Canada's CGI misses Q1 revenue estimates

CGI

28/01/2026 11:38

Corrects Q1 revenue to C$4.08 bln from C$872 mln in key details table; corrects headline and overview section to say revenue beat estimates

Overview

Canada IT consulting firm's Q1 revenue rose 7.7%, beating analyst expectations

Adjusted EPS for Q1 met analyst expectations

Adjusted net income for Q1 beat analyst estimates

Outlook

Bookings of C$4.47 billion and a backlog of C$31.32 billion indicate strong demand and future growth potential

Result Drivers

MANAGED SERVICES - Strong performance in managed services with a book-to-bill ratio of 117% drove results, according to CEO François Boulanger

CASH GENERATION - Record-high cash from operations of C$872 million was achieved through disciplined management and quality delivery

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Beat
C$4.08 bln
C$4.07 bln (9 Analysts)
Q1 Adjusted EPS
Meet
C$2.12
C$2.12 (10 Analysts)
Q1 EPS
C$2.03
Q1 Adjusted Net Income
Beat
C$461 mln
C$447.25 mln (4 Analysts)
Q1 Net Income
C$442 mln
Q1 Adjusted EBIT
Slight Miss*
C$655.10 mln
C$656.88 mln (8 Analysts)

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 3 "hold" and 1 "sell" or "strong sell"

The average consensus recommendation for the it services & consulting peer group is "buy"

Wall Street's median 12-month price target for CGI Inc is C$148.50, about 23.8% above its January 27 closing price of C$119.95

The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 14 three months ago

Press Release: ID:nCNWpSlmHa

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.

 (This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)