Upside case
Bull case
$164+168.0%
GIB would need investors to value it at roughly 18x earnings — about 12x more generous than today's 7x forward P/E. That requires meaningful multiple expansion on top of continued earnings growth.
Analysis OverviewBuyUpdated Jun 18, 2026
CGI Inc. (GIB) Stock Analysis
Wall Street verdict, consensus price target, and analyst rating breakdown — everything needed to frame the risk/reward at today's price.
Analyst consensus
Buy
Covering
18
analysts
10 bullish · 1 bearish · 18 covering GIB
Strong Buy
0
Buy
10
Hold
7
Sell
1
Strong Sell
0
Consensus Target
$70
+14.2% vs today
Scenario Range
$79 – $164
Model bear to bull value window
Coverage
18
Published analyst ratings
Valuation Context
6.9x
Forward P/E · Market cap $13.3B
GIB price targets
Three scenarios for where GIB stock could go
Current
~$61
Confidence
49 / 100
Updated
Jun 18, 2026
Where we are now
Current · $61
Bear
$79
Base
$125
Bull
$164
Market caseClosest to today
Base case
$125+103.4%
At 14x on FY1 earnings, the base case reflects a reasonable but not stretched valuation. It prices in continued growth without assuming an exceptional setup.
Stress case
Bear case
$79+28.1%
The bear case assumes sentiment or fundamentals disappoint enough to push GIB down roughly 28% from the current price.
Not financial advice. Model confidence reflects internal scenario assumptions, not a guarantee of returns. Past performance does not predict future results.
CGI Inc.
GIB · NYSETechnologyInformation Technology ServicesSeptember year-end
CGI is a global IT and business consulting services firm that provides systems integration, managed services, and technology solutions to enterprise and government clients. It generates revenue primarily through IT outsourcing and managed services contracts — which account for roughly 60% of sales — supplemented by consulting and systems integration work. The company's competitive advantage lies in its deep, long-term client relationships and industry-specific expertise, particularly in government and financial services sectors where switching costs are high.
Market Cap
$13.3B
Revenue TTM
$16.3B
Net Income TTM
$1.7B
Net Margin
10.3%
GIB Revenue and Earnings Performance
Quarterly beat-or-miss track record against analyst estimates, plus forward revenue and EPS outlook for the next two fiscal years.
EPS Beat Rate
50%Exceptional
12 quarters tracked
Revenue Beat Rate
50%Exceptional
vs consensus estimates
Avg EPS Surprise
+0.5%
above Street consensus
Beat / Miss Record
BeatMissLeft = EPS · Right = Revenue
Q3 2025
Q4 2025
Q1 2026
Q2 2026
Last 4 Quarters
EPS beats: 3 of 4Q3 2025
EPS
$1.52/$1.51
Revenue
$3.0B/$4.0B
Q4 2025
EPS
$1.55/$1.53
Revenue
$2.9B/$4.1B
Q1 2026
EPS
$1.51/$1.55
Revenue
$3.0B/$2.9B
Q2 2026
EPS
$1.65/$1.65
Revenue
$3.0B/$3.0B
| Quarter | EPS (Actual / Est) | EPS Surprise | Revenue (Actual / Est) | Rev Surprise |
|---|---|---|---|---|
| Q3 2025 | $1.52/$1.51 | +0.7% | $3.0B/$4.0B | -25.2% |
| Q4 2025 | $1.55/$1.53 | +1.3% | $2.9B/$4.1B | -30.4% |
| Q1 2026 | $1.51/$1.55 | -2.6% | $3.0B/$2.9B | +0.8% |
| Q2 2026 | $1.65/$1.65 | +0.0% | $3.0B/$3.0B | -2.0% |
FY1–FY2 Estimates
Revenue Outlook
FY1
$17.5B
+7.0% YoY
FY2
$18.4B
+5.1% YoY
EPS Outlook
FY1
$8.91
+13.2% YoY
FY2
$9.82
+10.2% YoY
Trailing FCF (TTM)$2.3B
FCF Margin: 13.9%
Next Earnings
July 29, 2026
Expected EPS
$1.66
Expected Revenue
$3.0B
GIB beat EPS estimates in 3 of 4 tracked quarters. A strong delivery record supports forward estimate credibility.
