Fourth Quarter and Fiscal 2018

Investment profile (as of November 2018)

At CGI, our goal is to be recognized as an investment of choice. We have a passion for running a competitive and financially strong business. Since 1976, we've maintained best practices in managing and measuring how we create long-term value, resulting in consistent performance, no matter the economic environment.

Stock overview

  • TSX: GIB.A
  • Fiscal year end: September 30

Company overview

Founded in 1976, CGI is among the largest independent IT and business consulting services firms in the world. With 74,000 professionals across the globe, CGI delivers an end-to-end portfolio of capabilities, from IT and business consulting to systems integration, outsourcing services and intellectual property solutions. CGI works with clients through a local relationship model results. With annual revenue of C$11.5 billion, CGI shares are listed on the TSX (GIB.A) and the NYSE (GIB).   

Q4 & F2018

Q4-F2018 year-over-year highlights

F2018 year-over-year highlights 

  • Revenue of $11.5 billion, up 6.1% or 4.6% in constant currency;
  • Adjusted EBIT of $1.7 billion, or 14.8% of revenue;
  • Net earnings of $1.1 billion, or 9.9% of revenue;
  • Net earnings excluding specific items* of $1.2 billion, or 10.5% of revenue;
  • Diluted EPS of $3.95, up 15.8%;
  • Diluted EPS excluding specific items* of $4.19, up 14.8%;
  • Cash provided by operating activities of $1.5 billion or 13.0% of revenue;
  • Bookings of $13.5 billion, or 117.3% of revenue; and,
  • Backlog of $22.6 billion, up $1.8 billion.

* Specific items

  • Q4-F2018: $14.7 million in restructuring costs and $1.6 million in acquisition-related and integration costs net of tax.
  • Q4-F2017: $65.3 million in restructuring costs and $1.9 million in acquisition-related and integration costs net of tax.   
  • F2018: $73.9 million in restructuring costs, $29.6 million in acquisition-related and integration costs net of tax, and net-tax adjustments of $34.1 million.
  • F2017: $65.3 million in restructuring costs and $6.5 million in acquisition-related and integration costs net of tax. 


Revenue distribution

  • Service type:

52% Systems integration and consulting

48% Management of IT and business functions

  • Client geography:

28%     United States
16%     Canada
15%     France
12%     United Kingdom
  7%     Sweden
  7%     Finland
15%     Rest of the world

  • Vertical markets:

32%   Government
24%   Manufacturing, retail and distribution
22%   Financial services
15%   Communications and utilities
  7%   Health

Competitive strengths

CGI's competitive strengths provide an enhanced value proposition for clients. CGI combines strategic and technical expertise in five high growth vertical markets. It provides flexibility and cost competitiveness through its end-to-end service offerings and global delivery model. It achieves client intimacy through its metro market approach and a strong local presence. It consistently provides high quality service through the application of its management frameworks.

Enhanced value proposition

  • End-to-end IT services
  • Deep industry expertise (five verticals)
  • Unique global delivery model
  • Quality delivery track record
  • Flexible client partnerships

Our Build and Buy profitable growth strategy

Investment profile
Organic growth Growth by acquisitions
Systems integration
contracts and
Niche market
  • Extend service offerings to existing clients
  • Win new contracts and renewals
  • Develop new client relationships
  • Grow pipeline of outsourcing proposals
  • Win outsourcing contracts with new and existing clients
  • Enhance vertical offerings
  • Increase geographic presence
  • Strengthen our solutions portfolio
  • Increase critical mass to qualify for more large contracts
  • Increase geographic presence
  • Ensure strategic fit and accretion to net earnings

Note: All figures in Canadian dollars. Q4-F2018 MD&A, interim condensed consolidated financial statements and accompanying notes can be found at and have been filed with both SEDAR in Canada and EDGAR in the U.S.