This article was written by a human. Here’s how to tell.
CGI, one of Canada’s largest IT consulting firms, closed its fiscal first quarter with fee income of 3.2 billion Canadian dollars.
That figure represents a 4.4% increase from the same time a year ago, a good result given the headwinds facing certain parts of the enterprise tech sector.
CGI has more than 90,000 employees worldwide who help corporations and government agencies adopt new technologies. They also provide other types of consulting offerings such as managed services, which allow a company to offload some of its IT department’s workload to CGI.
To boost its margins, the Canadian consultancy has also moved into the prepackaged software market in recent years. It sells a software suite that lets enterprises use machine learning to automate repetitive manual chores for employees. CGI has also built prepackaged applications optimized for specific verticals such as the financial sector.
Commenting on CGI’s first quarter growth, CEO George Schindler commented said that “CGI’s outcome-based offerings, particularly those focused on generating cost savings and accelerating modernization—including through AI—continue to resonate with clients. Our robust balance sheet, further strengthened in the quarter by the operational and delivery excellence of our team, enables us to continue driving our build and buy profitable growth strategy.”
The firm improved not only its revenue but also its bottom line in the first quarter. CGI closed the books with adjusted EBIT of $584.2 million, up 5.4% on an annualized basis. This growth drove an even bigger 10.2% increase in CGI’s adjusted EPS, which reached $1.83.
That EPS figure excludes several big expenses the firm incurred in the first quarter. It spent about $35 million on a cost reduction program meant to boost its profits. Additionally, CGI spent $1.7 million to sort out the practical details of the acquisitions it has made in recent quarters.
Another highlight of CGI’s first quarter report was that new client bookings, an indicator of future growth, reached $4.2 billion. This is 14% higher than the total fee income the firm generated in the quarter, which implies its sales growth could accelerate over the coming months.