GIB Valuation Snapshot
Current multiples compared to the S&P 500, the company's sector, and its own five-year average.
Relative Value Signal
Cheap versus peers
Fair value est. $92 — implies +49.6% from today's price.
Upside to Fair Value
49.6%
potential upside
Deep DiscountFair ValueVery Expensive
vs S&P 500 Trailing P/E
GIB
11.8x
vs
S&P 500
24.4x
52% discount
vs Technology Trailing P/E
GIB
11.8x
vs
Technology
29.0x
59% discount
vs GIB 5Y Avg P/E
Today
11.8x
vs
5Y Average
14.1x
16% discount
Forward PE
6.9x
S&P 500
18.8x
-63%
Technology
22.3x
-69%
5Y Avg
—
—
Trailing PE
11.8x
S&P 500
24.4x
-52%
Technology
29.0x
-59%
5Y Avg
14.1x
-16%
PEG Ratio
0.99x
S&P 500
1.66x
-40%
Technology
1.51x
-34%
5Y Avg
—
—
EV/EBITDA
6.4x
S&P 500
15.2x
-58%
Technology
16.6x
-61%
5Y Avg
8.8x
-27%
Price/FCF
9.6x
S&P 500
20.7x
-54%
Technology
19.2x
-50%
5Y Avg
12.0x
-20%
Price/Sales
1.2x
S&P 500
3.1x
-62%
Technology
2.4x
-52%
5Y Avg
1.6x
-25%
Dividend Yield
0.69%
S&P 500
1.91%
-64%
Technology
1.11%
-37%
5Y Avg
0.67%
+3%
| Metric | GIB | S&P 500 | Technology | 5Y Avg GIB |
|---|---|---|---|---|
| Forward PE | 6.9x | 18.8x-63% | 22.3x-69% | — |
| Trailing PE | 11.8x | 24.4x-52% | 29.0x-59% | 14.1x-16% |
| PEG Ratio | 0.99x | 1.66x-40% | 1.51x-34% | — |
| EV/EBITDA | 6.4x | 15.2x-58% | 16.6x-61% | 8.8x-27% |
| Price/FCF | 9.6x | 20.7x-54% | 19.2x-50% | 12.0x-20% |
| Price/Sales | 1.2x | 3.1x-62% | 2.4x-52% | 1.6x-25% |
| Dividend Yield | 0.69% | 1.91% | 1.11% | 0.67% |
GIB trades above S&P 500 benchmarks on 0 of 6 measured multiples — appears modestly priced relative to the S&P 500 on most measures.
Forward P/E and PEG reflect analyst consensus estimates. Historical averages use trailing ratios where forward data is unavailable.S&P 500 and sector benchmarks both use trailing median P/E — similar readings indicate the broader index and sector are priced alike.
Open valuation toolGIB Financial Health
Verdict
Strong
GIB generates $2.3B in free cash flow at a 13.9% margin — 19.5% ROIC signals a durable competitive advantage · returns 7.6% of market cap to shareholders annually.
Cash Engine
Revenue, margins, and cash generation
Revenue (TTM)
Trailing-twelve-month sales base
$16.3B
Revenue Growth
TTM vs prior year
+8.0%
Gross Margin
Gross profit as a share of revenue
20.5%
Operating Margin
Operating income divided by revenue
20.4%
Net Margin
Net income divided by revenue
10.3%
EPS (TTM)
Diluted earnings per share, trailing twelve months
$7.87
Free Cash Flow (TTM)
Cash generation after capex
$2.3B
FCF Margin
FCF as share of revenue — the primary cash quality signal
13.9%
Capital Quality
ROIC, leverage, and debt serviceability
ROIC
Return on invested capital — primary competitive quality signal
19.5%
ROA
Return on assets, trailing twelve months
8.7%
Cash & Equivalents
Liquid assets on the balance sheet
$864M
Net Debt
Total debt minus cash
$3.6B
Debt Serviceability
Net debt as a multiple of annual free cash flow
1.6× FCF
~1.6 years to full repayment at current FCF run-rate
ROE
Return on equity, trailing twelve months
16.6%
Shareholder Returns
How capital is returned to owners
Total shareholder yield
7.6%
Dividend
0.7%
Buyback
6.9%
Share Repurchases
Trailing buyback outflow — dollar magnitude of capital returned
$1.3B
Dividend / Share
Annualized trailing dividend per share
$0.60
Payout Ratio
Share of earnings distributed as dividends
8.1%
Shares Outstanding
Declining as buybacks retire shares
217M
All figures from the trailing twelve months. ROIC uses invested capital (equity + net debt).
