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Stocks
CGI Inc.
EL7 Factor Analysis
How we score this
Overall79
Strong — clearly above market medianContrarianF 5/8Better than 79% of Market stocks, per EL7's model
FactorScoreDistributionValueAvgRank
▸
Valuation
90
12.0x▲17.8xTop tier
▸
Growth
49
5.7%▼7.1%Around median
▸
Quality
72
18.8%▲4.5%Top tier
▸
Safety
81
0.9x▲2.6xTop tier
▸
Capital Return
38
—2.12%Bottom tier
▸
Momentum
28
-23.1%▼2.9%Bottom tier
▸
Sentiment
72
10▲3Top tier
GIB

GIB CGI Inc.

CGI Inc. · NYSE
Market Closed
70.21
▲ ⁦+1.67%⁩ (+1.15)
Market Cap$15.0B
Beta0.17
52w Low52w High
59.6397.50
Last Week
⁦-3.62%⁩
Last Month
⁦-6.06%⁩
Last 3 Months
⁦-1.34%⁩
Last Year
⁦-27.18%⁩
Fair Value
Current price$70
Analyst target · 9 analysts
$70
⁦-0%⁩
See it fairly priced
Range ⁦$70–$70⁩
vs
DCF (estimate)
$131
⁦+86%⁩
Sees it clearly undervalued
⁦7.9⁩% discount · ⁦2⁩% growth
Bottom lineThe two methods disagree — estimate range ⁦$70–$131⁩.

Estimates — analyst targets and a simplified DCF, not investment advice.

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Analyst Consensus

This section combines price targets, revision history, analyst coverage changes, and an AI summary of what changed on the Street.

Price Target· 9 analysts setting price target
$70.00
⁦-0.3%⁩
Current Price $70.21·Median $70.00
Low
$70.00
High
$70.00
Street summary

Target stability amid a relative decline in valuations

Price targets remained unchanged over one day, one week, and 30 days, with consensus staying at 70, matching both the highest and lowest targets as well as the median. However, the number of analysts included rose from 2 to 9 over one day and one week, and from 6 to 9 over 30 days, reflecting broader coverage without any change in the target level or apparent dispersion among estimates. At the current price of 69.06, the target remains close to the market price.

As of 2026-09-10
Revisions momentum · 30d
⁦0.0%⁩
Average rating
★ 3.73
Buy
Analyst coverage
⁦15 (+4)⁩
New coverage
Buy conviction
53%
Mixed
Target dispersion
0%
Analyst ratings over time15 analysts rating
5
3
6
1
Strong BuyBuyHoldSellStrong Sell
Rating trend — last 12 months3.81 → 3.73
Recent analyst moves
  • = Reiterate2026-07-30
    CIBC
    Neutral
  • ⬇ Downgrade2026-07-23
    TD Securities
    BuyHold
  • = Reiterate2026-04-30
    UBS
    Neutral· $70.00
Premium content
Key Financials

Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.

StockSector medianSector averagetypical sector range
MetricValuePosition within sectorVerdict
  • P/E (TTM)
    12.02x
    6.87x54.92x
    Very cheap
  • Forward P/E
    —
    —
  • EV / EBITDA
    6.24x
    4.52x36.15x
    Very cheap
  • FCF Yield
    11.3%
    -54.8%10.8%
    Exceptional
  • Revenue Growth YoY
    5.7%
    -18.1%66.5%
    Below average
  • EPS Growth YoY
    6.4%
    -155.3%193.7%
    Near median
  • Gross Margin
    20.5%
    12.9%79.5%
    Below average
  • ROIC
    18.8%
    -63.6%26.5%
    Strong
  • Net Debt / EBITDA
    0.94x
    0.26x3.22x
    Low debt
  • Dividend Yield
    —
    —
  • Payout Ratio
    —
    —
  • Altman Z-Score
    —
    —
Financial Analysis
|

Stock Analysis

AI-generated
Based on 2026-07-29 data

Company Overview

CGI Inc. provides information technology, consulting, systems integration, and managed services, helping organizations and governments modernize applications, adopt cloud computing, strengthen cybersecurity, and operationalize artificial intelligence within daily operations. Approximately 56% of revenue comes from outcome- and service-level-based managed services, compared with approximately 44% from systems integration and consulting, and the company also incorporates platforms and intellectual property such as Momentum, Pulse, DigiOps, and CGI AIOps Nova into its contracts.

