CGI Profit Down, Revenue Up 11% on AI Demand

CGI's net income fell to C$296.7m ($408.6m) in Q3, down from C$440.1m in the same period last year. However, revenue rose 11% to C$4.09bn, driven by strong demand for artificial intelligence services. Bookings reached C$4.15bn, with a book-to-bill ratio of 101.4%. The company's backlog stands at C$30.58bn.

In its third-quarter fiscal 2025 report, CGI Group Inc. (NYSE: GIB) reported mixed financial results. While net income fell to CAD 296.7 million ($408.6 million), a decrease of 11.4% year-over-year, the company's revenue surged by 11% to CAD 4.09 billion, driven largely by strong demand for artificial intelligence (AI) services [1, 2].

Revenue growth, excluding foreign currency variations, was 7%, with bookings reaching CAD 4.15 billion, representing a robust book-to-bill ratio of 101.4% [1, 2]. CGI's backlog, a measure of future projects, stood at CAD 30.58 billion, equivalent to approximately twice its annual revenue [1, 2].

CGI's adjusted earnings before interest and taxes (EBIT) reached CAD 666.1 million, an increase of 10.5% year-over-year, with a margin of 16.3%. Net earnings were CAD 408.6 million, down 10% year-over-year, with adjusted diluted earnings per share (EPS) of CAD 2.10, an increase of 9.9% year-over-year [1, 2].

The company's cash provided by operating activities was CAD 486.6 million, representing 11.9% of revenue. The company also reported increased net debt of CAD 3.12 billion and invested CAD 286.2 million in share buybacks. CGI declared a quarterly dividend of CAD 0.15 per share, payable on September 19, 2025 [1, 4].

CGI's CEO, François Boulanger, attributed the company's continued strong momentum to AI-related wins, stating, "On a day-to-day basis, our CGI Partners work jointly with clients to use AI to inform, accelerate and improve project delivery" [1]. The company's AI expertise was a key driver of its revenue growth in the quarter.

Despite the mixed results, CGI's strong backlog and robust bookings suggest a positive outlook for future quarters. The company's focus on AI and its strategic deployment of capital are likely to continue driving growth.

References:

[1] CGI Group Inc. (2025). CGI Reports Third Quarter F2025 Results. Retrieved from https://www.cgi.com/en/cgi-reports-third-quarter-f2025-results
[2] Marchese, A. (2025). CGI Profit Slides; AI Boosts Revenue Growth. MarketWatch. Retrieved from https://www.marketwatch.com/story/cgi-profit-slides-ai-boosts-revenue-growth-491068e4
[3] Bucher Industries AG. (2025). Bucher Industries Shares Fall 4% as Guidance Cut Offsets Agri Order Recovery. Investing.com. Retrieved from https://www.investing.com/news/earnings/bucher-industries-shares-fall-4-as-guidance-cut-offsets-agri-order-recovery-4159414
[4] CGI Group Inc. (2025). CGI Reports Third Quarter Fiscal 2025 Results. Stocktitan. Retrieved from https://www.stocktitan.net/news/GIB/cgi-reports-third-quarter-fiscal-2025-sjgcu0q0pcy2.html