CGI Group Inc. shares soared 5.03% in intraday trading on Wednesday, staging a sharp reversal after initially dipping in pre-market activity. The rally came as investors digested the company's fiscal third-quarter results, which while slightly below analyst estimates, showcased robust year-over-year growth and a healthy business pipeline.

Prior to the opening bell, the stock had been down 1.8% after CGI reported adjusted earnings per share of CA$2.29 on revenue of CA$4.19 billion, narrowly missing FactSet consensus estimates of CA$2.32 and CA$4.23 billion, respectively. However, sentiment shifted quickly as the market focused on the underlying strength of the report. Net earnings surged 13.8% year-over-year to CA$465.2 million, while diluted earnings per share jumped 22.5% to CA$2.23. The company also highlighted strong cash generation, with cash provided by operating activities reaching CA$604.5 million, or 14.4% of revenue.

Further bolstering confidence was CGI's solid backlog of CA$31.79 billion, representing 1.9 times annual revenue, and a trailing twelve-month book-to-bill ratio of 108.1%. President and CEO Tim Hurlebaus emphasized the company's positioning to meet client demand and its profitable growth momentum, noting that strong government sector awards contributed to the robust bookings. The results, coupled with the company's ongoing share buyback activity, appeared to outweigh the modest headline miss, driving the sharp intraday rally.