CGI INC (GIB): Financial results for FY2026
CGI INC (GIB) furnished an SEC Form 6-K — earnings release. GLOBAL PRESS RELEASE Stock Market Symbols GIB.A (TSX) GIB (NYSE) cgi.com/newsroom CGI reports fourth quarter and Fiscal 2026 results Fourth quarter net earnings up 20.8% and revenue up 3.3% Announces 8.8% increase to its dividend Q4-F2026 performance highlights • Revenue of $4.15
How this was made
The 30-second read
Why it matters
The earnings release delivers fresh financial metrics, showing revenue growth, EPS expansion, and a higher dividend, which are likely to influence investor sentiment and short‑term price action.
Market read
First‑report earnings for a mid‑cap tech services company; material financial improvements suggest a bullish short‑term outlook.
What to watch
Restructuring costs and integration expenses could weigh on future margins; the dividend increase may signal limited reinvestment opportunities.
CGI Q4-F2026: revenue up 3.3% to CAD 4,146.1 million, GAAP diluted EPS up 30.2% to $2.24, adjusted diluted EPS up 8.5% to $2.31; dividend raised 8.8%
Revenue grew 3.3% (2.5% in constant currency) and GAAP net earnings rose 20.8%, helped by the absence of Q4 restructuring costs in the current quarter. Adjusted operating and net margins declined year over year, adjusted net earnings grew only 0.8%, and full-year bookings were slightly below the prior year. Book-to-bill stayed above 100% in both the quarter (109.2%) and the trailing twelve months (105.6%).
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenue, Q4-F2026GAAP | CA$4.15B | – | 3.3% |
| Constant currency revenue growth, Q4-F2026non-GAAP | 2.5% | – | – |
| Earnings before income taxes, Q4-F2026GAAP | CA$628.3M | – | 21.7% |
| Earnings before income taxes margin, Q4-F2026GAAP | 15.2% | – | up 230 basis points |
| Adjusted earnings before interest and taxes, Q4-F2026non-GAAP | CA$678M | – | 1.6% |
| Adjusted earnings before interest and taxes margin, Q4-F2026non-GAAP | 16.4% | – | down 20 basis points |
| Net finance costs, Q4-F2026GAAP | CA$30.1M | – | – |
| Net earnings, Q4-F2026GAAP | CA$460.7M | – | 20.8% |
| Net earnings margin, Q4-F2026GAAP | 11.1% | – | up 160 basis points |
| Diluted EPS, Q4-F2026GAAP | $2.24 | – | 30.2% |
| Adjusted net earnings, Q4-F2026non-GAAP | CA$475.4M | – | 0.8% |
| Adjusted net earnings margin, Q4-F2026non-GAAP | 11.5% | – | down 30 basis points |
| Adjusted diluted EPS, Q4-F2026non-GAAP | $2.31 | – | 8.5% |
| Cash provided by operating activities, Q4-F2026GAAP | CA$551.9M | – | – |
| Cash provided by operating activities as a percentage of revenue, Q4-F2026other | 13.3% | – | – |
| Bookings, Q4-F2026other | CA$4.53B | – | – |
| Book-to-bill ratio, Q4-F2026other | 109.2% | – | – |
| Purchase for cancellation of Class A subordinate voting shares and related tax, Q4-F2026GAAP | CA$166.7M | – | – |
| Return on invested capital, Q4-F2026non-GAAP | 13.9% | – | – |
| Days sales outstanding, Q4-F2026other | 43 | – | – |
| Revenue, FY2026GAAP | CA$16.57B | – | 4.2% |
| Constant currency revenue growth, FY2026non-GAAP | 2.2% | – | – |
| Earnings before income taxes, FY2026GAAP | CA$2.48B | – | 10.6% |
| Earnings before income taxes margin, FY2026GAAP | 15.0% | – | up 90 basis points |
| Adjusted earnings before interest and taxes, FY2026non-GAAP | CA$2.71B | – | 3.7% |
| Adjusted earnings before interest and taxes margin, FY2026non-GAAP | 16.3% | – | down 10 basis points |
| Net finance costs, FY2026GAAP | CA$122.7M | – | – |
| Net earnings, FY2026GAAP | CA$1.81B | – | 9.3% |
| Net earnings margin, FY2026GAAP | 10.9% | – | up 50 basis points |
| Diluted EPS, FY2026GAAP | $8.58 | – | 16.7% |
| Adjusted net earnings, FY2026non-GAAP | CA$1.90B | – | 1.4% |
| Adjusted net earnings margin, FY2026non-GAAP | 11.5% | – | down 30 basis points |
| Adjusted diluted EPS, FY2026non-GAAP | $8.98 | – | 8.2% |
| Cash provided by operating activities, FY2026GAAP | CA$2.48B | – | 11.0% |
| Cash provided by operating activities as a percentage of revenue, FY2026other | 15.0% | – | – |
| Bookings, FY2026other | CA$17.51B | – | – |
| Book-to-bill ratio trailing twelve months, FY2026other | 105.6% | – | – |
| Backlog at September 30, FY2026other | CA$32.07B | – | – |
| Purchase for cancellation of Class A subordinate voting shares and related tax, FY2026GAAP | CA$1.55B | – | – |
| Return on invested capital, FY2026non-GAAP | 13.9% | – | – |
| Days sales outstanding, FY2026other | 43 | – | – |
Capital returns
- Q4-F2026 cash dividends distributed: $35.1 million; F2026 cash dividends distributed: $144.1 million.
