CGI
CGI Company Stability & Growth
This page was generated by Built In using publicly available information and AI-based analysis of common questions about the company. It has not been reviewed or approved by the company.
What's the stability & growth outlook for CGI?
Strengths in revenue momentum, bookings/backlog, and capital actions are accompanied by near‑term profitability pressures and execution risks tied to integrations and the quality of growth. Together, these dynamics suggest a growing, well‑funded provider with solid demand visibility, while margin trajectory and backlog conversion will determine resilience.
Positive Themes About CGI
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Strong Revenue Growth: Disclosures indicate FY2025 revenue of C$15.91B grew 8.4% year over year (4.6% in constant currency), with Q4‑FY2025 up 9.7%. This represents a clear acceleration versus FY2024’s modest growth baseline.
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Market Expansion: Reported bookings of C$17.57B (110% book‑to‑bill) and a year‑end backlog of C$31.45B (about 2x annual revenue) signal expanding demand and visibility. Ongoing acquisitions, including Online Business Systems, broaden capabilities and North American reach.
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Investor Backing & Capital Strength: Management increased the dividend by 13% and maintained strong operating cash flow, supporting continued M&A and shareholder returns. These actions indicate confidence in cash generation and balance‑sheet capacity.
Considerations About CGI
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Declining Profitability: Despite adjusted EBIT and EPS growth, earnings before income taxes declined in FY2025 and Q4 GAAP EPS dipped year over year. Restructuring, acquisition, and integration costs pressured reported margins during the growth push.
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Short-Term or Unsustainable Growth: Part of FY2025’s acceleration reflects a modest FY2024 base and foreign‑exchange tailwinds, with constant‑currency growth lower than reported. Elevated backlog requires effective conversion and integration execution to sustain margins and revenue momentum.
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