CGI Inc.

Solid Q3 results + steady profitability (good): CGI reported C$4.2B revenue in Q3 FY2026 (+2.5% YoY, +1.3% ex-FX). Adjusted EBIT C$682M (+2.3% YoY) for a 16.3% margin. GAAP net earnings C$465M (margin 11.1%), diluted EPS C$2.23 (+22.5% YoY on a GAAP basis; adjusted diluted EPS C$2.29, +9% YoY). - Cash generation (good/surprising): C$605M cash flow in the quarter (14.4% of revenue). Trailing-12-month cash on a very strong 15.8% of revenue, and DSO 43 days (flat YoY).

Bookings/backlog look healthy with full-year momentum (good): Q3 bookings C$4.2B with book-to-bill 100% overall; U.S. Federal 115%, Germany 114%. Trailing-12-month bookings C$17.8B with book-to-bill 108%. Contracted backlog C$31.8B (~1.9x revenue), and ~C$12B of already-contracted revenue to be realized over the next 12 months (+5% vs Q2). - Managed Services specifically strong (good): Managed Services book-to-bill 115% (with management noting step-growth timing), while SI&C book-to-bill 100%.

AI-driven demand is real, but ramp timing matters (opportunity + nuance): Management said enterprise AI demand is shifting from experimentation to operationalization with faster ROI expectations, and clients increasingly want fewer strategic partners and guidance on governing AI economically and securely. - Demand indicators (opportunity): Managed Services wins trailing 12 months: C$10.3B, +5%, book-to-bill 115%. Proposals pending decisions have more than doubled, and their total contract value is >50% higher vs. a year ago. - Pipeline growth (surprising/positive): Total pipeline of AI-embedded opportunities is now ~C$10B, ~double vs last year; total pipeline over next 12 months up >10% YoY, with Managed Services +20% and SI&C +30%.