- On November 10, 2026, the Board approved a quarterly cash dividend of $0.185 per share, an 8.8% increase, payable December 18, 2026 to shareholders of record at the close of business on November 27, 2026. Designated an 'eligible dividend' for Canadian tax purposes.
- Q4-F2026: invested CAD 166.7 million under the Normal Course Issuer Bid to purchase and cancel 1,650,700 Class A subordinate voting shares and to pay for 54,900 Class A subordinate voting shares purchased but neither paid nor cancelled as at June 30, 2026.
- F2026: invested CAD 1,553.1 million under the previous and current Normal Course Issuer Bid to purchase and cancel 14,164,627 Class A subordinate voting shares and to pay for 80,300 Class A subordinate voting shares purchased but neither paid nor cancelled as at September 30, 2025.
- Q4-F2026 weighted average diluted shares: 205.5 million versus 221.9 million in Q4-F2025 (as printed in the financial highlights table).
What drove it
- Company states that the revenue growth in constant currency was 2.5% in Q4-F2026 and 2.2% in F2026; the foreign currency impact was 0.8% in Q4-F2026 and 2.0% in F2026, as printed in the reconciliation tables.
- Company states that Q4-F2026 bookings were driven by a 122% quarterly book-to-bill ratio for its AI-embedded managed services (CEO statement).
- Company's explanation for the lower year-over-year long-term debt and lease liabilities: scheduled repayment in full of CAD 834.9 million (US$600.0 million) senior notes in September 2026, partially offset by new senior unsecured notes.
- Q4-F2025 included restructuring of CAD 98,796 thousand, which is added back to derive Q4-F2025 adjusted EBIT; Q4-F2026 shows no restructuring line. Q4-F2026 acquisition and related integration costs were CAD 19,665 thousand, against CAD 22,764 thousand in Q4-F2025.
- F2025 included restructuring of CAD 196,796 thousand; F2026 shows no restructuring line. F2026 acquisition and related integration costs were CAD 104,028 thousand, against CAD 88,235 thousand in F2025.
- Net finance costs rose to CAD 122.7 million in F2026 from CAD 83.7 million in F2025, as printed in the financial highlights table. The filing does not explain the change.
- Effective tax rate: 26.7% in Q4-F2026 versus 26.1% in Q4-F2025; 26.9% in F2026 versus 26.0% in F2025 (GAAP). Adjusted effective tax rate: 26.6% and 26.5% in F2026 quarter and year.
Concerns
- Adjusted EBIT margin fell 20 basis points year over year in Q4-F2026 (16.4% versus 16.6%) and 10 basis points in F2026 (16.3% versus 16.4%), per the filing.
- Adjusted net earnings grew only 0.8% in Q4-F2026 and 1.4% in F2026. Adjusted net earnings margin declined 30 basis points in both periods.
- Q4-F2026 cash provided by operating activities was CAD 551.9 million versus CAD 663.0 million in Q4-F2025, and 13.3% of revenue versus 16.5%.
