Should I Buy CGI Stock in 2025? Expert Guide for Canadian Investors

What is CGI?

How much is CGI stock?

The price of CGI stock is rising this week. As of the latest close, CGI trades at CAD $151.33, marking a 0.50% gain over the past 24 hours and a 2.61% increase for the week. Its current market capitalization stands at CAD $33.96 billion, with a three-month average trading volume of 501,380 shares. The stock’s P/E ratio is 19.86, offering a dividend yield of 0.40%, and it maintains a low beta of 0.65, indicating limited volatility. With this stability and steady performance, CGI continues to attract investors seeking reliable growth in the Canadian IT sector.

Our full analysis on CGI stock

Having carefully reviewed CGI’s latest quarterly results alongside its three-year stock performance, and synthesizing quantitative indicators, technical signals, sector data, and peer analysis through our proprietary models, we find CGI (TSX: GIB.A, NYSE: GIB) to be at a compelling juncture. As one of the most resilient names in global IT and business consulting, CGI demonstrates a robust blend of operational consistency and growth momentum. So, why might CGI stock once again become a strategic entry point into the digital transformation sector in 2025?

Recent Performance and Market Context

Over the past twelve months, CGI’s share price has delivered a respectable +6.40% return on the TSX, markedly outperforming many sector peers during periods of heightened volatility. The stock currently trades at CAD $151.33 (TSX close, May 19, 2025), with the last week alone seeing a firm +2.61% gain—indicating renewed investor confidence following the release of strong Q2 2025 results.

CGI’s Q2 fiscal 2025 report delivered several affirming signals:

• Quarterly revenue rose 7.6% year-over-year to $4.02 billion
• Adjusted EBIT increased 5.9% to $665.7 million (margin 16.5%)
• Bookings surpassed revenue at $4.48 billion (book-to-bill ratio: 111.5%)
• Backlog reached a record $30.99 billion, or 2x trailing annual revenues

These metrics underscore a business benefitting from broad-based client demand, particularly as enterprises and governments continue to accelerate digital transformation initiatives. CGI’s sector—IT services and consulting—remains an essential pillar of modernization across industries, with Canadian and global tailwinds including cloud migration, AI adoption, and increased cybersecurity spending. Against a backdrop of easing inflation in North America and a constructive policy environment for tech investment, CGI’s diversified portfolio seems well-positioned to capitalize on sector growth.

Technical Analysis

From a technical perspective, CGI is exhibiting a structurally bullish profile, offering distinct entry points for different investor horizons. The stock currently trades above its 5-, 10-, 20-, 50-, and 100-day simple moving averages (SMA), all of which signal a buy:

Most notably, the 50-day SMA is well below the current price, confirming medium-term upward momentum and minimizing downside risk for trend followers.

Key oscillators remain mostly neutral but with a slight lean toward consolidation, suggesting a balanced risk environment:

• RSI (14): 61.37 (Neutral zone, not overbought)
• MACD: 1.16 (Marginally negative; possible short-term pause)
• Stochastic Oscillator and ADX: Neutral, reflecting moderate trend strength

Support levels at $107.21 and $106.17 are well-defined, while immediate resistance stands at $108.88 and $109.51. The present technical structure indicates a probable ‘bullish flag’ formation—offering a low volatility window for positional buyers ahead of anticipated catalysts.

Fundamental Analysis

CGI’s fundamental strength is evidenced by disciplined revenue growth, sector-leading profitability, and prudent capital allocation. Key highlights include:

• Revenue (TTM): $15.14 billion, with a Q2 YoY revenue growth of 7.6%, outpacing most peers.
• Adjusted EBIT*: 16.5% margin—demonstrating strong operational leverage in project delivery and managed services.
• Earnings Per Share (TTM): $7.63 CAD; up 7.6% in Q2 adjusted diluted EPS.
• Price-to-Earnings Ratio: 19.9, attractive versus peer averages considering CGI’s consistent growth and risk profile.
• Cash Flow: $438.2 million in Q2 from operations (10.9% of revenue), supporting both organic growth and strategic M&A.
• Backlog: $30.99 billion (2x revenue), providing outstanding long-term revenue visibility.

Furthermore, valuation remains compelling on a risk-adjusted basis:

• PEG and P/E ratios are well below sector highs, while the company’s balance sheet carries a low 24.1% debt-to-capitalization ratio, enabling continued strategic flexibility.

