CGI Inc. (GIB) AI Stock Analysis
GIB AI stock analysis summary
AI ResearchCGI Inc. (NYSE: GIB) is a global IT and business process services provider with trailing twelve month revenue of $16.44B. The company trades at a forward P/E of 10.0x and generated $1.96B in free cash flow during FY2025. Over the five years from FY2020 to FY2025, revenue grew at a compound annual rate of 5.5%.
- Market cap
- $15.59B
- Revenue (TTM)
- $16.44B
- P/E
- 12.9x fwd 10.0x
- 1Y return
- -12.9% S&P 500 16.8%
- Avg. target
- $81.46 8.2% vs last close
Bull case
- CGI trades at a forward P/E of 10.0x and an EV-to-EBITDA of 7.9x, both well below the US-listed Technology peer medians of 18.8x and 16.6x.
- The business generated $1.96B of free cash flow in FY2025, supporting $1.29B in share buybacks and a 15.4% reduction in share count over five years.
- Earnings per share grew at a quarterly rate of 22.5% year-over-year in the period ended June 30, 2026, while analysts project full-year EPS to reach $8.92.
Bear case
- Revenue growth slowed to 2.5% year-over-year in the latest quarter, below the US-listed Technology peer median growth rate of 11.6%.
- Total debt stands at $4.34B against $633.4M in cash and short-term investments, leaving a net debt position of $3.70B and a current ratio of 0.93.
- The stock has lagged broader markets over the long term, declining 15.9% over five years while the S&P 500 gained 83.0%.
What CGI does
CGI Inc., alongside its subsidiaries, is a global provider of comprehensive information technology and business process services. The company's portfolio includes IT and business outsourcing, systems integration, consulting, and software solutions. CGI provides application development, integration, maintenance, testing, portfolio management, modernization, and business consulting services, as well as critical IT infrastructure services. Headquartered in Montreal, Canada, the company operates across regions including Canada, Europe, Australia, the United States, and the Asia Pacific. It serves clients in government, banking, healthcare, utilities, communication, media, oil and gas, retail, manufacturing, insurance, life sciences, and transportation.
Growth and profitability
Annual revenue rose from $12.13B in FY2021 to $15.91B in FY2025, reflecting 8.4% growth in the most recent fiscal year. Over the same span, net income expanded from $1.37B to $1.66B, while diluted earnings per share reached $7.74 in FY2025. Operating margin expanded to 20.6% in FY2025, up from 16.5% in FY2024 and 16.1% in FY2021. For the trailing twelve months ended June 30, 2026, revenue stood at $16.44B with an operating margin of 16.2% and EPS of $5.82. In the latest quarter ended June 30, 2026, revenue grew 2.5% year-over-year, while quarterly earnings increased 22.5%.
Balance sheet and cash flow
As of June 30, 2026, CGI held $633.4M in cash and short-term investments alongside total debt of $4.34B, resulting in net debt of $3.70B. Shareholders' equity totaled $10.15B, with a debt-to-equity ratio of 0.43 and a current ratio of 0.93. During FY2025, the company generated $2.23B in operating cash flow and invested $269.9M in capital expenditures. Capital returns in FY2025 included $1.29B directed to share buybacks and $135.1M in dividends paid, contributing to a 15.4% reduction in share count over 5 years.
Valuation and performance
CGI trades at a trailing P/E of 12.9x and a forward P/E of 10.0x, below the median of its US-listed Technology peers of 28.1x and 18.8x, respectively. Its enterprise value of $17.00B corresponds to an EV-to-EBITDA multiple of 7.9x, compared to the peer median of 16.6x, and a price-to-sales ratio of 0.9x versus 2.8x for peers. Over the past year, the stock fell 12.9%, lagging the S&P 500 benchmark return of 16.8%. Over a five-year period, the stock declined 15.9% compared to an 83.0% gain for the benchmark.
GIB dividend
CGI pays a quarterly dividend with a forward annual payout of $0.49, providing a dividend yield of 0.65%. The dividend payout ratio stands at 6.5%, and the company has paid dividends for 3 consecutive years. Its most recent ex-dividend date was August 14, 2026.
What analysts expect
Wall Street coverage includes 3 Strong Buy, 5 Buy, 6 Hold, and 1 Sell ratings. The mean price target is $81.46, representing an 8.2% premium over the October 16, 2026 close of $75.30. Consensus estimates project FY2026 revenue of $16.56B with EPS of $8.92. For the following fiscal year ending September 30, 2027, 14 analysts project revenue of $16.98B and EPS of $9.77. The company beat EPS estimates in 3 of the last 4 quarters, with its next earnings report scheduled for November 11, 2026.
Key risks and what to watch
- The current ratio of 0.93 indicates that short-term liabilities exceed short-term assets as of June 30, 2026.
- Net debt of $3.70B requires continued cash generation from operations to service the $4.34B total debt burden.
- Annual revenue growth was 2.7% in FY2024 and projected to be 2.6% in FY2027, highlighting potential deceleration in top-line expansion.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this GIB AI stock analysis
This page is an AI-written research summary of CGI Inc. (GIB). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: GIB income statement, GIB balance sheet, GIB key metrics, GIB analyst forecast, GIB chart. See the GIB stock overview for the latest quote and news.
GIB AI stock analysis FAQ
What was CGI's revenue and earnings performance in FY2025?
In FY2025, CGI reported revenue of $15.91B, representing an 8.4% increase from the prior year. Net income reached $1.66B, resulting in diluted earnings per share of $7.74.
Does CGI pay a dividend?
Yes, CGI pays a quarterly dividend with a forward annual rate of $0.49 per share, equating to a 0.65% yield. The payout ratio is 6.5%, and the company has paid dividends for 3 consecutive years.
How does CGI's valuation compare to other technology companies?
CGI trades at a trailing P/E of 12.9x and an EV-to-EBITDA of 7.9x. These multiples are lower than the US-listed Technology peer medians of 28.1x and 16.6x, respectively.
When is CGI's next earnings report date?
CGI is scheduled to report its next quarterly financial results on November 11, 2026.