Q2 2026 CGI Inc Earnings Call Transcript
Key Points
- CGI Inc (GIB) reported a revenue increase of 3.3% year-over-year, reaching $4.2 billion, driven by business acquisitions and strong demand from North American clients.
- The company achieved a book-to-bill ratio of 104% in Q2, with notable performance in the U.S. Federal segment at 122% and Germany at 114%.
- Adjusted EBIT rose by 3.9% year-over-year to $692 million, with a strong margin of 16.6%.
- CGI Inc (GIB) continues to invest in AI, with strategic partnerships with companies like OpenAI and Google Cloud, enhancing its AI-powered managed services.
- The company maintains a strong financial position with $2.2 billion in capital resources and a net debt leverage ratio of just over one, providing capacity for future growth initiatives.
- The U.S. Federal unit experienced delays in decision-making and ramp-up of new contracted work, impacting growth.
- There were decision-making delays across Europe, particularly in the Nordic countries, affecting larger agreements.
- The effective tax rate increased to 26.6% due to a new corporate tax surcharge in France.
- The manufacturing sector, especially in France and Germany, is experiencing softness due to economic challenges.
- Despite strong cash generation, there was a slowdown in share buybacks in March, attributed to lower free cash flow.
Ladies and gentlemen, and welcome to CGI's second-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, Sylvia, and good morning. With me to discuss CGI's second-quarter fiscal 2026 results are Francois Belanger, our President and CEO and Steve Perron, Executive Vice President and CFO.
This call is being broadcast on cgi.com 00 a.m. Eastern Time on Wednesday, April 29, 2026. Supplemental slides as well as a 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 Cedar Plus and EDGAR. Please note that some statements made on the call may be overlooking. 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-looking statements, whether as a result of new
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