CGI Inc - Ordinary Shares - Class A

Q1/FY26 results: solid growth + strong cash; AI/integration driving demand - Revenue $4.1B, +7.7% YoY (+3.4% YoY excluding FX). - Profitability: Adjusted EBIT $655M (+7.1% YoY), margin 16.1% (down 10 bps QoQ/steady; impacted by specific items). - Record cash from operations: $872M (21.4% of revenue); DSO 37 days (improved -8 days sequentially, -1 day YoY). - Growth was helped by acquisitions and strong APAC delivery center demand; managed services also supported overall momentum.

Bookings/backlog: strong demand, but U.S. Federal shutdown created lumpy quarter - Bookings $4.5B, book-to-bill 110% (commercial/state government strong). - Excluding U.S. Federal, teams delivered a combined book-to-bill of 118%. - SI&C booking strength: SI&C book-to-bill 100% (last at Q1 FY25). - Trailing 12-month: book-to-bill 110%; North America 122%, Europe 101%. - Contracted backlog $31.3B (1.9x revenue)—gives confidence, but U.S. Federal timing risk remains. - Surprising/important detail: >half of bookings were new awards and add-ons, and renewal win rate was >95%, suggesting stickiness beyond just project cycles.

Segment highlights: U.K./Australia step-change; Europe steady; APAC resilient - APAC delivery center: revenue growth +5.8%, mainly managed services. - U.K. & Australia (via acquisition of BJSS): growth +31%; management views BJSS as *transformative*, expanding end-to-end CGI offerings for new clients. - Western & Southern Europe (via Apside): growth +9%, including engineering services. - Negative/pressure point: U.S. operations impacted by the federal shutdown; sequential improvement expected next quarter, but Fed remains dynamic.