CGI Inc.

Q3 results: steady growth, solid margins, strong cash generation - Revenue: C$4.2B, +2.5% YoY (+1.3% excluding FX); growth driven largely by recent acquisitions (~2.5%) plus organic strength (notably APAC organic +9.7%). - Profitability: Adjusted EBIT C$682M (+2.3% YoY), margin 16.3% (stable YoY); Adjusted net earnings C$478M with margin 11.4%. - EPS accretion (key investor metric): GAAP diluted EPS C$2.23 (+22.5% YoY); Adjusted diluted EPS C$2.29 (+9% YoY). - Cash: C$605M in Q3 cash generation (14.4% of revenue); trailing 12-month cash on hand C$2.6B (~15.8% of revenue); DSO 43 days (flat YoY).

Bookings/backlog: healthy demand signals and visibility for future revenue - Bookings: C$4.2B in Q3; book-to-bill 100% (i.e., bookings ~ equal to revenue). - U.S. Federal book-to-bill 115% and Germany 114% were standout regions. - Trailing 12-month bookings: C$17.8B, book-to-bill 108% (stronger than quarter). - Backlog: C$31.8B (~1.9x revenue); ~C$12B of contracted revenue expected over next 12 months (+5% vs Q2). - Managed Services strength: Managed Services book-to-bill 115%; management emphasized step-growth—hence tracking trailing 12-month wins as a better indicator.

Outlook/expectations: continued momentum, driven by AI + managed services - Managed Services wins (trailing 12 months): C$10.3B wins (+5%), book-to-bill 115%. - Pipeline visibility improving: - Managed Services opportunity pipeline +20% YoY - SI&C opportunities +30% YoY - IP opportunities embedded across lines +30% YoY - Total opportunity pipeline over next 12 months +10% YoY; AI-embedded pipeline nearly C$10B (≈ double vs last year). - Hiring ramp: +10% sequential and +50% YoY (with the U.S. leading), indicating expected delivery ramp. - Tax rate forecast: effective tax rate expected 26%–27% in future quarters (France tax surcharge cited as the near-term driver of Q3 uptick).