CGI’s innovation agenda—spanning AI, cloud, and cybersecurity—positions it as a partner of choice for public and private sector digital transformation. Its client diversification across banking, public sector, healthcare, and utilities additionally insulates revenue from shocks in any single vertical.

Volume and Liquidity

A robust average daily volume of 501,380 shares on the TSX and 325,668 on the NYSE underlines active market participation and liquidity, which is crucial for both institutional and retail investors. This consistent turnover not only facilitates efficient entry and exit but also reflects institutional conviction in CGI’s prospects.

The float structure—with significant employee ownership—supports valuation dynamism while aligning longer-term interests. This combination of ample liquidity and stable, engaged ownership is particularly attractive as the stock embarks on its next growth phase.

Catalysts and Positive Outlook

Several catalysts underpin CGI’s bullish outlook:

• New CEO, François Boulanger: Following a seamless transition, Boulanger’s 20-year tenure at CGI supports strategic continuity while inviting renewed focus on digital innovation and operational excellence.
• Strategic Acquisitions: Recent takeovers—including UK-based BJSS, Novatec in Germany and Spain, and Quebec’s Momentum Technologies—expand CGI’s digital services footprint and position it to capture additional cross-border demand in high-growth markets.
• Major Contract Wins: Multi-year extensions with major government and enterprise clients (e.g., Colorado Parks and Wildlife, the FAA, Ventura County) illustrate deep client trust and substantial recurring cash flow potential.
• ESG Leadership: CGI’s recognition as the first major digital services company with Sustainable IT Level 2 across Europe and Morocco enhances its competitive edge for ESG-conscious clients and investors.
• Industry Tailwinds: The uptrend in AI, automation, cybersecurity, and cloud projects is accelerating, driven by relentless digitalization across clients’ industries—further supported by pro-tech regulatory frameworks, particularly in North America and the EU.

Collectively, these factors suggest an environment conducive to above-trend revenue and margin expansion, with additional upside potential from integration efficiencies as acquisitions mature.

Investment Strategies

CGI offers a spectrum of entry strategies on both shorter- and longer-term horizons:

• Short-Term:
• Entering at current levels—just above support ($107.21–$108.88)—leverages recent technical strength and visibility on upcoming contract news or macro data that could catalyze a breakout.
• The minor consolidation phase indicated by oscillators presents an opportune moment for tactical accumulation.
• Medium-Term:
• As CGI integrates recent acquisitions and progresses through its European restructuring, investors can potentially benefit from improved EBIT margins and sustained revenue growth.
• The sustained backlog, robust book-to-bill ratio, and consistent cash generation make it suitable for medium-term holds, especially ahead of the next quarterly results.
• Long-Term:
• The $30.99 billion backlog, sector leadership in digital transformation, ongoing innovation in AI/cloud practices, and ESG credentials all point to multi-year compounding potential.
• For investors seeking lower volatility than typical in the tech sector, CGI’s 0.65 beta and modest but growing dividend create an attractive long-term risk-adjusted profile.
• Strategic positioning ahead of further regulatory trends (in AI ethics, data sovereignty, green IT) may provide a secular lift.

Well-timed entries around current technical pivots, or ahead of visible catalysts (such as new contract or M&A announcements), align with both active and buy-and-hold strategies.

Is it the Right Time to Buy CGI?

Summing up, CGI stands at the confluence of robust fundamentals, technical resilience, proactive innovation, and a rich pipeline of growth catalysts. The stock’s attractive valuation, sector-leading backlog, and clear operational momentum create conditions that more than justify renewed investor interest at these levels—especially for those seeking sustained exposure to the digital transformation megatrend with a uniquely Canadian leadership pedigree.

While the sector remains competitive, CGI’s deep client relationships, conservative financial management, and expanding global reach offer significant downside protection and compelling upside in a supportive macroeconomic and technological context. The recent leadership transition, strengthening acquisition pipeline, and disciplined execution further suggest CGI could be entering a new bullish phase.

For investors looking to participate in the next wave of value creation within IT consulting and digital services, CGI seems to represent an excellent opportunity—combining stability, growth, and innovation in a single, liquid Canadian asset. The current market structure and future-facing operational strategy make this a moment well worth considering for a strategic portfolio addition.

CGI’s blend of enduring fundamentals, adaptive leadership, and strong sector momentum signals a window of opportunity that could reward forward-thinking investors throughout 2025 and beyond.

How to buy CGI stock in CA?

