CGI Inc. Reports Impressive Q3-F2025 Financial Growth

CGI Inc. Q3-F2025 Financial Performance Overview
CGI Inc. (TSX: GIB.A, NYSE: GIB) has reported significant financial results for the third quarter of Fiscal 2025, showcasing resilience and growth in a challenging economic environment. With revenues soaring by 11.4% compared to the previous year, CGI continues to demonstrate its robust market position.
Revenue Highlights
For the third quarter, the company's revenue reached a remarkable $4.09 billion. This impressive growth reflects a year-over-year increase of 11.4%, and when adjusted for constant currency, the growth stands at 7.0%. These results highlight the effectiveness of CGI's strategic initiatives and its ability to adapt to changing market conditions.
Profitability Metrics
Despite a rise in costs associated with acquisitions and structural adjustments, CGI reported earnings before income taxes totaling $551.6 million. This figure represents a slight decrease of 7.1% from the previous year, resulting in a margin of 13.5%. However, adjusted earnings before interest and taxes (EBIT) rose by 10.5%, reaching $666.1 million, with a margin of 16.3%.
Net Earnings and Earnings Per Share
Net earnings for the quarter were $408.6 million, down 7.2% from the same period last year, equating to a diluted earnings per share (EPS) of $1.82. In contrast, the adjusted net earnings improved by 6.8% to hit $470.1 million, with an adjusted diluted EPS of $2.10, indicating effective cost management and operational efficiency.
Cash Flow and Operational Efficiency
CGI’s cash provided by operating activities was $486.6 million, reflecting a solid 11.9% of revenue, demonstrating strong operational performance. The trailing twelve-month cash generation reached $2.20 billion, representing 14.1% of total revenue. This solid cash flow aids CGI in its ongoing investments in technology and service improvements.
Bookings and Backlog
The company’s bookings for Q3-F2025 were approximately $4.15 billion, resulting in a healthy book-to-bill ratio of 101.4%. CGI also reported a backlog of $30.58 billion, equating to two times its annual revenue, underscoring a strong pipeline for future projects and revenue stability.
Strategic Investments and Future Outlook
Looking ahead, CGI remains committed to investing in growth opportunities. Particularly in Generative and Agentic AI technologies, the company aims to bolster its status as a trusted transformation partner across various industries. François Boulanger, President and CEO, emphasized the importance of leveraging CGI's financial strength and expertise to navigate the complexities of a challenging business landscape.
Conclusion
CGI Inc.'s third-quarter results showcase the company’s adeptness at navigating market challenges while maintaining its growth trajectory. With a clear focus on strategic investments and innovation, CGI is well-positioned to capitalize on emerging opportunities in the technology sector.
Frequently Asked Questions
What were CGI's total revenues in Q3-F2025?
CGI reported total revenues of $4.09 billion in Q3-F2025.
How did CGI's net earnings compare to the previous year?
CGI's net earnings decreased by 7.2% compared to the same period last year, totaling $408.6 million.
What is CGI’s approach to artificial intelligence initiatives?
CGI has focused on investing in Generative and Agentic AI technologies to enhance its service offerings and support client transformations.
What's the significance of CGI's backlog?
CGI's backlog of $30.58 billion indicates two times its annual revenue, showcasing a strong potential for future earnings.
What was CGI's diluted EPS for Q3-F2025?
CGI's diluted EPS for the quarter was $1.82, reflecting a decrease from the previous year's results.
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