Open full ratios pageGIB Stock Risk Factors
Key factors that could pressure the stock price, compress the multiple, or weigh on future results.
AI analysis · updated June 18, 2026
Medium
Valuation de-rating
The stock's upside potential is limited, with consensus targets suggesting only +4.7% to +5.2% upside from current levels.
Lower
Market saturation risk
With operations in 40+ countries and 400 offices, CGI may face growth constraints due to its already extensive global footprint.
Medium
Revenue concentration
CGI's heavy reliance on IT and consulting services exposes it to cyclical demand fluctuations in these sectors.
High Risk
Competitive pressures
As one of the largest IT consulting firms, CGI faces intense competition in a rapidly evolving tech services landscape.
Lower
Operational complexity
Managing 94,000 employees across diverse geographies introduces execution risks and cost inefficiencies.
These are risk mechanisms, not predictions. The key question is which would force a cut to earnings estimates or a lower multiple than the market currently prices in.
Why GIB Stock Could Outperform
Structural drivers behind the upside case and why the stock could outperform over the next 12 months.
AI analysis · updated June 18, 2026
Long-standing industry presence
CGI has grown into one of the largest IT and business consulting services firms since 1976, with a proven track record of serving clients globally.
Strategic AI and cloud collaboration
CGI's multi-year partnership with Amazon Web Services aims to accelerate trusted AI innovation and secure cloud adoption, particularly in the U.S. public sector.
Strong financial projections
Analysts project a 12-month price target of $71.95 (9.9% upside) with a Buy rating and +5.2% implied upside, supported by bull/base/bear scenarios.
Diversified global operations
CGI operates in 40+ countries with 400 offices and 94,000 employees, providing application services, business consulting, and IT solutions worldwide.
Property claims database dominance
CGI maintains Canada's residential and commercial property claims database, a critical resource for insurers making daily property insurance decisions.
Growth through acquisitions
A bull case of +7% revenue growth could be achieved via transformative acquisitions, though long-term growth may moderate to +3-5% CAGR due to scale.
A real bull case compounds — each driver matters most when it strengthens margins, supports capital returns, and keeps the company above the market's minimum growth bar simultaneously.
GIB Stock Price Performance
52-week range context and price returns across multiple time horizons. Dividend contribution is shown separately in the Capital Return section.
Current Price
$61.28
52W Range Position
3%
52-Week Range
Current price plotted between the 52-week low and high.
52-Week Low
$59.63
+2.8% from the low
52-Week High
$108.28
-43.4% from the high
1 Month
-5.84%
3 Month
-14.31%
YTD
-32.8%
1 Year
-42.9%
3Y CAGR
-15.9%
5Y CAGR
-7.3%
10Y CAGR
+2.9%
Range context matters because valuation compression and earnings misses rarely hit from the same starting point. A stock already far below its high can still fall, but it is no longer carrying the same embedded optimism as one pressing a fresh peak.
GIB vs Peers
Valuation, growth, and margin comparison against the closest publicly traded peers for this company.
Peer Set
Accurate peer set
Forward PE
6.9x
vs 9.3x median
-26% below peer median
Revenue Growth
+7.0%
vs +5.5% median
+27% above peer median
Net Margin
10.3%
vs 11.4% median
-10% below peer median
| Company | Mkt Cap | Fwd PE | Rev Grw | Margin | Rating | Upside |
|---|---|---|---|---|---|---|
GIB GIB CGI Inc. | $13.3B | 6.9x | +7.0% | 10.3% | Buy | +14.2% |
ACN ACN Accenture plc | $80.3B | 9.4x | +4.6% | 10.7% | Buy | +81.0% |
CTS CTSH Cognizant Technology Solutions Corporation | $20.7B | 7.6x | +6.4% | 10.4% | Hold | +78.3% |
WIT WIT Wipro Limited | $25.0B | 0.2x | +5.5% | 15.1% | Hold | +207.5% |
INF INFY Infosys Limited | $42.9B | 13.9x | +4.0% | 16.2% | Hold | +59.9% |
IT IT Gartner, Inc. | $8.5B | 9.3x | +6.2% | 11.4% | Hold | +38.1% |
This peer comparison reflects companies with similar business models, product lines, or market positioning, supplemented by industry grouping when direct matches are limited.
