CGI Inc - Ordinary Shares - Class A

Strong Revenue Growth: CGI reported Q2 fiscal 2025 revenue of $4 billion, a year-over-year increase of 7.6%, attributed mainly to business acquisitions. However, on a constant currency basis, growth was only 3.3%, impacted by one less billing day this quarter.

Challenges in Profitability: Adjusted EBIT for the quarter was $666 million (16.5% margin), up 5.9% YOY. Yet, net earnings were $430 million (10.7% margin), with a slight dip attributed to restructuring and acquisition-related costs, signaling potential headwinds to maintaining profitability.

Cash Flow and Investment Priorities: Generated $438 million in cash from operations, with a free cash flow of approximately $1.7 billion year-to-date. The company invested $2.3 billion in the first half of 2025, with priorities focused on business acquisitions, innovation in AI, and returning value to shareholders through stock buybacks ($345 million) and dividends ($0.15/share).