CGI (GIB) Q4 2026 Earnings Miss: EPS and Revenue Both Fall 29% Short

CGI closed Fiscal 2026 with its worst quarterly miss in recent memory, reporting adjusted diluted EPS of $1.63 against a consensus estimate of $2.30, a shortfall of roughly 29%. Revenue of $2.92 billion also trailed the $4.13 billion estimate by nearly the same margin, landing about $1.2 billion below what analysts had expected.

The adjusted figures were held back by margin pressure at the operating level, where adjusted EBIT margin slipped 20 basis points year over year to 16.4%, and by a higher adjusted effective tax rate that climbed to 26.6% from 26.0% a year earlier. Those headwinds left adjusted net earnings essentially flat even as aggressive share repurchases reduced the diluted share count by 7.4% year over year.

The GAAP picture looked considerably better. GAAP diluted EPS came in at $2.24, helped by the absence of the restructuring charges that weighed on the year-ago quarter. On the bookings side, CGI posted a book-to-bill ratio of 109.2% on $3.19 billion in bookings, and total backlog grew to $22.58 billion, providing some forward visibility despite the headline miss.

CGI declared a quarterly cash dividend of $0.1303 per share on both Class A and Class B shares, an 8.8% increase, payable December 18 to shareholders of record November 27. The company also repurchased 1,650,700 Class A shares for $166.7 million in the quarter under its Normal Course Issuer Bid, and spent $1,553.1 million buying back 14,164,627 shares over the full fiscal year.

Looking ahead, management provided no numerical guidance for Fiscal 2027. CEO Tim Hurlebaus said the company is "well positioned strategically, operationally and financially to invest in driving both build and buy growth," and noted that advanced enterprise-scale AI is now routinely embedded in client conversations and proposals, with growing client interest in practical quantum computing applications as well.