CGI Seeks Approval to Buy Back 18.98M Shares, 115K-Daily Limit
CGI’s board authorized renewal of its Normal Course Issuer Bid, pending TSX approval, to repurchase up to 18.98 million Class A shares (10% of its 189.8 million public float) with a daily TSX limit of 115,216 shares (25% of 460,867 ADTV). Under the current program, 12.95 million shares have been cancelled.
1. Board Authorizes Renewal of Normal Course Issuer Bid
CGI’s Board of Directors has approved a proposal to renew its Normal Course Issuer Bid, pending Toronto Stock Exchange approval. The renewed program would allow the company to repurchase and cancel up to 18,975,360 Class A subordinate voting shares—approximately 10 percent of its public float as of January 23, 2026—from February 6, 2026 through February 5, 2027. Daily purchases on the TSX will be capped at 115,216 shares, or 25 percent of the six-month average daily trading volume of 460,867 shares. All repurchases will be executed at market price on-exchange or at a discount off-exchange under applicable exemption orders, with all acquired shares to be cancelled immediately. Under the current program, which runs through February 5, 2026, CGI has repurchased 12,945,271 shares at a weighted average price of $133.10 for total consideration of $1.72 billion.
2. Outstanding Shares and Public Float
As of the market close on January 23, 2026, CGI had 190,635,136 Class A shares outstanding, of which 189,753,602 shares (99.54 percent) were widely held. The renewal NCIB would target up to 10 percent of that public float. In connection with the bid, CGI has also implemented an automatic share purchase plan to permit share buybacks during self-imposed blackout periods, enhancing flexibility for opportunistic repurchases.
3. Q1 Fiscal 2026 Revenue and Profit Growth
In the first quarter of fiscal 2026, CGI reported revenue of $4.08 billion, up 7.7 percent year-over-year (3.4 percent in constant currency). Earnings before income taxes climbed 1.4 percent to $599.8 million, yielding a margin of 14.7 percent. Adjusted EBIT rose 7.1 percent to $655.1 million, for a margin of 16.1 percent, despite a 10 basis-point margin contraction from the prior year.
4. Cash Generation, Bookings and Balance Sheet Trends
CGI generated $871.9 million of operating cash, representing 21.4 percent of revenue, a record quarterly cash conversion rate. Bookings totaled $4.47 billion, delivering a book-to-bill ratio of 109.5 percent (110.4 percent on a trailing-twelve-month basis), and backlog stood at $31.32 billion, or 1.9 times annualized revenue. As of December 31, 2025, net debt was $3.45 billion (net debt-to-capitalization of 25.7 percent), up from $1.57 billion a year earlier, driven by senior note issuance in March 2025 and share repurchases under the NCIB.