Canadian IT services provider CGI beats Q4 profit estimates, hikes dividend

CGI

05/11/2025 12:46

Overview

CGI Q4 revenue up 9.7% yr/yr, meeting analyst expectations

Adjusted EPS for Q4 beats consensus, rising 10.9% yr/yr

Company announces 13% dividend increase, signaling confidence in future performance

Outlook

CGI sees nearly 30% increase in new opportunities in its pipeline

Company highlights AI and emerging technologies as growth drivers

CGI reports strong book-to-bill ratio, indicating healthy demand

Result Drivers

AI-EMBEDDED SERVICES - Growth in AI-embedded managed services contributed to revenue increase, per CEO François Boulanger

RESTRUCTURING COSTS - Completed restructuring program with C$98.8 mln in costs, impacting earnings

M&A AND BUYBACKS - M&A and share buyback program supported financial performance

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Meet
C$4.01 bln
C$4.01 bln (6 Analysts)
Q4 Adjusted EPS
Beat
C$2.13
C$2.10 (8 Analysts)
Q4 EPS
C$1.72
Q4 Adjusted Net Income
Miss
C$471.70 mln
C$476.30 mln (4 Analysts)
Q4 Net Income
C$381.40 mln
Q4 Adjusted EBIT
Beat
C$667.40 mln
C$655 mln (6 Analysts)

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", no "hold" and 2 "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$166.00, about 27.5% above its November 4 closing price of C$120.29

The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 15 three months ago

Press Release: ID:nPn5tdJrVa

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.)