CGI shares fall 8.79% after hours despite Q1 2026 earnings beat, as investors doubt growth sustainability.

CGI Inc. (GIB) fell 8.79% in after-hours trading following its Q1 2026 earnings report, despite surpassing both revenue and EPS forecasts. The company reported $4.08 billion in revenue (40.21% above expectations) and $2.12 EPS (39.47% above estimates), driven by AI integration and strategic mergers. However, the stock declined sharply, likely reflecting investor skepticism about the sustainability of these results amid challenges such as U.S. government shutdown impacts, data quality hurdles in AI adoption, and broader macroeconomic uncertainties. While the CEO emphasized CGI’s momentum in AI and market expansion, the market reaction suggests concerns over near-term execution risks or muted enthusiasm for the guidance of "gradual improvement" in growth. The disconnect between strong earnings and the sharp price drop highlights a bearish sentiment, possibly due to perceived underperformance relative to market expectations or sector-specific pressures.