CGI Reports Strong Fourth Quarter and Fiscal 2025 Financial Results with Increased Dividends

CGI Reports Strong Financial Results for Q4 and Fiscal 2025

CGI Inc., a leading global IT and business consulting services firm, recently announced its financial results for the fourth quarter and the entire fiscal year 2025. The company reported a remarkable revenue of $4.01 billion for Q4, reflecting a 9.7% increase compared to the previous year, and achieved adjusted earnings before interest and taxes (EBIT) of $667.4 million, marking an 11.2% year-over-year growth. These results were bolstered by CGI's commitment to operational excellence and its strategic focus on AI-driven managed services.

Key Highlights from Q4 2025

1. Revenue Growth: CGI experienced a revenue surge to $4.01 billion, up from $3.66 billion in Q4 2024. This represents a 9.7% increase year-over-year, with constant currency revenue growth of 5.5%.
2. Earnings Before Tax: The earnings before income taxes stood at $516.2 million, although this was down from $592.4 million in the same period last year, leading to a margin of 12.9%.
3. Adjusted Net Earnings: Adjusted net earnings reached $471.7 million, translating to a margin of 11.8%, with diluted earnings per share (EPS) growing by 10.9% to $2.13.
4. Share Buyback and Dividends: In Q4, CGI invested $490.8 million in buying back Class A subordinate voting shares, alongside declaring a quarterly cash dividend of $0.17 per share, a significant 13% increase from the prior quarter.
5. Robust Bookings: The company secured bookings worth $4.79 billion during the quarter, achieving a book-to-bill ratio of 119.2%, reflecting its ability to convert sales into revenue effectively.
6. Cash Flow: Operational activities generated $663 million, representing 16.5% of total revenue, underpinning a solid cash flow position.

Fiscal 2025 Financial Overview

For the full fiscal year 2025, CGI reported total revenue of $15.91 billion, up by 8.4%, with a constant currency growth of 4.6%. Net earnings totaled $1.66 billion, slightly down by 2.0% year-over-year, but dilute EPS climbed marginally by 0.5% to $7.35. This fiscal year also highlighted an increase in backlog to $31.45 billion, effectively doubling the annual revenue and providing a strong pipeline for future projects.

Strategic Focus and Future Outlook

CGI's President and CEO, François Boulanger, emphasized the company's strategic initiatives driving growth: "Our teams are dedicated to using cutting-edge technology and maintaining strong client relationships to deliver exceptional business outcomes. With nearly a 30% growth in new opportunities, we are well-positioned to capitalize on the evolving market landscape."

CGI's commitment to innovation and client partnership has positioned the firm as a trusted advisor in IT services, particularly in leveraging artificial intelligence and cloud solutions to enhance productivity and operational efficiency.

Conclusion

CGI's strong Q4 and fiscal 2025 results underscore its resilience and strategic direction amidst a competitive market. With continuous investments in technology and a focus on quality service delivery, the company is set to drive further growth and value creation for stakeholders in the upcoming years. Shareholders can look forward to benefiting from increased dividends and the company's promising growth trajectory.