CGI (GIB) Q3 2026 earnings summary

Executive summary

• Q3 revenue reached $4.19 billion (CAD 4.2 billion), up 2.5% year-over-year, driven by acquisitions and strong APAC and European growth.

• Net earnings were $465 million, with diluted EPS up 22.5% to $2.23; adjusted EPS rose 9% to $2.29.

• Bookings matched revenue at $4.2 billion for a 100% book-to-bill in Q3; trailing 12-month book-to-bill was 108.1%.

• Backlog stood at $31.8 billion, or 1.9x revenue, with over $12 billion to be realized in the next 12 months.

• Strong cash generation, with $605 million in Q3 and $2.6 billion over the trailing 12 months.

Financial highlights

• Revenue up 2.5% year-over-year (1.3% in constant currency); APAC organic growth 9.7%, Western/Southern Europe 8.6%.

• Adjusted EBIT was $682 million (16.3% margin), up 2.3% year-over-year.

• Net earnings margin at 11.1%; adjusted net earnings margin at 11.4%.

• Effective tax rate increased to 26.5% due to a new French corporate tax surcharge.

• DSO stable at 43 days; cash from operations 14.4% of revenue in Q3.

Outlook and guidance

• Managed services pipeline up 20% year-over-year; SI&C and IP opportunity pipelines up over 30%.

• AI-embedded services pipeline nearly $10 billion, double last year.

• Management expects continued profitable growth, supported by strong government sector awards and robust demand for AI, cybersecurity, and modernization.

• Hiring up 10% sequentially and 50% year-over-year, especially in the U.S. and APAC.

• Expect continued investment in AI, M&A, and talent to drive future growth.