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CGI Reports Strong Q3 Fiscal 2025 Results

On July 30, 2025, CGI Inc. released compelling results for the third quarter of Fiscal 2025, indicating robust financial health amidst a challenging economic landscape. With a total revenue of CAD 4.09 billion, this signifies an impressive 11.4% year-over-year growth, showcasing the company's resilience and strategic capital deployment. Notably, when adjustments for foreign currency fluctuations are made, the revenue growth is a solid 7.0%.

Key Financial Highlights

• - Revenue: $4.09 billion, up from $3.67 billion in Q3 of the previous year.
• - Earnings Before Income Taxes: $551.6 million, reflecting a decrease of 7.1%, resulting in a margin of 13.5%.
• - Adjusted Earnings Before Interest and Taxes: Increased by 10.5% to $666.1 million, with a margin of 16.3%.
• - Net Earnings: Reported at $408.6 million, down 7.2%, leading to a margin of 10.0%.
• - Diluted Earnings per Share: Decreased to $1.82 from $1.91 last year, a decline of 4.7%.

While there has been a dip in earnings due to cost pressures linked to restructuring and acquisition integration costs, the adjusted metrics show a positive trend. The adjusted net earnings stood at $470.1 million, up 6.8%, translating into a diluted adjusted EPS of $2.10, reflecting a 9.9% year-over-year increase.

Focus on AI and Market Adaptability

François Boulanger, President and CEO, attributed this growth partly to CGI's focus on artificial intelligence. The company is positioning itself as a trusted partner for digital transformation, leveraging AI technologies to navigate complex business challenges. He noted, "Our team remains focused on proactively managing the fundamentals of our business to deepen our resilience and continued profitable growth."

In this quarter, CGI recorded $4.15 billion in bookings, which translates into a book-to-bill ratio of 101.4%. This is an encouraging sign for future revenues, with a total backlog reaching a remarkable $30.58 billion, which is double the annual revenue, further indicating a strong demand for CGI's services.

Strategic Investments

CGI has demonstrated its commitment to long-term growth by reinvesting $105.1 million back into the business. Additionally, it has executed a significant stock buyback program, purchasing $286.2 million worth of its Class A subordinate voting shares. The firm continues to reward shareholders, announcing a quarterly cash dividend of $0.15 per share, payable on September 19, 2025.

Looking Ahead

While CGI faces challenges related to restructuring costing about $100 million, it remains committed to improving profitability as stable market conditions return. With a focus on further enhancing its AI capabilities and an ongoing commitment to its business fundamentals, CGI is set to continue its positive trajectory in the upcoming quarters.

CGI, founded in 1976 and now employing approximately 93,000 professionals globally, remains one of the largest independent IT and business consulting firms. As it evolves, CGI maintains a focus on delivering comprehensive solutions that assist clients in their digital transformations and enhance overall business outcomes.

For more detailed insights into its financial performance, investors can access the complete financial statements and supplementary materials on the CGI website.