In fiscal Q3 2026, revenue reached C$4.2 billion, up 2.5% year over year, or 1.3% excluding currency effects, while recent acquisitions contributed approximately 2.5% of growth. Adjusted operating profit increased 2.3% to C$682 million, with its margin remaining stable at 16.3%, while GAAP net income reached C$465 million at a margin of 11.1%, and diluted earnings per share rose 22.5% to C$2.23.

Asia Pacific recorded organic growth of 9.7%, supported by North American financial services clients' use of global delivery centers, while Western and Southern Europe grew 8.6% with a contribution from the Apside acquisition, and the U.S. federal government segment achieved organic growth of 2.5%. At the fiscal 2024 level, EDGAR data showed revenue of $14.7 billion, net income of $1.7 billion, and earnings per share of 7.31, compared with revenue of $14.3 billion, net income of $1.6 billion, and earnings per share of 6.86 in fiscal 2023.

What's Driving the Stock

  • Bookings reached C$4.2 billion in fiscal Q3 2026, equivalent to 100% of revenue, and trailing 12-month bookings reached C$17.8 billion, while the backlog stood at C$31.8 billion, of which slightly more than C$12 billion was contracted for delivery over the following twelve months.
  • Opportunities for AI-related services are expanding; the value of opportunities involving AI-based services approached C$10 billion, twice the level from a year earlier, while total managed services opportunities increased 20%, systems integration and consulting opportunities increased more than 30%, and intellectual property opportunities increased more than 30%.
  • In fiscal Q3 2026, CGI secured a US$251 million contract from the U.S. General Services Administration, combining the Momentum platform, a secure AWS environment, and AI-powered automation to modernize financial management and improve efficiency and security.
  • Consulting services awards increased 11% year over year in fiscal Q3 2026, driven by change management services, CIO consulting, and security and risk consulting, while managed services generated C$10.3 billion in bookings over the trailing 12 months, up 5%.
  • The company generated C$605 million in cash in fiscal Q3 2026, equivalent to 14.4% of revenue, and trailing 12-month cash flow reached C$2.6 billion. During the quarter, it spent C$105 million on its business, including strategic investments in advanced artificial intelligence, C$413 million on share repurchases, and C$36 million on dividends.

Buying & Selling Case

▲ Buying Case4 pts

  • +The C$31.8 billion backlog, equivalent to 1.9 times revenue, provides relatively strong business visibility, particularly as contracted revenue for the following twelve months increased 5% compared with fiscal Q2 2026.
  • +CGI benefits from organizations moving from artificial intelligence experimentation to actual deployment, as the number of managed services proposals awaiting client decisions doubled, and their total value increased by more than 50% compared with the same period of the previous year.
  • +The company combines consulting, long-term contracts, and intellectual property; systems integration and consulting services may generate revenue more quickly and then pave the way for managed services contracts, while platforms such as Pulse, DigiOps, and Momentum allow reusable tools to be embedded in solutions.
  • +Trailing 12-month cash flow of C$2.6 billion and available capital resources of C$3.2 billion strengthen CGI's ability to invest, make acquisitions, repurchase shares, and pay dividends, while net leverage remains slightly above one time.

▼ Selling Case6 pts

Valuation

The analyst consensus is “Buy,” with a unified target of US$70; both the highest and lowest targets are US$70, meaning there is no estimate range providing a diversity of views. This target lies within the 52-week range of US$59.63–97.50, but is approximately 28% below the top of the range and approximately 17% above its bottom. The data does not include a valid comparable price-to-earnings ratio, so the stock valuation here is based on the narrow consensus target and the 52-week range, balanced against organic growth of 1.3% and the stable adjusted operating margin of 16.3%.

BuyAnalyst target: $70(-0.3%)

Figures in the text are as of 2026-08-29; the live price is shown at the top of the page.

