IT services firm CGI's Q3 revenue up 11.4%, beats expectations

CGI

30/07/2025 11:43

Overview

CGI fiscal Q3 revenue grows 11.4% yr/yr, beating analyst expectations

Adjusted EPS for fiscal Q3 beats consensus, driven by AI-related services

Adjusted EBIT for fiscal Q3 exceeds analyst estimates, indicating operational resilience

Outlook

CGI expects C$100 mln restructuring costs in 2025

CGI aims for improved profitability amid stable market conditions

Result Drivers

AI MOMENTUM - Strong momentum in AI-related projects contributed to revenue growth, per CEO François Boulanger

CAPITAL DEPLOYMENT - Strategic deployment of capital and financial strength fueled revenue increase, according to CGI

RESTRUCTURING COSTS - Incurrence of restructuring and acquisition costs impacted earnings before income taxes

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
C$4.09 bln
C$4.02 bln (10 Analysts)
Q3 Adjusted EPS
Beat
C$2.1
C$2.08 (11 Analysts)
Q3 EPS
C$1.82
Q3 Adjusted Net Income
Miss
C$470.10 mln
C$470.40 mln (5 Analysts)
Q3 Net Income
C$408.60 mln
Q3 Adjusted EBIT
Beat
C$666.10 mln
C$654.30 mln (9 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 3 "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$178.00, about 22.7% above its July 29 closing price of C$137.55

Press Release: ID:nCNWrJPJqa

(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.)