CGI Q4 Net Earnings Rise 20.8% as Adjusted Profit Grows 0.8%

CGI’s fourth-quarter report, published November 11, 2026 and stated in Canadian dollars, showed net earnings rising 20.8% to C$460.7 million as revenue increased 3.3% to C$4.146 billion for the period ended September 30, 2026. Adjusted net earnings, a company-defined non-GAAP measure, rose just 0.8% to C$475.4 million, a much smaller increase than the reported result.

The full release and reconciliation provide important context for that divergence: the year-earlier quarter included C$98.8 million of restructuring expense, compared with none in the latest quarter. The absence of that prior-year expense helps explain the sharp reported increase. On an adjusted basis, net earnings margin edged down to 11.5% from 11.8%.

Per-share growth was stronger than adjusted profit growth. Adjusted diluted EPS increased 8.5% to C$2.31 as the diluted weighted-average share count fell 7.4%. Fewer shares therefore amplified the improvement in per-share results, an effect separate from the modest increase in adjusted earnings.

Bookings Exceed Revenue as Quarterly Cash Flow Falls

Fourth-quarter bookings totaled C$4.526 billion, down from C$4.786 billion a year earlier, but remained above revenue with a book-to-bill ratio of 109.2%. Backlog stood at C$32.074 billion at quarter-end.

President and Chief Executive Officer Tim Hurlebaus said AI-embedded managed services recorded a 122% quarterly book-to-bill ratio, using a company measure that divides bookings for managed IT and business process services by revenue from those services.

Quarterly cash generation also weakened. Cash provided by operating activities declined to C$551.9 million from C$663.0 million, representing 13.3% of revenue. For fiscal 2026 as a whole, operating cash flow increased 11.0% to C$2.479 billion.

Full-Year Growth and Capital Returns

For the full fiscal year, revenue increased 4.2% to C$16.574 billion and net earnings rose 9.3% to C$1.813 billion. Adjusted net earnings increased 1.4%, showing that the gap between reported and adjusted growth extended beyond the fourth quarter.

CGI invested C$1.553 billion under its previous and current Normal Course Issuer Bid during fiscal 2026, including the purchase and cancellation of 14.16 million Class A subordinate voting shares. Those cancellations reduced the number of shares outstanding, adding to per-share growth.

The board also approved an 8.8% increase in the quarterly dividend to C$0.185 per share on November 10, 2026, adding a higher cash dividend to a year already marked by substantial repurchases.

CGI’s results distinguish a strong reported earnings rebound from more modest underlying growth. The prior-year restructuring expense supported the reported growth comparison, while a lower share count supported per-share results; adjusted margins and quarterly operating cash flow moved lower. Bookings above revenue and the backlog provide a base for future work. The open question for fiscal 2027 is whether AI-embedded managed-services demand translates into faster adjusted earnings growth and stronger quarterly cash generation.