CGI (GIB) Q3 2025 earnings summary

Executive summary

• Revenue for Q3 FY2025 reached CAD 4.1 billion (USD 4.09 billion), up 11.4% year-over-year, driven by acquisitions, strong financial services, and AI-related client wins.

• Adjusted EBIT was CAD 666 million (USD 666.1 million), up 10.5% year-over-year, with a margin of 16.3%.

• Net earnings declined 7.2% to CAD 409 million (USD 408.6 million), while adjusted net earnings increased 6.8% to CAD 470 million (USD 470.1 million).

• Bookings exceeded CAD 4 billion (USD 4.15 billion), with a book-to-bill ratio of 101% for the quarter and 107% on a trailing twelve-month basis.

• Strategic capital deployment, AI integration, and a resilient service mix positioned the company in the top quartile of its peer group.

Financial highlights

• Revenue up 11.4% year-over-year (7% in constant currency); North America grew 7.4%, Europe 6.6%, Asia Pacific 6.4%.

• Adjusted net earnings were CAD 470 million (USD 470.1 million), margin 11.5%; diluted EPS CAD 2.10 (USD 2.10), up 9.9% year-over-year.

• Net earnings were CAD 409 million (USD 408.6 million), margin 10%, diluted EPS CAD 1.82 (USD 1.82), down 4.7%.

• Cash from operations was CAD 487 million (USD 486.6 million), 11.9% of revenue, impacted by restructuring and integration payments.

• Year-to-date, revenue was CAD 11.9 billion, up 8% (4.4% in constant currency); adjusted EBIT CAD 1.9 billion, adjusted EPS CAD 6.18.

Outlook and guidance

• Expect to incur approximately CAD 100 million (USD 100 million) in restructuring costs over the remainder of 2025.

• Tax rate expected to remain in the 25.5%-26.5% range.

• Signs of stabilization in procurement volumes and contract values; green shoots in banking and financial services.

• Managed services and IP pipelines up over 20% year-over-year; IP pipeline up more than 10%.

• Management remains focused on resilience, capital deployment, and profitable growth as macroeconomic uncertainty eases.