CGI Group (NYSE:GIB) Posts Earnings Results, Beats Estimates By $0.01 EPS

CGI Group (NYSE:GIB) (TSE:GIB.A) posted its quarterly earnings results on Wednesday. The technology company reported $1.65 earnings per share for the quarter, topping the consensus estimate of $1.64 by $0.01, Zacks reports. The company had revenue of $2.91 billion during the quarter, compared to the consensus estimate of $2.90 billion. CGI Group had a return on equity of 18.86% and a net margin of 10.94%.

Here are the key takeaways from CGI Group’s conference call:

• Bookings and backlog remained strong: Q4 bookings were $4.5 billion, a 109% book-to-bill ratio, and contracted backlog reached $32.1 billion, or 1.9 times annual revenue. More than $12 billion is contracted for delivery over the next 12 months.
• Profitability and cash generation improved: Adjusted diluted EPS rose 8.5% year over year to $2.31, while full-year cash from operations increased 11% to $2.5 billion. CGI also raised its quarterly dividend 8.8%.
• Management sees opportunities for further growth: The company reported improving revenue momentum, stronger U.S. federal performance, and a pipeline that grew across core services; it expects continued improvement in fiscal 2027. Executives also cited AI-enabled work and data sovereignty needs as demand opportunities.
• Underlying revenue growth remained modest: Q4 revenue increased 2.5% in constant currency, with acquisitions contributing about 2.4 percentage points. Management also faced questions about weaker new-client bookings, though it pointed to a record backlog and variability in project timing.

CGI Group Trading Up 0.5%

Shares of NYSE:GIB traded up $0.40 during trading on Friday, reaching $82.21. 34,487 shares of the company were exchanged, compared to its average volume of 470,779. CGI Group has a 12-month low of $59.63 and a 12-month high of $95.20. The firm has a market capitalization of $17.02 billion, a PE ratio of 13.31 and a beta of 0.42. The company has a debt-to-equity ratio of 0.28, a current ratio of 0.93 and a quick ratio of 0.66. The business’s fifty day simple moving average is $74.54 and its 200-day simple moving average is $72.14.

CGI Group Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, December 18th. Stockholders of record on Friday, November 27th will be paid a dividend of C$0.18 per share. This is a positive change from CGI Group’s previous quarterly dividend of C$0.17. This represents a $0.74 dividend on an annualized basis and a dividend yield of 0.9%. The ex-dividend date of this dividend is Friday, November 27th. CGI Group’s payout ratio is currently 8.23%.

Wall Street Analysts Forecast Growth

Several equities analysts have recently issued reports on GIB shares. Weiss Ratings raised CGI Group from a “sell (d+)” rating to a “hold (c-)” rating in a research note on Wednesday, October 21st. TD Securities lowered shares of CGI Group from a “buy” rating to a “hold” rating in a research note on Thursday, July 23rd. Finally, Royal Bank Of Canada reiterated a “sector perform” rating and set a $100.00 target price on shares of CGI Group in a report on Tuesday, October 6th. Six analysts have rated the stock with a Hold rating. Based on data from MarketBeat, CGI Group presently has an average rating of “Hold” and an average target price of $85.00.

About CGI Group

CGI Inc., formerly known as CGI Group, is a Canadian information technology and business consulting company founded in 1976 in Montréal. It works with businesses and government organizations to plan, build and operate technology and business systems. The company provides IT and business consulting, systems integration, application development and maintenance, managed IT services, and business process services. Its work also covers areas such as cloud computing, cybersecurity, data analytics and digital transformation.