CGI Stock Plummets Despite All-Time Buy Consensus

Forward-Looking Analysis

Eight Wall Street analysts have issued a unanimous 'Buy' rating for CGI (GIB.A), with an average price target of C$166.90, representing a 35.68% upside from the current price of C$123.01. The highest and lowest price targets are C$190.00 and C$142.00, respectively. Analysts highlight CGI’s strategic investments in AI, including a C$1 billion commitment over three years to expand capabilities, as a key growth driver. Recent partnerships, such as with Mustimuhw Information Solutions for fire safety in First Nation communities and Helsinki University Hospital for AI-driven brain CT analysis, underscore CGI’s expanding clientele and innovation. Additionally, CGI’s Q1 2026 earnings are expected to benefit from its onshore delivery center in Knoxville, Tennessee, and a 10-year contract for New Jersey recovery operations. However, risks include a high debt-to-equity ratio and recent stock volatility.

Historical Performance Review

In 2025Q4, CGI reported revenue of $4.01 billion, net income of $381.36 million, EPS of $1.73, and gross profit of $667.97 million. The quarter reflected stable performance, with revenue and profitability aligning with long-term trends in IT and business consulting services.

Additional News

CGI was named to Forbes’ 'World’s Best Management Consulting Firms' list for 2023. The company partnered with HSBC to develop a digital trade finance platform and with the Finnish Food Authority to modernize farm subsidy systems using AI and satellite technology. CGI also launched Sunflower® Work Management, a new solution for project management. Recent challenges include a 15.2% stock decline year-to-date and a 52-week low, though analysts remain optimistic about its AI-driven growth trajectory.

Summary & Outlook

CGI’s financial health remains robust, supported by a 7.6% year-over-year revenue increase and a 18.86% return on equity. Growth catalysts include AI expansion, strategic partnerships, and onshore delivery centers. Risks include debt leverage and market volatility. With strong analyst consensus and a 35.68% projected upside, CGI is positioned for bullish momentum in 2026Q1, provided execution on AI initiatives and client retention aligns with expectations.