GIB Dividend and Capital Return
GIB returns capital mainly through $1.3B/year in buybacks (6.9% buyback yield), with a modest 0.69% dividend — combining for 7.6% total shareholder yield.
Dividend SustainableFCF Well Covered
Total Shareholder Yield
7.6%
Dividend + buyback return per year
Buyback Yield
6.9%
Dividend Yield
0.69%
Payout Ratio
8.1%
How GIB Splits Its Return
Buyback 6.9%
Dividend 0.69%Buybacks 6.9%
Dividend Profile
Yield, cadence, and growth quality
Dividend / Share
Trailing annualized cash dividend
$0.60
Growth Streak
Consecutive years of dividend increases
1Y
3Y Div CAGR
—
5Y Div CAGR
—
Ex-Dividend Date
—
Payment Cadence
Quarterly
4 payments over the last 12 months
Buyback Engine
How much per-share support comes from repurchases
Repurchases (TTM)
Cash used for buybacks in the latest trailing period
$1.3B
Estimated Shares Retired
21M
Approx. Share Reduction
9.7%
Shares Outstanding
Current diluted share count from the screening snapshot
217M
At 9.7%/year, buybacks mechanically lift EPS even with flat earnings — each remaining share represents a slightly larger piece of the company.
| Year | Div / Share | YoY Grw | BB Yield | Total Yield |
|---|---|---|---|---|
| 2026 | $0.25 | — | — | — |
| 2025 | $0.44 | +268.2% | 6.4% | 7.1% |
| 2024 | $0.12 | — | 3.8% | 3.8% |
FAQ
7 questionsGIB Investor Questions
Common questions answered from live analyst data and company financials.
01Is CGI Inc. (GIB) stock a buy or sell in 2026?
CGI Inc. (GIB) is rated Buy by Wall Street analysts as of 2026. Of 18 analysts covering the stock, 10 rate it Buy or Strong Buy, 7 rate it Hold, and 1 rate it Sell or Strong Sell. The consensus 12-month price target is $70, implying +14.2% from the current price of $61. The bear case scenario is $79 and the bull case is $164.
02What is the GIB stock price target for 2026?
The Wall Street consensus price target for GIB is $70 based on 18 analyst estimates. The high-end target is $70 (+14.2% from today), and the low-end target is $70 (+14.2%). The base case model target is $125.
03Is CGI Inc. (GIB) stock overvalued in 2026?
GIB trades at 6.9x times forward earnings. The stock currently trades at a discount to the broader market. Based on current multiples versus the peer group, the relative model signals cheap versus peers. Whether the stock is over or undervalued ultimately depends on whether consensus earnings estimates are achievable.
04What are the main risks for CGI Inc. (GIB) stock in 2026?
The primary risks for GIB in 2026 are: (1) Competitive pressures — As one of the largest IT consulting firms, CGI faces intense competition in a rapidly evolving tech services landscape. (2) Valuation de-rating — The stock's upside potential is limited, with consensus targets suggesting only +4. (3) Revenue concentration — CGI's heavy reliance on IT and consulting services exposes it to cyclical demand fluctuations in these sectors. Each factor has the potential to pressure earnings or compress the stock's valuation multiple.
05What is CGI Inc.'s revenue and earnings forecast?
Analyst consensus estimates GIB will report consensus revenue of $17.5B (+7.0% year-over-year) and EPS of $8.91 (+13.2% year-over-year) for the upcoming fiscal year. The following year, analysts project $18.4B in revenue.
06When does CGI Inc. (GIB) report its next earnings?
CGI Inc. is expected to report its next earnings on approximately 2026-07-29. Consensus expects EPS of $1.66 and revenue of $3.0B. Over recent quarters, GIB has beaten EPS estimates 50% of the time.
07How much free cash flow does CGI Inc. generate?
CGI Inc. (GIB) generated $2.3B in free cash flow over the trailing twelve months — a free cash flow margin of 13.9%. GIB returns capital to shareholders through dividends (0.7% yield) and share repurchases ($1.3B TTM).