Q4 2025 CGI Inc Earnings Call Transcript
Key Points
- CGI Inc (GIB) reported a 9.7% year-over-year increase in revenue, reaching $4 billion, driven by recent business acquisitions and demand for AAC delivery centers.
- The company's bookings for the quarter were close to $4.8 billion, with a book-to-bill ratio of 119%, indicating strong demand and future revenue potential.
- Adjusted EBIT in the quarter was $667 million, up 11.2% year-over-year, with an industry-leading margin of 16.6%.
- CGI Inc (GIB) increased its quarterly cash dividend by 13%, reflecting confidence in its financial health and commitment to returning value to shareholders.
- The company has a robust pipeline of opportunities, with managed services opportunities up by more than $11 billion compared to the previous year, indicating strong future growth potential.
- The federal government shutdown in the US is expected to impact CGI Inc (GIB)'s revenue by approximately $60 to $75 million in the next quarter.
- The company's DSO increased to 45 days from 41 days in the prior year, impacted by recent business acquisitions.
- CGI Inc (GIB) faces ongoing pricing pressure in the consulting business, although it mitigates this with outcome-based pricing models.
- There is some planned runoff of lower-margin work from recent acquisitions, which could impact profitability in the short term.
- The company is experiencing challenges in the business consulting segment, particularly in regions like France, where demand remains flat.
Good morning ladies and gentlemen. Welcome to CGI's 4th quarter fiscal 2026 conference call. I would not like to turn the meeting over to Mr. Kevin Linder, SVP of Investor relations. Please go ahead, Mr. Linder.
Thank you, Joelle, and good morning. With me to discuss CGI's 4th quarter in fiscal 2025 results are Francois Boanger, our President and CEO, and Steve Peron, executive Vice President and CFO. This call is being broadcast on CGI.com and recorded live at 9 a.m. Eastern Time on Wednesday, November 5th, 2025. Supplemental slides, as well as a press release we issued earlier this morning, are available for download along with our fiscal 2025. MD&A audited financial statements and accompanying notes, all of which have been filed with both Cedar Plus and Edgar.
Please note that some statements made on the call may be forward-looking. Actual events or results may differ materially from those expressed or implied, and CGI disclaims any intent or obligation to update or revise any forward
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