- F2026 bookings of CAD 17,507 million were slightly below F2025's CAD 17,572 million, although the trailing twelve month book-to-bill of 105.6% remained above 100%.
- Net finance costs were CAD 30.1 million in Q4-F2026 versus CAD 29.6 million, and CAD 122.7 million in F2026 versus CAD 83.7 million.
- The reported EPS gain is supported by a lower share count: weighted average diluted shares fell to 205.5 million in Q4-F2026 from 221.9 million, and to 211.3 million in F2026 from 225.5 million.
What to watch
- Whether adjusted EBIT margin stabilises at the current 16.4% in Q4-F2026 level, given the decline in the adjusted and reported margin lines.
- Conversion of the 109.2% Q4-F2026 book-to-bill and CAD 32,074 million backlog into revenue in F2027, which the CEO links to the AI-embedded managed services bookings.
- The pace of cash provided by operating activities after the Q4-F2026 decline, and the impact of the new CAD 498.6 million net senior notes proceeds on the debt position.
- Net finance cost trend, which rose from CAD 83.7 million in F2025 to CAD 122.7 million in F2026.
- Management's stated plan to invest in 'build and buy growth' in Fiscal 2027 and how that affects acquisition spend and margins. The filing gives no quantified plan.
- Level of share repurchases after CAD 1,553.1 million of F2026 purchases for cancellation.
Balance sheet and cash flow
- Cash and cash equivalents at September 30, 2026: CAD 493.9 million versus CAD 864.2 million at September 30, 2025.
- Long-term debt and lease liabilities (current and long-term portions): CAD 3,955.8 million versus CAD 4,331.3 million a year earlier. Company states this was mainly driven by the scheduled repayment in full in September 2026 of senior unsecured notes of CAD 834.9 million (US$600.0 million), partially offset by senior unsecured notes issued in September 2026 for net proceeds of CAD 498.6 million.
- Long-term debt split as printed in the reconciliation footnote: long-term debt CAD 3,324.4 million (CAD 3,637.8 million at September 30, 2025) and lease liabilities CAD 631.5 million (CAD 693.5 million at September 30, 2025).
- Net debt (non-GAAP): CAD 3,422.7 million versus CAD 3,451.4 million a year earlier.
- Net debt to capitalization ratio (non-GAAP): 24.7% versus 25.1% a year earlier.
- Q4-F2026 invested CAD 89.4 million back into the business and acquired businesses for CAD 34.6 million net of cash acquired. F2026 invested CAD 385.4 million back into the business and acquired businesses for CAD 198.2 million net of cash acquired.
- F2026 cash provided by operating activities: CAD 2,479.4 million, 15.0% of revenue, per the financial highlights table; the press release prose gives $2.48 billion.
- Backlog at September 30, 2026: CAD 32,074 million, or 1.9 times annual revenue, per the filing.
Analysis
CGI reported Q4-F2026 revenue of CAD 4,146.1 million, up 3.3% year over year, or 2.5% in constant currency, with the company citing a foreign currency impact of 0.8% for the quarter. Full-year revenue reached CAD 16,573.6 million, up 4.2% (2.2% in constant currency, 2.0% foreign currency impact). Growth was modest on a constant currency basis in both periods. Bookings of CAD 4,526 million in Q4-F2026 compared with CAD 4,786 million a year earlier, giving a 109.2% quarterly book-to-bill. Full-year bookings of CAD 17,507 million were slightly below the prior year's CAD 17,572 million, and backlog rose to CAD 32,074 million from CAD 31,451 million.
Profitability presents a split picture. GAAP earnings before income taxes rose 21.7% in Q4-F2026 to CAD 628.3 million, and GAAP net earnings rose 20.8% to CAD 460.7 million. Diluted EPS of $2.24 was up 30.2%. The filing shows restructuring costs of CAD 98,796 thousand in Q4-F2025 and none in Q4-F2026, which is one of the reported items behind the GAAP comparison. On the adjusted basis, adjusted EBIT grew 1.6% to CAD 678.0 million, but its margin fell 20 basis points to 16.4%. Adjusted net earnings rose 0.8% to CAD 475.4 million, with an 11.5% margin, down 30 basis points. Adjusted diluted EPS of $2.31 was up 8.5%. For F2026, adjusted EBIT rose 3.7% and adjusted net earnings rose 1.4%, with the adjusted net margin down 30 basis points to 11.5%. The share count reduction is printed in the reconciliation: weighted average diluted shares were 205.5 million in Q4-F2026 versus 221.9 million a year earlier.
