Stock Track | CGI Group Plummets 5.04% Intraday as U.S. Government Shutdown Hits Business

Stock Track

01/29

CGI Group Inc's stock plummeted 5.04% during intraday trading on Wednesday, following the company's first quarter fiscal 2026 results release.

The sharp decline came after CGI disclosed that its U.S. federal business was negatively impacted by the U.S. government shutdown, which weighed on bookings in the quarter. The company noted that the environment remains highly fluid, with its U.S. federal segment operating in a very dynamic situation.

While CGI reported revenue growth of 7.7% year-over-year, the earnings release highlighted that adjusted earnings before interest and taxes margin was unfavorably impacted by the effects of the shutdown. The company's CEO also commented on challenges with AI implementation, noting that return on AI depends on data quality and that cleaning up data and applications "will take some time" before AI delivers meaningful value.

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