver sustainable double-digit efficiency improvements 3.

Its targeted industries are financial services, government, manufacturing, retail and distribution, communications and utilities, and health 3.

Where the revenue comes from

CGI is run as nine segments by where the work is delivered 2. The largest for the nine months to 30 June 2026 were Western and Southern Europe at C$2,270.1 million, U.S. Commercial and State Government at C$1,846.7 million and U.K. and Australia at C$1,705.5 million 2.

Canada brought in C$1,568.8 million, U.S. Federal C$1,579.8 million, Scandinavia, Northwest and Central-East Europe C$1,396.3 million, Asia Pacific C$753.5 million, Finland, Poland and Baltics C$739.6 million and Germany C$672.2 million over the same nine months 2.

People and leadership

Tim Hurlebaus has been President and Chief Executive Officer since 12 May 2026, after two years as President and Chief Operating Officer for the United States, United Kingdom and Australia 5.

Julie Godin is Executive Chair of the Board and Serge Godin, the founder, is Co-Chair 5.

CGI had approximately 94,000 consultants and professionals on 30 June 2026, and 87.5 percent of its people were shareholders on 30 September 2025 14.

Rivals and current pressures

The annual report names no rivals, describing competition as local specialists, government pure-plays and global business consulting and IT services providers 3.

In the U.S. Federal segment, nine-month revenue fell 7.1 percent, which CGI attributed to U.S. federal government efficiency initiatives and a shutdown, partly offset by net new projects from recent contract awards 2.

The U.S. federal government, with its agencies, made up 12.7 percent of revenue over the nine months to 30 June 2026 against 14.3 percent a year earlier 2.

Boulanger told analysts on 29 April that stand-alone AI tools "are not a substitute for enterprise IT", while the Canadian Press described investor doubt about AI's effect on consulting 6.

The umbrella, in words

The brand is CGI, and its principal subsidiaries, all wholly owned, include CGI Federal Inc., CGI Technologies and Solutions Inc., CGI IT UK Limited, CGI France SAS, CGI Suomi Oy and CGI Sverige AB 4.

Stakes: CGI owns all the shares of the firms it bought most recently, namely Online Business Systems on 2 December 2025, Comarch Polska SA on 22 December 2025 and Stratfield, LLC on 2 April 2026 2.

Its executive and registered offices are at 1350 René-Lévesque Boulevard West in Montreal 4.

Serge Godin, the founder, controls the company: Class A shares carry one vote and Class B shares ten, and on 9 December 2025 the Class B shares were 55.60 percent of all votes 4.

CGI says it will continue to be a consolidator in the IT and business consulting services industry 3.

At 30 September 2025 the company expected about C$12.0 billion of its backlog to turn into revenue within twelve months and C$10.5 billion within one to three years 3. It expected C$4.6 billion within three to five years and C$4.4 billion after that 3.

The company expects its adjusted effective tax rate to rise to between 26.0 and 27.0 percent in fiscal 2026, mainly because of a temporary tax increase in France 3.

Its share buyback was renewed on 27 January 2026 for up to 18,975,360 Class A shares, and it can run until no later than 5 February 2027 2.

On 29 July 2026 Hurlebaus said CGI remains "positioned to continue the profitable growth momentum" it saw in the quarter, and that clients want to operate securely with AI embedded at enterprise scale 1.