CGI Inc. (NYSE: GIB) posted fourth‑quarter and full‑year 2025 results that surpassed consensus expectations, with revenue reaching $4.01 billion—up 9.7% year‑over‑year and 5.5% in constant currency—while adjusted earnings before interest and taxes climbed to $667.4 million, a 16.6% margin. Net earnings were $381.4 million, translating to a 9.51% margin, and adjusted diluted earnings per share hit $2.13, a 10.9% increase from the prior year. The company also raised its quarterly dividend to $0.17 per share, a 13% hike, and booked $4.79 billion in new work, giving a book‑to‑bill ratio of 119.2%. Cash generated from operations was $663 million, or 16.5% of revenue, and the backlog stood at $31.45 billion—roughly twice annual revenue.
The revenue beat was driven by robust demand in CGI’s AI‑enabled services and its government and financial‑services segments. In constant currency, revenue grew 5.5% versus a 4.4% increase in Q4 FY2024, and the AI‑platform business contributed a significant share of the upside. The company’s global delivery network enabled it to capture new contracts in North America and Europe, offsetting modest headwinds in legacy consulting services. Compared with Q4 FY2024 revenue of $3.66 billion, the 9.7% year‑over‑year gain reflects both higher pricing power in high‑margin AI projects and a favorable mix shift toward more profitable service lines.
The adjusted diluted EPS beat the consensus estimate of $1.53 by $0.60, a 39% over‑performance. The lift was largely a result of disciplined cost management and operational leverage. While the company invested in AI platform development, it simultaneously tightened spend on lower‑margin support services, allowing the adjusted EBIT margin to expand from 16.4% in Q4 FY2024 to 16.6% in Q4 FY2025. The mix shift toward higher‑margin AI and digital‑transformation projects also contributed to the earnings beat, as did a modest reduction in one‑time restructuring charges compared with the prior year.
Margin performance remained strong, with adjusted EBIT margin expanding to 16.6% from 16.4% a year earlier, reflecting pricing power and cost discipline. Net earnings margin, calculated at 9.51%, is slightly higher than the 9.5% figure reported in the original article, correcting a rounding imprecision. Cash from operations, at 16.5% of revenue, underscores the company’s ability to convert sales into liquidity, supporting its dividend increase and future investment plans.
Management guided for a full‑year 2025 revenue outlook of $4.396 billion to $4.400 billion, up from the prior guidance of $4.14 billion to $4.15 billion, and adjusted operating income guidance of $2.151 billion to $2.155 billion, compared with $2.07 billion to $2.08 billion previously. The upgrade signals confidence in continued demand for AI‑driven services and the monetization of its platform. The dividend hike to $0.17 per share, a 13% increase, reflects the company’s commitment to returning value to shareholders while maintaining a strong liquidity position, with $2.7 billion in readily available capital and a net debt‑to‑capitalization ratio of 25.1%—figures that support ongoing investment and shareholder returns.
Strategically, CGI is accelerating its AI integration across service lines, with AI initiatives accounting for a growing portion of its IP‑based revenue. Recent acquisitions, including BJSS and Comarch Polska SA, have expanded its capabilities in digital transformation and cloud services. The company’s backlog of $31.45 billion, roughly twice annual revenue, signals sustained demand, particularly in government and financial‑services sectors. CEO François Boulanger emphasized that “we continue to see strong momentum in AI‑driven wins and profitable growth,” underscoring the company’s focus on high‑return verticals and operational excellence.
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