CGI Group Inc. (NYSE:GIB) reported fourth-quarter fiscal 2026 adjusted earnings of C$2.31 per share, exceeding analysts’ consensus estimate of C$1.63, as the information technology and business consulting services company recorded higher revenue and net earnings.
Quarterly revenue reached C$4.15 billion, compared with the analyst consensus forecast of C$2.92 billion, representing a 3.3% increase from the corresponding period of the previous year.
CGI shares advanced 0.34% in premarket trading on Wednesday following the announcement.
The company also reported higher annual revenue, increased adjusted earnings per share and operating cash flow of C$2.48 billion for fiscal 2026.
In addition, CGI announced an 8.8% increase in its quarterly dividend to C$0.185 per share.
CGI generated revenue of C$4.15 billion during the fourth quarter of fiscal 2026, an increase of 3.3% compared with the corresponding period of 2025.
On a constant currency basis, revenue increased 2.5% year over year.
The reported revenue exceeded the analyst consensus estimate of C$2.92 billion by approximately C$1.23 billion.
Management attributed the company’s quarterly performance to its client relationships, service offerings and operational execution.
CGI provides information technology consulting, business consulting and managed services to organisations across multiple industries and geographic markets.
The company’s quarterly results reflected continued demand for its services, including managed services incorporating artificial intelligence capabilities.
CGI reported fourth-quarter net earnings of C$460.7 million, representing an increase of 20.8% compared with the previous year.
The result corresponded to a net earnings margin of 11.1%.
Adjusted net earnings increased 0.8% year over year to C$475.4 million, representing an adjusted net earnings margin of 11.5%.
Adjusted diluted earnings per share reached C$2.31, compared with analysts’ expectations of C$1.63.
The reported figure exceeded consensus estimates by C$0.68 per share.
The difference between reported and adjusted net earnings reflects the company’s use of adjusted financial measures alongside its statutory results.
The increase in reported net earnings was greater than the growth in adjusted net earnings during the quarter.
CGI reported new bookings of C$4.53 billion during the fourth quarter.
The figure represented a book-to-bill ratio of 109.2%, indicating that the value of new bookings exceeded revenue recognised during the period.
The book-to-bill ratio measures the relationship between new contract bookings and reported revenue, providing information about business activity and future contracted work.
CGI also reported a quarterly book-to-bill ratio of 122% for its artificial intelligence-embedded managed services.
The figure indicates that bookings for these services exceeded the associated revenue during the quarter.
The company did not provide a separate monetary value for AI-embedded managed services bookings in the supplied results.
The reported bookings contributed to CGI’s total backlog at the end of fiscal 2026.
CGI Chief Executive Officer Tim Hurlebaus attributed the company’s fourth-quarter results to its client relationships and operating activities.
“CGI’s fourth quarter performance reflects the strength of our client relationships, the relevance of our offerings and the operational excellence of our team,” Hurlebaus said.
The comments followed the company’s reported increase in quarterly revenue, net earnings and new bookings.
CGI’s financial results also included growth in constant currency revenue and bookings exceeding quarterly sales.
The company reported continued activity in AI-embedded managed services, with a quarterly book-to-bill ratio of 122%.
These developments formed part of CGI’s operating performance during the final quarter of its 2026 financial year.
For fiscal 2026, CGI reported total revenue of C$16.57 billion, representing an increase of 4.2% compared with fiscal 2025.
Adjusted diluted earnings per share increased 8.2% year over year to C$8.98.
The annual results reflected revenue growth across the company’s IT and business consulting operations.
CGI also generated C$2.48 billion in cash flow from operating activities during the financial year.
Operating cash flow represented approximately 15.0% of annual revenue.
The company reported these figures alongside its fourth-quarter earnings, providing a summary of its financial performance for the full fiscal year.
CGI ended fiscal 2026 with a contract backlog of C$32.07 billion.
The backlog represented approximately 1.9 times the company’s annual revenue.
The figure reflects the value of contracted business that has not yet been recognised as revenue.
CGI’s fourth-quarter bookings of C$4.53 billion contributed to its overall contracted business activity.
The backlog provides information about future contracted services, although the timing of revenue recognition depends on contract terms, service delivery schedules and customer requirements.
The company reported the backlog alongside its annual revenue and operating cash flow figures.
CGI announced an increase of 8.8% in its quarterly dividend to C$0.185 per share.
The dividend is scheduled to be paid on December 18, 2026.
The increase follows the company’s reported annual revenue growth, higher adjusted earnings per share and operating cash flow generation.
The company did not provide additional dividend payment conditions or shareholder eligibility dates in the supplied announcement.
CGI employs approximately 94,000 consultants and professionals worldwide, supporting its consulting, technology and managed services operations.
CGI shares advanced 0.34% in premarket trading after the company reported adjusted earnings and revenue above analyst consensus estimates.
The fourth-quarter results showed a 3.3% increase in reported revenue, a 20.8% rise in net earnings and bookings of C$4.53 billion.
For the full financial year, revenue increased 4.2% to C$16.57 billion, while adjusted diluted earnings per share rose 8.2% to C$8.98.
The company also reported a C$32.07 billion backlog and increased its quarterly dividend to C$0.185 per share.
CGI’s financial performance reflected higher annual revenue and earnings, continued contract bookings and cash generation from operating activities.
The company’s backlog and future bookings will remain relevant measures for assessing its contracted business activity and revenue development in fiscal 2027.
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