CGI’s adjusted earnings per share rise 8.5% as share count falls
CGI’s quarterly adjusted profit barely grew. A smaller share count lifted per-share earnings, while lower charges drove the larger reported profit gain.
CGI’s fourth-quarter adjusted earnings per share rose 8.5%, although adjusted net earnings increased just 0.8%. A 7.4% decline in the diluted share count explains much of that gap. Nearly unchanged adjusted earnings were spread across fewer diluted shares.
The IT and business consulting company’s November 11 results also showed revenue rising 3.3% to C$4.15 billion. Reported net earnings under International Financial Reporting Standards climbed 20.8% to C$460.7 million.
Those growth rates answer different questions. Revenue shows how much business CGI recorded. Total profit shows what remained after costs. Earnings per share also reflects how many shares divide that profit. Reading the last figure alone makes it easy to overstate the improvement in the business.
A smaller share count changes the result
| September quarter | 2026 | 2025 |
|---|---|---|
| Adjusted net earnings | C$475.360 million | C$471.716 million |
| Diluted average shares | 205.5 million | 221.9 million |
| Adjusted diluted EPS | C$2.31 | C$2.13 |
CGI spent C$1.55 billion during fiscal 2026 on share repurchases and related tax. Repurchases can improve each remaining shareholder’s participation in future earnings. That is a legitimate use of capital, but it should be evaluated alongside the price paid and the cash needed to run and expand the company. A shrinking share count cannot establish stronger demand or better project economics.
Lower charges explain the larger profit jump
CGI’s after-tax restructuring and acquisition-related adjustments fell from C$90.4 million to C$14.6 million. Its adjusted earnings measure excludes those costs and is not standardized under IFRS.
Using the release’s detailed reconciliation, TrendyVest calculates that the reduction in adjustments explains about 95% of the increase in reported net earnings. The comparison had a much lighter charge burden. It does not follow that the improvement is meaningless, or that adjusted profit is the uniquely correct measure. Lower costs can benefit shareholders even when the previous year was unusually expensive.
What managed-services bookings show
Management highlighted a 122% book-to-bill ratio for managed services. The company-wide ratio was 109.2%. This compares contract bookings with revenue for the period. The managed-services figure covers managed IT and business-process services, not a separately disclosed AI revenue stream.
Contracts matter because they can replenish future work. They still have to become revenue at an acceptable margin. For CGI, the stronger case for operating momentum would be faster growth in total adjusted earnings alongside that conversion. This quarter’s per-share improvement is already visible. The acceleration in total adjusted earnings remains to be demonstrated.
Source notes: CGI’s issuer-distributed release was published November 11, 2026, at 6:30 a.m. Eastern. Quarterly comparisons cover the three months ended September 30. Figures are Canadian dollars unless stated otherwise. CGI trades as GIB on the NYSE and GIB.A on the TSX. Calculations use the release’s unrounded tables; displayed EPS growth follows CGI’s rounded figures.