Q1 2026 CGI Inc Earnings Call Transcript
Key Points
- CGI Inc (GIB) reported a 7.7% year-over-year revenue growth, reaching $4.1 billion, driven by business acquisitions and demand for their APAC delivery center.
- The acquisition of BJSS led to a 31% growth in the UK and Australia segment, significantly enhancing CGI's scale and service offerings.
- Bookings for the quarter were strong at $4.5 billion, with a book-to-bill ratio of 110%, indicating robust demand across various regions.
- The company generated a record high cash flow from operations of $872 million, representing 21.4% of total revenue, due to effective collection efforts.
- CGI Inc (GIB) continues to invest in AI, with 65% of their IT solutions incorporating AI-enabled intelligent automation, enhancing their service offerings.
- The US operations were negatively impacted by the federal shutdown, affecting revenue and profitability in the quarter.
- Adjusted EBIT margin decreased by 10 basis points to 16.1%, partly due to the US federal shutdown and a one-time $8 million impact from regulatory changes in India.
- The effective tax rate increased to 26.3%, up 40 basis points from the previous year, primarily due to a statutory tax increase in France.
- Despite strong bookings, the US Federal segment remains in a dynamic environment, with potential future shutdowns posing risks.
- The company faces challenges in fully realizing AI's potential due to complexities in data quality and integration, which may slow down client adoption.
Ladies and gentlemen. Welcome to CGI's first-quarter fiscal 2026 conference call.
I would now like to turn the meeting over to Mr. Kevin Linder, SVP of Investor Relations. Please go ahead, Mr. Linder.
Thank you, Julie, and good morning. With me to discuss CGI's first-quarter fiscal 2026 results are François Boulanger, our President and CEO; and Steve Perron, Executive Vice President and CFO. This call is being broadcast on cgi.com and recorded live at 9:00 AM Eastern Time on Wednesday, January 28, 2026.
Supplemental slides as well as the press release we issued earlier this morning are available for download, along with our MD&A, financial statements, and accompanying notes, all of which have been filed with both SEDAR+ and EDGAR.
Please note that some statements made on the call may be forward-looking. Actual events or results may differ materially from those that are expressed or implied, and CGI disclaims any intent or obligation to update or revise any
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