CGI (0A18) AI Stock Analysis

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CGI

(LSE:0A18)

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Positive Factors

Strong cash generationCGI consistently converts earnings into substantial cash, giving it flexibility to fund technology investment, acquisitions, buybacks and dividends. Strong operating cash flow also provides resilience if project timing changes, while supporting continued reinvestment in AI and managed-services capabilities.

Negative Factors

Limited organic revenue growthReported growth currently depends heavily on acquisitions, indicating that underlying demand has not yet translated into strong broad-based organic expansion. This can make future growth more dependent on integration and capital deployment rather than solely on existing-client momentum.

CGI (0A18) vs. iShares MSCI United Kingdom ETF (EWC)

Market Cap: CAD 14.84B
Dividend Yield: 0.59%
Average Volume (3M): 202
Price to Earnings (P/E): 14.3
Beta (1Y): -0.07
Revenue Growth: 5.67%
EPS Growth: 6.31%
Country: UK
Employees: 94,000
Sector: Technology
Sector Strength: 61
Industry: Information Technology Services

CGI Business Overview & Revenue Model

Company Description

Founded in Montreal, Canada, in 1976, CGI Inc. stands as a prominent global firm specializing in information technology (IT) and business process services. Its extensive geographic footprint covers Canada, the United States, the United Kingdom, vario...

CGI Earnings Call Summary

Earnings Call Date:Nov 11, 2026(Q4-2026)|% Change Since:-1.19%|Next Earnings Date:Feb 03, 2027

Earnings Call SentimentPositive

The call was strongly positive overall. CGI reported improving quarterly revenue growth, strong bookings and backlog, higher earnings and cash generation, a rebound in U.S. Federal, broad client demand, continued AI and alliance momentum, and confidence in further improvement during fiscal 2027. The main challenges were a sub-100% Q4 SI&C book-to-bill ratio, weakness in new-business bookings, a higher tax rate, modest and potentially uneven organic growth, a U.K. client insolvency and unresolved U.S. federal appropriations. Highlights significantly outweighed the lowlights.

Positive Updates

Q4 Revenue Growth Improved Sequentially

Fourth-quarter revenue was $4.15 billion, up 3.3% year-over-year, or 2.5% excluding foreign exchange, representing a 120-basis-point sequential improvement. Growth was primarily driven by recent business acquisitions, which contributed approximately 2.4%.

Negative Updates

Q4 SI&C Book-to-Bill Below 100%

Systems Integration and Consulting ended Q4 with a 94% book-to-bill ratio, below the 100% level, although its full-year book-to-bill ratio was 101%.

Company Guidance

CGI expects its tax rate for future quarters to be in the range of 26% to 27%; expects the U.S. Federal EBIT margin to improve going forward into 2027 and sees more of the Federal rebound coming in 2027; expects organic growth overall to continue, with a tailwind in 2027 from vendor consolidation; expects continued improvement in organic growth, although it “might not be a straight line,” and has “high expectations of 2027”; will continue to pursue accretive acquisitions at pace as part of its fiscal 2027 business plan, with announcements expected in the first half of calendar 2027; and expects its mergers to drive future growth.

CGI Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

GB:0A18 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TSE:PVT	64Neutral	CAD 31.07M	19.60	3.09%	―	-22.72%	―
Sector *	61Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
TSE:ALYA	46Neutral	CAD 99.67M	-2.43	-27.81%	―	-3.88%	-1119.52%

* Technology Sector Average

Performance Comparison

GB:0A18 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
GB:0A18	CGI Inc.	114.92	-5.27	-4.38%
TSE:ALYA	Alithya Group, Inc. Class A	1.05	-0.69	-39.66%
TSE:PVT	Pivotree, Inc.	1.18	-0.37	-23.87%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

CGI AI Stock Analysis