Overview

* CGI fiscal Q3 revenue grows 11.4% yr/yr, beating analyst expectations

* Adjusted EPS for fiscal Q3 beats consensus, driven by AI-related services

* Adjusted EBIT for fiscal Q3 exceeds analyst estimates, indicating operational resilience

Outlook

* CGI expects C$100 mln restructuring costs in 2025

* CGI aims for improved profitability amid stable market conditions

Result Drivers

* AI MOMENTUM - Strong momentum in AI-related projects contributed to revenue growth, per CEO François Boulanger

* CAPITAL DEPLOYMENT - Strategic deployment of capital and financial strength fueled revenue increase, according to CGI

* RESTRUCTURING COSTS - Incurrence of restructuring and acquisition costs impacted earnings before income taxes

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Beat C$4.09 C$4.02

Revenue bln bln (10

Analysts

)

Q3 Beat C$2.1 C$2.08

Adjusted (11

EPS Analysts

)

Q3 EPS C$1.82

Q3 Miss C$470.10 C$470.40

Adjusted mln mln (5

Net Analysts

Income )

Q3 Net C$408.60

Income mln

Q3 Beat C$666.10 C$654.30

Adjusted mln mln (9

EBIT Analysts

)

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", no "hold" and 3 "sell" or "strong sell"

* The average consensus recommendation for the it services & consulting peer group is "buy"

* Wall Street's median 12-month price target for CGI Inc ( GIB ) is C$178.00, about 22.7% above its July 29 closing price of C$137.55

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)