CGI Reports Strong First Quarter Results for Fiscal 2026 with Revenue Growth and High Cash Generation

CGI's First Quarter Fiscal 2026 Overview

CGI Inc. has reported its financial outcomes for the first quarter of Fiscal 2026, showcasing strong performance metrics that underscore the company’s solid positioning in the IT and business consulting sectors. Total revenue reached an impressive $4.08 billion, marking a 7.7% increase compared to the previous year. When factoring out foreign currency variations, this growth maintained a 3.4% rate in constant currency.

Earnings Performance

In terms of earnings, CGI recorded earnings before income taxes of $599.8 million, which reflects a slight year-over-year increase of 1.4%. The margin slightly decreased to 14.7% from 15.6%, which the company attributes to various costs related to acquisitions and integration.

Adjusted earnings before interest and taxes (EBIT) also saw a healthy rise of 7.1%, landing at $655.1 million, corresponding to an EBIT margin of 16.1%. This strong performance further demonstrates the effectiveness of CGI’s operational strategies and its ability to optimize costs while maximizing output.

Net Earnings and Cash Generation

Net earnings were reported at $442.0 million, resulting in a margin of 10.8%. This represents a modest improvement from $438.6 million recorded in the same quarter of the prior year. Diluted earnings per share (EPS) rose to $2.03, a 5.7% increase from $1.92 in the previous year’s first quarter.

Moreover, CGI’s operational efficiency is reflected in the cash provided by operating activities, amounting to $871.9 million, which is 21.4% of the total revenue. This performance stands out as record-high cash generation, demonstrating the company’s ability to convert sales into cash effectively.

Bookings and Backlog

CGI reported significant new business activity, with bookings reaching $4.47 billion, resulting in a book-to-bill ratio of 109.5%. This indicates that the demand for CGI’s services continues to grow robustly. As of December 31, 2025, the company managed to maintain a backlog of contracts worth $31.32 billion, which represents nearly 1.9 times its annual revenue, a solid assurance of future revenue streams.

Investment in Growth

In alignment with its growth strategy, CGI invested $86.5 million back into its business and made net acquisitions amounting to $105.7 million. The company reaffirmed its commitment to shareholder returns by distributing $37 million in dividends while executing a Normal Course Issuer Bid, under which it plans to purchase up to 18.9 million of its subordinate voting shares over the coming 12 months.

Looking Ahead

As CGI celebrates its 50th anniversary, President and CEO François Boulanger emphasized the firm’s dedication to the modernization of services and innovative managed solutions, integrating advanced AI technology to address evolving client needs. Boulanger noted that this quarter’s results reflect continued client investment in modernization, a testament to CGI's ability to adapt and lead in the digital transformation landscape.

Overall, CGI’s robust first-quarter results set a promising tone for the fiscal year ahead, promising an exciting path as it leverages its strengths and expands its market presence.