GIB.A changes
Pick any two versions below to diff them.
- Price
- CA$106.42 → CA$112.45(+5.7%)
- Next earnings
- Oct 29, 2026 → Nov 11, 2026
- Next earnings is estimate
- Yes → No
- Thesis
- The market prices CGI for slow growth and for the fear that AI tools will lower the amount of IT services work that clients buy. Revenue grew only 1.3% in constant currency in Q3 fiscal 2026, down from 7.0% a year earlier. Investors fear that AI can do part of the coding, testing and support work that IT services firms sell by the hour or by the project. CGI also has a new CEO, Tim Hurlebaus, since May 12, 2026. CGI's results are steady: adjusted diluted EPS rose 9.0% in Q3 fiscal 2026, the trailing book-to-bill ratio was 108.1%, and cash from operations was 15.8% of revenue over 12 months. For the gap to close, three things must be true. Organic revenue growth must rise from the low single digits, as the large government awards in the backlog turn into revenue. The adjusted EBIT margin must stay near 16%, which shows that AI does not force price cuts. CGI must keep buying back shares and making accretive acquisitions with its strong cash flow. The Q4 fiscal 2026 removed: report, expected in late October or early added: report on November added: 11, 2026, and the next quarters give the evidence. If growth picks up, the gap can close over the next four to six quarters. The main reason it may not close is a lasting fall in demand for traditional IT services because of AI.
- Checkpoints
- removed: Oct 29, 2026 (estimate): added: Nov 11, 2026: Q4 fiscal 2026 results: growth and bookings. Pending. Watch: Constant currency revenue growth above 1.3%, an adjusted EBIT margin near 16% and a book-to-bill ratio above 100% pass; falling revenue or a lower margin fails. Jan 2027 (estimate): Q1 fiscal 2027: first full year under the new CEO. Pending. Watch: Organic growth that rises as government awards turn into revenue, with steady margins, passes; another quarter of growth near zero fails.