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- **Revenue Growth**: Q4 revenue up 9.7% YoY to $1.0B, driven by acquisitions and APAC expansion. AI-driven managed services bookings surged $11B YoY.
- **AI Strategy Impact**: 30% productivity gains in managed services via AI tools; internal AI investments to improve SG&A efficiency.
- **Federal Risk**: Q1 revenue impact of $60-75M from U.S. federal shutdown, but strong Q4 bookings (185% YoY) suggest recovery potential.
- **M&A Momentum**: 2026 pipeline includes 1-1.5x revenue deals in APAC/Europe; recent $135M Poland acquisition doubles local presence.

**【CFO Financial Commentary】**
- Q4 revenue grew 9.7% YoY to $1.0B, driven by acquisitions and APAC growth. EBIT margin improved 20bps to 16.6%, with adjusted net earnings up 7% YoY to $472M. Diluted EPS rose 11% to $2.13. Cash flow from operations was $663M, with DSO at 45 days. Capital allocation included $81M in strategic investments, $491M in buybacks, and $33M in dividends.

**【CEO Summary Section】**
- Full-year revenue increased 4.6% on a constant-currency basis, with managed services up 12%. AI-driven managed services bookings rose $11B YoY. CGI's AI strategy focuses on embedding AI into services, leading with IP and alliances, uniting talent with AI, and internal AI adoption. Federal shutdown may impact Q1 revenue by $60-75M but expects rebound post-reopening.

**【Q&A Highlights】**
- **Federal Business Outlook**: Q4 bookings in U.S. Federal were 185% of prior year, with optimism for post-shutdown growth. 
- **AI Margin Uplift**: Managed services using AI tools achieved 30% productivity gains, with internal AI investments expected to improve SG&A efficiency.
- **M&A Pipeline**: CGI plans aggressive 2026 M&A in APAC and Europe, targeting 1-1.5x revenue deals. Recent Comarch acquisition will double Poland presence.
- **Canadian Federal Opportunities**: Sovereign cloud and defense modernization projects could drive new business, leveraging CGI's global IT expertise.

CGI Inc (GIB) Q4 2025 Earnings Call Transcript

- **Revenue Growth**: Q3 2025 revenue up 11.4% YoY to $4.1 billion, driven by acquisitions and financial services.
- **AI Expansion**: 40% of IP revenue now includes AI, with new CGI SpeedOps platform launched.
- **Booking Momentum**: 12-month book-to-bill 107%, with $2.6 billion in go-to-market partnership wins.
- **Profitability**: Adjusted EBIT margin 16.3%, cash flow strong at $487 million.
- **Market Outlook**: CEO sees "floor" in organic growth, but tariff resolution needed for recovery.

**【CFO Financial Commentary】**
- Q3 2025 revenue: $4.1 billion (+11.4% YoY), driven by acquisitions and financial services growth.
- Constant currency growth: 7% YoY, with U.K./Australia (+37%), U.S. (+9%), and APAC (+6.4%).
- Bookings: $4 billion (Q3) / $12.8 billion (9M), book-to-bill 101% (Q3) / 107% (12M).
- Adjusted EBIT: $666 million (+10.5% YoY), margin 16.3% (down 10bps due to integration costs).
- Cash flow: $487 million (Q3), DSO 43 days.
- Share buybacks: $286 million (Q3) / $784 million (9M), dividend $0.15/share.

**【CEO Summary】**
- 9M 2025 revenue: $11.9 billion (+8% YoY), adjusted EBIT $1.9 billion (+7% YoY).
- AI-driven growth: 40% of IP revenue now includes AI, with CGI SpeedOps platform launched.
- Strategic wins: $200M+ contracts with State of California, European Space Agency, and U.S. financial institutions.
- Pipeline momentum: +20% in managed services, +120% in go-to-market partnerships (e.g., Google Public Sector).
- Integration progress: Apside merger nearing completion, BJSS fully integrated by Q4.

**【Q&A Highlights】**
- **Organic Growth**: Financial services (+9.6% YoY), government (+8.7% YoY), offset by softness in Continental Europe.
- **Partnerships**: $2.6 billion in bookings via go-to-market alliances (120% YoY growth).
- **Margins**: U.S. federal margins stable, restructuring costs ($100M+ for 2025) impacting near-term profitability.
- **AI Impact**: 40% of IP revenue now AI-enabled, headcount productivity improving via automation.
- **Market Outlook**: "Floor" in organic growth seen, but tariff resolution needed for full recovery.
- **Acquisition Strategy**: Pipeline remains robust, prioritizing accretive deals alongside buybacks.

CGI Inc. (GIB) Q3 2025 Earnings Call Transcript

- **Revenue Growth**: Q2 $4B (+7.6% YoY), driven by U.S. Federal and acquisitions. North America leads at +6.4%, Europe lags at +0.7%.
- **Profitability**: Adjusted EBIT margin 16.5%, EPS $2.12 (+7.6% YoY). Free cash flow $438M (11% of revenue).
- **Managed Services Momentum**: Bookings +21% YoY, 122% book-to-bill ratio. Key win: $524M California payroll modernization.
- **M&A Expansion**: $1.6B in 2025 acquisitions, adding 5,500 consultants. Apside deal deepens European presence.
- **Risks**: Europe restructuring ($137M expected) to improve EBIT margin to 16% (currently 14.5%). SI&C bookings lagging at 0.9x.
- **AI & Innovation**: CGI Advantage platform powers 134% IP book-to-bill. ESA AI solutions and bank capability centers highlight AI-driven growth.