FAQ

What is driving CGI's growth in fiscal Q3 2026?

Revenue increased 2.5% year over year to C$4.2 billion, but growth excluding currencies was only 1.3%. Recent acquisitions accounted for approximately 2.5% of growth, and the Apside acquisition contributed to Western and Southern Europe reaching growth of 8.6%. Meanwhile, Asia Pacific achieved organic growth of 9.7%, and the U.S. federal government segment achieved organic growth of 2.5%.

How does CGI benefit from spending on artificial intelligence?

The value of opportunities involving AI-based services reached nearly C$10 billion in fiscal Q3 2026, twice the level from a year earlier. The company integrates artificial intelligence into managed services, consulting, and intellectual property platforms such as Pulse, DigiOps, Momentum, and CGI AIOps Nova. The US$251 million U.S. General Services Administration contract also includes AI-powered automation within the Momentum platform and a secure AWS environment.

What is the size of CGI's contracted business?

The backlog reached C$31.8 billion in fiscal Q3 2026, equivalent to 1.9 times revenue. The backlog includes slightly more than C$12 billion in contracted revenue for delivery over the following twelve months, up 5% from fiscal Q2 2026. Trailing 12-month bookings reached C$17.8 billion, while managed services recorded a book-to-bill ratio of 115%.

Earnings callEDGAR filings30-day newsInsider activity

Automated analysis for informational purposes only — not investment advice.

  • −Organic growth in fiscal Q3 2026 was limited to 1.3% excluding currencies, while recent acquisitions accounted for approximately 2.5% of growth; this shows that reported revenue expansion relied significantly on external deals rather than the existing business alone.
  • −The opportunity pipeline does not automatically convert into bookings or revenue; the book-to-bill ratio was only 100% in fiscal Q3 2026, and management confirmed that some managed services contracts may take months or more than a year before appearing on the income statement.
  • −Some deals in the Nordic countries experienced delays in client decisions during fiscal Q3 2026, and some large clients had previously moved more cautiously on transformation programs, which may delay an acceleration in organic growth despite the expanding opportunity pipeline.
  • −Artificial intelligence creates potential pressure on the pricing and human labor model; some clients revisited return calculations after computational token usage costs emerged, while management explained that integrating artificial intelligence tools may enable services to be delivered faster and more efficiently and at a better price for the client.
  • −Maintaining the competitive advantage depends on CGI continuing to remain close to clients and understand their sector requirements, and management described weak ongoing client engagement as a risk that must be monitored to prevent competitors from offering more relevant insights or solutions.
  • −The adjusted operating profit margin remained stable at 16.3% in fiscal Q3 2026 rather than expanding, and the adjusted effective tax rate rose to 26.5% due to a new C$3 million corporate tax charge in France, with a rate between 26% and 27% expected in the following quarters.
  • Is CGI achieving growth in earnings and cash flows?

    GAAP net income reached C$465 million in fiscal Q3 2026, an increase of C$57 million, and diluted earnings per share rose 22.5% to C$2.23. Adjusted net income reached C$478 million and adjusted earnings per share reached C$2.29, up 9%. The company also generated C$605 million in cash during the quarter, and trailing 12-month cash flow reached C$2.6 billion.

    What are the main risks that could disrupt GIB's growth?

    The first risk is that organic growth did not exceed 1.3% in fiscal Q3 2026, while a significant contribution came from acquisitions. Decisions concerning two deals in the Nordic countries were also delayed, and managed services contracts may take months or more than a year before converting into revenue. Artificial intelligence adds a pricing challenge because some clients recalculated return on investment after computational token usage costs became clear, while the adjusted operating profit margin remained stable at 16.3%.

    How did CGI allocate capital in fiscal Q3 2026?

    CGI invested C$105 million in its business, including strategic investments in advanced artificial intelligence, and allocated C$50 million to acquisitions. It also spent C$413 million on share repurchases and returned C$36 million to shareholders through dividends. The board approved a quarterly dividend of C$0.17 per share, payable on September 18, 2026, to shareholders of record at the close of August 14, 2026.