Cash generation weakened in the quarter. Cash provided by operating activities was CAD 551.9 million, 13.3% of revenue, against CAD 663.0 million and 16.5% in Q4-F2025. For the full year, operating cash flow was CAD 2,479.4 million, up 11.0%, or 15.0% of revenue. Capital allocation remained active: CGI paid CAD 35.1 million in Q4 dividends and CAD 144.1 million over the year, invested CAD 166.7 million in Q4 under its Normal Course Issuer Bid versus CAD 490.8 million a year earlier, and CAD 1,553.1 million across F2026. Its acquisition spend was CAD 34.6 million in Q4 and CAD 198.2 million for the year. The board raised the quarterly dividend to $0.185 per share, an 8.8% increase.
The balance sheet improved on the debt line. Long-term debt and lease liabilities fell to CAD 3,955.8 million from CAD 4,331.3 million, and net debt fell to CAD 3,422.7 million from CAD 3,451.4 million. The company states that the decline was mainly driven by the scheduled repayment of senior notes of CAD 834.9 million (US$600.0 million), partly offset by new notes with net proceeds of CAD 498.6 million. Net debt to capitalization was 24.7%, against 25.1%. Net finance costs rose to CAD 122.7 million in F2026 from CAD 83.7 million, and the filing does not explain this increase.
The filing contains no guidance for F2027, so no forward figures can be compared. The CEO said CGI will invest in build and buy growth in Fiscal 2027, and cited client interest in AI and quantum computing, but gave no quantified targets. Investors should watch whether adjusted margins stabilise, whether the Q4 bookings strength converts into revenue, and whether operating cash flow recovers from the Q4 decline.
Management, verbatim
We continued to deliver revenue growth, earnings expansion and strong bookings which were driven by a 122% 1 quarterly book-to-bill ratio for our AI-embedded managed services.
Tim Hurlebaus, President and Chief Executive Officer
As we enter Fiscal 2027, we are well positioned strategically, operationally and financially to invest in driving both build and buy growth.
Tim Hurlebaus, President and Chief Executive Officer
Not in the filing
stated, not guessed- Forward guidance for Fiscal 2027 (revenue, gross margin, operating expenses, tax rate): not provided in the filing.
- Previous outlook / prior guidance: not provided, so no guidance comparison was made.
- Segment or geographic revenue breakdown: not provided in the filing.
- Revenue sub-lines (for example by service line or industry): not provided.
- Cost of sales, gross margin, and operating expense lines (SG&A, R&D): not provided in the filing.
- Q3-F2026 (prior quarter) figures: not provided, so no sequential (qoq) changes can be stated.
- Year-over-year percentage change for Q4 operating cash flow and for bookings in CAD: not printed.
- Prior-year value for constant currency growth: not printed for the same period.
- Prior-year backlog change percentage: not printed.
- Share price reaction and analyst consensus estimates: not provided in the documents.
- Quarterly prior-year figures for net debt, long-term debt and cash flow changes: not printed as percentage changes.
- Explanation for the rise in net finance costs: not provided in the filing.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
CGI Inc., a Canadian IT services firm listed on NYSE (GIB) and TSX, filed its FY2026 earnings via SEC Form 6‑K, providing the first official numbers for the fiscal year.
Ticker impact
CGI reported FY2026 earnings with revenue of $16.57 bn (+4.2% YoY) and EPS $8.58 (+16.7% YoY), plus a dividend increase, marking the first public disclosure of these results.
likely upward pressure as investors price in stronger earnings and higher dividend
The release shows double‑digit EPS growth and a dividend increase, both fresh and material for a mid‑cap listed issuer.
Market effects
Positive earnings may lift the broader Canadian IT services sector and peers such as Accenture and IBM.
Supports the Toronto market's technology segment, potentially boosting TSX tech indices.
Adds to the global tech earnings landscape, offering a contrast to US peers with slower growth.
Counterpoint
If the revenue growth is modest and the AI‑related bookings are still early, the stock may be overvalued despite the beat.
Key entities
- ExecutiveTim Hurlebaus
President and CEO of CGI, quoted in the release.
