CGI Inc. (GIB) reported its second‑quarter fiscal 2026 results, posting revenue of $4.16 billion, a 3.3% year‑over‑year increase, and diluted earnings per share of $1.63, down from the consensus estimate of $1.66. The company also reported an earnings‑before‑tax margin of 14.9%, up 40 basis points from the 14.5% margin recorded in the same quarter a year earlier, and an adjusted EBIT margin of 16.6%. Bookings rose to $4.31 billion, giving a trailing‑twelve‑month book‑to‑bill ratio of 108.4%.
Compared with the prior year, revenue grew from $4.02 billion to $4.16 billion, while diluted EPS increased from $1.89 to $1.63. The 14.9% EBT margin represents a year‑over‑year improvement of 40 basis points, reflecting stronger pricing power and cost discipline in the company’s core services. Bookings and the book‑to‑bill ratio continued to expand, underscoring a healthy pipeline of future revenue.
Despite the year‑over‑year growth, CGI missed consensus estimates for both revenue and EPS. Revenue of $2.99 billion fell short of the $3.11 billion forecast, and EPS of $1.63 was below the $1.66 estimate. The miss was attributed to softer demand in certain markets, which offset gains from acquisitions and AI‑enabled managed‑services demand. The company’s guidance for the remainder of the fiscal year was not updated, but the results suggest that the company’s growth trajectory may be more modest than analysts had anticipated.
In a statement, CEO François Boulanger said, "CGI delivered a strong first half of the fiscal year, with industry‑leading EPS accretion and cash generation." He added, "Even in the context of today's dynamic business environment, this performance reflects the resilience of our business model, the relationships with our clients, and the outstanding expertise of our global team." Boulanger also highlighted the company’s AI‑first strategy, noting that clients continue to invest in AI and that CGI’s focus on making AI real and outcome‑driven positions the firm well across industries and geographies.
Investors were disappointed as the company missed consensus estimates for both revenue and EPS, leading to a negative market reaction. The miss underscored the importance of meeting analyst expectations even when underlying growth trends remain positive.
CGI’s strong backlog and book‑to‑bill ratio, combined with its AI‑enabled services and strategic acquisitions, suggest that the company remains well positioned for long‑term growth. The company is also celebrating its 50th anniversary in 2026, marking a milestone in its history of delivering technology and consulting services worldwide.
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