CGI Announces Strong Financial Results for Fourth Quarter
Canadian IT and consulting giant CGI Inc. just released its fourth quarter and Fiscal 2025 results, showcasing a remarkable revenue growth of 9.7% year-over-year, amounting to $4.01 billion. This substantial increase in revenue reflects the effectiveness of CGI's strategic initiatives in a rapidly changing technology landscape.
Q4-F2025 Performance Highlights
The company reported an array of impressive financial metrics in the fourth quarter:
- Revenue surged to $4.01 billion, translating to a 9.7% increase year-over-year. Adjusted for constant currency, the growth stands at 5.5%.
- CGI achieved earnings before income taxes of $516.2 million, resulting in a 12.9% margin, despite a 12.9% decline year-over-year.
- Furthermore, adjusted earnings before interest and taxes amounted to $667.4 million, up by 11.2% year-over-year, with a margin of 16.6%.
- On the bottom line, net earnings were recorded at $381.4 million, yielding a net margin of 9.5% and a diluted earnings per share (EPS) of $1.72, reflecting a decline of 9.9% from the prior year.
- Cash flow from operating activities was robust at $663.0 million, representing 16.5% of total revenue.
- Bookings reached $4.79 billion, representing a book-to-bill ratio of 119.2%, indicating healthy future revenue streams.
Annual Performance Overview for F2025
For the entire Fiscal 2025, CGI reported notable achievements:
- Total revenue for the year reached $15.91 billion, up 8.4% year-over-year, with a constant currency increase of 4.6%.
- Earnings before income taxes were reported at $2.24 billion with a margin of 14.1%, compared to 15.6% in the previous year.
- Adjusted earnings before interest and taxes saw a healthy rise to $2.61 billion, reflecting an 8.1% increase year-over-year, achieving a margin of 16.4%.
- Net earnings stood at $1.66 billion, experiencing a slight decrease of 2.0%, and marking a margin of 10.4%.
- CGI's adjusted net earnings for the year reached an impressive $1.87 billion, yielding an adjusted EPS of $8.30, indicating growth of 8.9% from the previous year.
- Cash provided by operating activities was $2.23 billion, showing consistent performance at 14.0% of revenue.
- The backlog reached approximately $31.45 billion, showcasing a robust pipeline for future growth.
Investment Strategy and Shareholder Returns
Throughout the fourth quarter, CGI made significant investments back into its business, totaling $80.5 million. The company also executed acquisitions costing $237.5 million, net of cash acquired, further expanding its service offerings. An additional $490.8 million was invested in a share buyback program under its Normal Course Issuer Bid. Moreover, CGI rewarded its shareholders with a dividend payment of $33.3 million, demonstrating a commitment to shareholder value.
Dividend Announcement
On November 4, 2025, CGI’s Board of Directors declared a quarterly cash dividend of $0.17 per share, representing a 13% increase. This dividend is set to be paid to holders of Class A subordinate voting shares and Class B shares on December 19, 2025, to shareholders recorded by November 21, 2025.
Future Outlook and Growth Potential
François Boulanger, President and CEO of CGI, noted, "In the fourth quarter, CGI delivered robust revenue growth, strong cash generation, and notable EPS expansion. Our clients continue to view us as a trusted partner for transformation, which reflects positively in our book-to-bill ratio of 119%." Looking forward, Boulanger expressed optimism regarding CGI's ability to leverage its financial strengths and thorough execution to fuel further growth, with a significant pipeline boost resulting in a nearly 30% increase in new opportunities.
Employee Base and Global Reach
As of September 30, 2025, CGI employs around 94,000 consulting professionals worldwide. This talented workforce plays a crucial role in driving innovation and delivering high-quality service to clients across various sectors.
Frequently Asked Questions
What financial results did CGI report for Q4-F2025?
CGI reported a revenue of $4.01 billion, a 9.7% year-over-year growth, and net earnings of $381.4 million.
How did CGI perform throughout Fiscal 2025?
For Fiscal 2025, CGI achieved a revenue of $15.91 billion and net earnings of $1.66 billion, reflecting strong performance amidst challenges.
What is the recent dividend announced by CGI?
CGI announced a quarterly cash dividend of $0.17 per share, marking a 13% increase from previous dividends.
What are CGI's future growth plans?
CGI plans to leverage its financial strength and innovative service offerings to drive further growth, with a strong pipeline of new opportunities.
How many employees does CGI have globally?
As of now, CGI boasts an employee base of approximately 94,000 consultants and professionals worldwide.