Buying shares of CGI Inc. (GIB.A on the TSX) online is straightforward and secure when you use a regulated Canadian broker. Today’s investors can select between two main methods: buying shares outright (also known as spot or cash buying) or trading via Contracts For Difference (CFDs). Both options can be accessed through user-friendly platforms that offer transparency, investor protection, and quick settlement. While spot buying gives you direct ownership, CFDs allow you to trade with leverage and flexibility. Not sure which approach suits you? You’ll find a detailed broker comparison farther down the page to help you make your choice.

Spot Buying

With spot (or cash) buying, you purchase actual CGI shares listed on the Toronto Stock Exchange and become a partial owner of the company. Your shares are held in your name, typically within your brokerage account. Canadian brokers generally charge a fixed commission per order, often around $4.95 to $9.95 CAD.

Example

Suppose CGI’s share price is $151.33 CAD. With a $1,000 CAD investment and a $5 brokerage fee, you could buy approximately 6 shares:
($1,000 - $5 fee = $995; $995 ÷ $151.33 ≈ 6.58, rounded down to 6 shares).

✔️ Gain scenario

If the share price rises by 10%, your 6 shares would be worth $1,000 × 1.10 = $1,100.
Result: +$100 gross gain, or +10% on your initial investment.

Trading via CFD

CFD trading allows you to speculate on CGI’s share price movements without owning the underlying shares. CFDs are derivative contracts offered by online brokers, often with flexible leverage. Instead of commissions, you’ll typically pay a spread (the difference between buy and sell prices), and overnight financing fees if you hold positions beyond a day.

Example

You open a $1,000 CAD CFD position on CGI shares, using 5x leverage. This gives you effective market exposure of $5,000.

✔️ Gain scenario

If CGI’s share price rises by 8%, your position would gain 8% × 5 = 40%.
Result: +$400 gain on your initial $1,000 (excluding spreads and financing costs).

Final Advice

Before investing, always compare brokers’ fees, available markets, and account features, as costs and conditions can vary widely. Spot buying is suitable for those seeking straightforward, long-term investment and dividend eligibility, while CFD trading appeals to more active investors seeking short-term moves and leverage. Your ideal approach depends on your goals, risk tolerance, and investment horizon. For tailored comparisons, see the broker comparator available further down this page.

Our 7 tips for buying CGI stock

The latest news about CGI

CGI’s Q2 2025 results showed robust growth with revenue up 7.6% year-over-year and a strong bookings ratio. For the quarter ending March 31, 2025, CGI achieved $4.02 billion in revenue and $429.7 million in net earnings, reflecting not only resilient demand for its IT and consulting services but also positive momentum with a 111.5% book-to-bill ratio and a backlog at two times annual revenue. The solid 7.6% EPS growth and sustained cash flows underscore financial strength and adaptability, attributes that bolster its appeal for Canadian investors seeking stability amid global economic uncertainties.

The stock has outperformed the broader market in Canada over the past week, gaining 2.61% on the TSX, supported by technical momentum. Bucking the generally mixed sentiment across the technology sector, CGI has traded above key short and medium-term moving averages (5-100 day), indicating investor confidence and positive price trends. With a current price of CAD $151.33 and tangible support at technical levels, the stock’s medium-term outlook is reinforced, although some oscillators suggest temporary consolidation ahead.

CGI continues to expand its footprint through acquisitions, notably growing its presence in Québec and enhancing its digital capabilities. The acquisition of Momentum Technologies, based in Québec City, significantly strengthens CGI’s local market expertise and its offerings in business intelligence and data solutions, positioning the company favorably amid accelerating digital transformation needs within Canada. These strategic moves not only expand the company’s addressable market but also signal its capacity to integrate innovation and regional talent, supporting long-term organic and acquisitive growth in core markets.

The leadership transition and steady governance structure add confidence for strategic continuity and operational stability. With François Boulanger taking the reins as President and CEO in October 2024 after over two decades with CGI, the transition is seen as seamless, upholding the company’s growth-oriented and client-centric culture. The presence of experienced leaders, such as Executive Chair Julie Godin and founder Serge Godin, reinforces governance continuity—a significant consideration for institutional investors focused on management quality and stability within Canadian enterprises.

CGI remains committed to sustainable practices, being the first major digital firm to achieve the Sustainable IT label—Level 2. This recent ESG milestone demonstrates CGI’s proactive approach to sustainability, aligning with growing environmental, social, and governance expectations among Canadian market participants and supporting the company’s reputation as a responsible corporate citizen. Such recognition enhances appeal to both domestic and international investors integrating ESG criteria into their decision frameworks.

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P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.