By Adriano Marchese

CGI posted higher first-quarter profit as rising revenue was boosted by demand for artificial intelligence-related work.

The Canadian IT consulting and business services company on Wednesday posted a rise in net income to 442 million Canadian dollars ($325.6 million), or C$2.03 a share for the period ended Dec. 31, up from C$438.6 million, or C$1.92 a share, in the comparable quarter a year ago.

Adjusted earnings were C$2.12 a share, just above analyst expectations of $2.11 a share, according to FactSet.

Revenue rose 7.7% to C$4.08 billion, coming in ahead of analyst projections of a more modest rise to C$4.05 billion. On a constant currency basis, revenue growth was 3.4%, compared with 2.7%.

Chief Executive Francois Boulanger said the quarter showed that clients are still spending on modernization and outsourced IT work, including projects that use artificial intelligence.

Bookings were C$4.47 billion, representing a book-to-bill ratio of 109.5% or 110.4% on a trailing twelve-month basis, it said. The backlog amounted to C$31.32 billion as of the end of 2025, up from C$29.76 billion a year earlier.

On Tuesday, CGI said it is expanding its partnership with OpenAI, the company behind ChatGPT and other large-scale artificial intelligence models, positioning itself as a major reseller of the company's AI platforms to meet growing demand for enterprise-grade AI.

Write to Adriano Marchese at adriano.marchese@wsj.com

(END) Dow Jones Newswires

January 28, 2026 06:58 ET (11:58 GMT)

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