CGI's Board of Directors Authorizes Renewal of NCIB for Share Buyback Program
CGI, a notable player in the IT consulting arena, has announced a significant step in its ongoing efforts to enhance shareholder value through the authorization of a renewed Normal Course Issuer Bid (NCIB). The renewal, which is pending approval from the Toronto Stock Exchange (TSX), represents the company's commitment to responsible capital management and its belief in the long-term value of its shares.
The Normal Course Issuer Bid (NCIB) allows CGI to repurchase its Class A subordinate voting shares from the market. The company's Board of Directors and management have identified this move as a prudent allocation of resources, reflecting their belief that repurchasing shares will not only improve earnings per share but also align with their dedication to shareholder interests. Specifically, as of January 23, 2026, there are approximately 190 million Class A shares outstanding, with a substantial public float.
Under the proposed terms of the NCIB, CGI intends to repurchase up to 18,975,360 Class A shares, which constitutes about 10% of the public float as calculated by the TSX. This buyback will be executed through open market transactions and is designed to be flexible, allowing the company to adapt its purchasing strategy as market conditions evolve.
The official commencement date for repurchases under the renewed NCIB is set for February 6, 2026, and these activities will continue until February 5, 2027, unless the company exhausts its allowable buyback limit before that date. The average daily trading volume of Class A shares on the TSX reported was around 460,867 shares during the previous six months, meaning the company will limit daily buybacks to 25% of this average volume, translating to approximately 115,216 shares per day.
Looking back, CGI’s previous NCIB, which began on February 6, 2025, permitted the purchase of about 20.2 million shares, of which over 12 million have already been repurchased at an average price of $133.10 per share. This demonstrates the company’s proactive strategy in capital management and confidence in its financial health, investing over $1.7 billion in share repurchase thus far.
Through the systematic approach of repurchasing shares, CGI aims to signal to the market its commitment to enhancing shareholder returns. Additionally, the implementation of an automatic share purchase plan through a designated broker underscores the company’s strategic initiative to allow for share repurchases even during self-imposed blackout periods, where trading restrictions may typically be applied.
CGI's renewal of its Normal Course Issuer Bid showcases its ongoing dedication to providing value to its shareholders while maintaining a flexible response to market dynamics. As the company integrates innovations and adapts operational strategies, this buyback program stands as a testament to its solid business model and its management's commitment to securing long-term financial growth amidst evolving industry landscapes. With 94,000 professionals globally and robust fiscal reports, CGI continues to position itself as a leader in IT and business consulting services, aiming for sustained success for itself and its investors.
Understanding the NCIB
The Normal Course Issuer Bid (NCIB) allows CGI to repurchase its Class A subordinate voting shares from the market. The company's Board of Directors and management have identified this move as a prudent allocation of resources, reflecting their belief that repurchasing shares will not only improve earnings per share but also align with their dedication to shareholder interests. Specifically, as of January 23, 2026, there are approximately 190 million Class A shares outstanding, with a substantial public float.
Under the proposed terms of the NCIB, CGI intends to repurchase up to 18,975,360 Class A shares, which constitutes about 10% of the public float as calculated by the TSX. This buyback will be executed through open market transactions and is designed to be flexible, allowing the company to adapt its purchasing strategy as market conditions evolve.
Planned Implementation Timeline
The official commencement date for repurchases under the renewed NCIB is set for February 6, 2026, and these activities will continue until February 5, 2027, unless the company exhausts its allowable buyback limit before that date. The average daily trading volume of Class A shares on the TSX reported was around 460,867 shares during the previous six months, meaning the company will limit daily buybacks to 25% of this average volume, translating to approximately 115,216 shares per day.
Historical Context and Future Outlook
Looking back, CGI’s previous NCIB, which began on February 6, 2025, permitted the purchase of about 20.2 million shares, of which over 12 million have already been repurchased at an average price of $133.10 per share. This demonstrates the company’s proactive strategy in capital management and confidence in its financial health, investing over $1.7 billion in share repurchase thus far.
CGI's Commitment to Shareholders
Through the systematic approach of repurchasing shares, CGI aims to signal to the market its commitment to enhancing shareholder returns. Additionally, the implementation of an automatic share purchase plan through a designated broker underscores the company’s strategic initiative to allow for share repurchases even during self-imposed blackout periods, where trading restrictions may typically be applied.
Conclusion
CGI's renewal of its Normal Course Issuer Bid showcases its ongoing dedication to providing value to its shareholders while maintaining a flexible response to market dynamics. As the company integrates innovations and adapts operational strategies, this buyback program stands as a testament to its solid business model and its management's commitment to securing long-term financial growth amidst evolving industry landscapes. With 94,000 professionals globally and robust fiscal reports, CGI continues to position itself as a leader in IT and business consulting services, aiming for sustained success for itself and its investors.
Topics Financial Services & Investing）
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