CGI: OSG still negative in 3Q25/26

Research evidence excerpt

CGI: OSG still negative in 3Q25/26

29 July 2026

Derric Marcon

+33 1 58 98 06 30

European Technology/Software derric.marcon@bernsteinsg.com

Richard NguyenCGI

+33 1 42 13 54 22

Rating richard.nguyen@bernsteinsg.com

Underperform Specialist Sales

Kiran Shah, CFA

Price Target +44 20 3547 1533

kiran.shah@bernsteinsg.com

GIB/A.CN 150.00 CAD (141.00 OLD)

CGI’s results for 3Q25/26, released Wednesday before market open, held no major

Close Date 28 Jul 2026

surprises. While CGI's operations in the US rebounded, performance in Europe proved weak

GIB/A.CN Close Price (CAD) 100.99

in certain areas. The group continues to highlight the solid growth of its contract opportunity

Price Target (CAD) 150.00

pipeline, but we do not see this translating into a positive surprise regarding order intake.

Upside/(Downside) 49%

Given the negative organic sales growth (OSG) CGI continues to report, we still view its

52-Week Range 142.50/83.32

investment case as less attractive than that of other IT services companies whose valuations

SPX 7,428.78

have fallen more sharply.

FYE Sep

Investment Implications Div Yield 0.6%

Market Cap (CAD) (M) 21,958

That said, consistent with the IT services sector as a whole, our raised price target for CGI

EV (CAD) (M) 25,553

implies absolute upside potential—albeit lower than what we anticipate for its European

competitors—hence our Underperform rating. After updating our estimates and rolling Performance YTD 1M 6M 12M

forward by six months our valuation multiple, we nudge up our PT slightly to CAD150. Absolute (%) (17.2) 16.2 (9.1) (23.6)

SPX (%) 8.5 (0.2) 6.6 16.6

Relative (%) (25.7) 16.3 (15.7) (40.2)

Source: Bloomberg, Bernstein estimates and analysis.

Price Performance, 1YR

C$150 8000

C$140

C$130

C$120 7000

C$110 6500

C$100

C$90

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