**【CFO Financial Commentary】**
- Q2 revenue: $4 billion (+7.6% YoY, +3.3% ex-FX), driven by acquisitions and U.S. Federal growth. Key regions: North America (+6.4%), Europe (+0.7%), Asia Pacific (+6.8%).
- IP revenue: 21.5% of total, down 90bps YoY due to acquisition dilution. Book-to-bill ratio: 112% (124% North America, 101% Europe).
- Profitability: Adjusted EBIT $666M (+5.9% YoY), margin 16.5%. Diluted EPS $2.12 (+7.6% YoY). Free cash flow $438M (11% of revenue).
- Restructuring: $44M incurred in Q2, $137M expected over next quarters, impacting 1.5% of workforce.
- Capital allocation: $1.56B in acquisitions, $345M share buybacks, $34M dividends.

**【CEO Business Overview】**
- H1 FY2025: Revenue $7.8B (+6.3% YoY), Adjusted EBIT $1.28B (+5.3%), Adjusted EPS $4.08 (+7.4%).
- Mergers & Acquisitions: 3 Q2 completions (BJSS, Novatec, Momentum) + Apside exclusivity agreement. Total 2025 acquisitions: $1.6B, adding 5,500+ consultants.
- Client demand: Strong for modernization, data, cybersecurity, AI. Managed services bookings +21% YoY. Notable wins: California payroll modernization ($524M), ESA AI solutions, U.S. bank global capability center.
- Market trends: Clients balancing caution with urgency, 15%+ growth in managed services pipeline. Europe manufacturing sector softness, U.S. financial sector rebound.

**【Q&A Key Themes】**
- **U.S. Federal Dynamics**: Clients signing bridge contracts vs. renewals, but new projects (e.g., NOTAM system) continue. DSO stable at 40 days, no payment delays.
- **SI&C vs. Managed Services**: SI&C bookings lagging (0.9x book-to-bill), while managed services at 122%. Restructuring in Europe targeting 16% EBIT margin (currently 14.5%).
- **M&A Integration**: Acquired firms (e.g., Daugherty, BJSS) leveraging CGI's global scale, with early momentum in managed services.
- **AI & Pricing**: Using AI to deliver cost savings to clients, shared between CGI and customers. Pricing pressure limited to short-term consulting projects.
- **Data Sovereignty**: Growing demand for on-prem solutions, aligning with CGI's hybrid cloud strategy.
- **Risk Management**: Proactive restructuring in Europe, $183M reinvested in AI/cybersecurity, $1.6B acquisitions for metro market scale.


CGI, Inc. (GIB) Q2 2025 Earnings Call Transcript

- **Revenue Growth**: CAD3.8B (+5.1% YoY) driven by North America and government/financial services sectors.
- **Margin Expansion**: EBIT margin 15.6% (+100bps YoY), Non-GAAP EPS CAD1.97 (+7.7% YoY).
- **M&A Momentum**: Acquired 3,500+ consultants via Daugherty (U.S.) and BJSS (U.K.), expanding AI and commercial capabilities.
- **Cash Efficiency**: Cash from ops CAD646M (17.1% of revenue), with CAD2.3B+ free cash flow for FY25.
- **AI Acceleration**: AI pipeline up 40% YoY, integrating into GCCs to deliver cost savings and innovation.
- **Client Confidence**: 9.5/10 satisfaction score, 87% employees hold CGI shares.


**【CEO Opening Remarks】**
- Q1 revenue reached CAD3.8 billion, up 5.1% YoY (2.7% in constant currency), driven by strong growth in North America (U.S. federal +14%, Canada +5.9%) and government/financial services sectors.
- Book-to-bill ratio of 110% reflects healthy demand, with North America and Europe both at 110%.
- Margins improved: EBIT margin 15.6% (+100bps YoY), adjusted EBIT margin 16.2%.
- Acquired Daugherty (U.S.) and announced merger with BJSS (U.K.), adding 3,500+ consultants and expanding AI capabilities.
- Client satisfaction at 9.5/10, with 87% of employees holding CGI shares.

**【CFO Financial Highlights】**
- GAAP net income: CAD439M (11.6% margin), Non-GAAP EPS: CAD1.97 (+7.7% YoY).
- Cash from operations: CAD646M (17.1% of revenue), up 110bps YoY.
- Capital allocation: CAD83M reinvested, CAD30M for acquisitions, CAD153M buybacks, CAD34M dividends.
- Tax rate: 25.9%, expected 25.5%-26.5% for FY25.

**【Q&A Key Takeaways】**
- **M&A Strategy**: No pause in acquisitions; U.K. and U.S. deals demonstrate capacity to integrate while maintaining financial discipline. BJSS adds CAD275M annual revenue, focused on commercial sectors.
- **Europe Performance**: Germany restructuring costs CAD42M (to be completed by Q3), but managed services pipeline strong. Europe EBIT margin 15.6% vs. 16.2% globally.
- **AI Growth**: Pipeline up 40% YoY, with wins in healthcare, financial services, and government. Integrating AI into GCCs (Global Capability Centers) to drive cost savings and innovation.
- **Cash Flow**: Target 15%+ cash conversion; Q1 at 17.1% due to DSO improvement. FY25 free cash flow expected to exceed CAD2.3B.

**【Forward Outlook】**
- Reiterate FY25 plan with disciplined execution of 'build and buy' strategy.
- Focus on high-margin managed services (12%+ growth) and IP (21.6% of revenue).
- Target doubling revenue in 5-7 years through accretive acquisitions and operational excellence.


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