Unexpected CEO Transition

Research evidence excerpt

Unexpected CEO Transition

May 12, 2026 | 09:19 ET~

CGI IT Services

Thanos Moschopoulos, CFA Analyst

thanos.moschopoulos@bmo.com (416) 359-5428

GIB.A-TSX Rating Price: May-11 Target Total Rtn

GIB.A-NYSE Outperform $89.43 $112.00 26% Stephen Machielsen, CFA VP Associate

stephen.machielsen@bmo.com (416) 359-5513

Sagar Karri, CPA, CA, CFA Senior Associate

sagar.karri@bmo.com (416) 355-9083

Legal Entity: BMO Nesbitt Burns Inc.Unexpected CEO Transition

Bottom Line:

CGI announced that Tim Hurlebaus has been appointed president & CEO effective 2YR Price Volume Chart

immediately, succeeding François Boulanger, who will be retiring. Mr. Boulanger 200

had been appointed to the role in October 2024. Mr. Hurlebaus began his career as a 180

developer and consultant and had most recently served as president & COO for CGI U.S., 160

U.K. and Australia (~50% of revenue). We've previously spent time with Mr. Hurlebaus 140 3

and expect him to be highly effective in his role. 120 2

100 1

Key Points 80 Nov May Nov May 0

LHS: Price (C$) / RHS: Volume (mm) Source: FactSet

• Mr. Hurlebaus joined CGI through its 2004 acquisition of AMS, a U.S. IT services

provider focused on the federal government sector. In this respect, as well as

having started as a developer/consultant, he shares a similar background with

George Schindler, CGI's CEO from 2016-2024.

• The CEO transition was unanticipated given that Mr. Boulanger was still early

in his tenure. CGI didn't provide a specific reason for the management change.

While one might point to the weakness in the share price and organic growth

challenges under Mr. Boulanger's tenure, this dynamic has hardly been unique

to CGI.

• We believe the industry transformation being brought about by AI may have

prompted CGI's founder and board to conclude that Mr.