Good morning, ladies and gentlemen. Welcome to CGI's Fourth Quarter Fiscal 2026 (sic) [ 2025 ] Conference Call. I would now like to turn the meeting over to Mr. Kevin Linder, SVP of Investor Relations. Please go ahead, Mr. Linder.

Thank you, Joelle, and good morning. With me to discuss CGI's fourth quarter and fiscal 2025 results are Francois Boulanger, our President and CEO; and Steve Perron, Executive Vice President and CFO. This call is being broadcast on cgi.com and recorded live at 9:00 a.m. Eastern Time on Wednesday, November 5, 2025. Supplemental slides as well as the press release we issued earlier this morning are available for download along with our fiscal 2025 MD&A, audited financial statements and accompanying notes, all of which have been filed with both SEDAR+ and EDGAR. Please note that some statements made on the call may be forward-looking. Actual events or results may differ materially from those expressed or implied, and CGI disclaims any intent or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. A complete safe harbor statement is available in both our MD&A and press release as well as on cgi.com. We recommend our investors read it in its entirety. We are reporting our financial results in accordance with International Financial Reporting Standards, or IFRS. As always, we will also discuss non-GAAP performance measures, which should be viewed as supplemental. The MD&A contains definitions of each one used in our reporting. All of the dollar figures expressed on this call are Canadian, unless otherwise noted. Now I'll turn the call over to Steve to review our Q4 financials, and then Francois will comment on our full year performance and business and market outlook. Steve?

Thank you, Kevin, and good day, everyone. In our fourth quarter of fiscal 2025, we continue to demonstrate discipline in the management of our operation while effectively executing on our strategy of deploying capital to generate superior long-term return on investment for our shareholders. This starts with our profitable SI&C offering that we grow organically and/or with M&A. Second, to bring our managed services and IP offering to existing or new clients to help them be more efficient. This offering resonates strongly during this more challenging economic period. Finally, our strategy focused on investing in CGI with our share buyback program to increase our EPS while returning cash to our shareholders. In the quarter, we delivered $4 billion of revenue, up 9.7% year-over-year or up 5.5% when excluding the impact of foreign exchange. Growth was driven by our recent business acquisition and continued demand for our APAC delivery centers with this segment reporting growth of 6.4%. There was also some planned runoff of lower margin work from recent acquisitions. In our U.K. and Australia segment, with our acquisition of BJSS, growth was 28%. This acquisition adds further scale to our U.K. operations, and we can now showcase the breadth of CGI's end-to-end services to new clients. Across our U.S. segments, combined growth was 5.7%, primarily driven by our Aeyon and Daugherty merger investments, and our pipeline of opportunities continues to increase as we bring our managed services, IP and offshore delivery capabilities to our new client relationships. IP remained steady sequentially at 20.5% of our total revenue, even as we add a larger proportion of non-IP revenue from recent business acquisitions. The vast majority of our IP continues to be delivered through recurring revenue streams. Bookings in the quarter were close to $4.8 billion for a book-to-bill ratio of 119%,…

Thanks, Francois. Joelle. We can now poll for questions.

[Operator Instructions] Your first question comes from Thanos Moschopoulos with BMO Capital Markets.

Maybe starting off on the federal side, I guess, putting aside the shutdown, based on the bookings you saw in the September quarter and based on revenue trends heading into the shutdown, does that change your level of optimism or pessimism with respect to how the federal business should do over the next year once the government reopens? François Boulanger: Well, I think you saw the booking at the last quarter, 185%. So it was a very good booking, very happy to see that. I think at a certain point, the federal government needs to spend in IT. And that's what we were seeing. We were seeing a lot of momentum on the procurement side. But naturally, with this shutdown, that stopped for -- in October. So -- but when this will reopen, we think that growth will be there because they need to spend, and that's what we were seeing in the summer time frame.

Great. And with respect to the AI discussion, is there any way for us to think about the potential margin uplift you may already be capturing or that you might be able to capture over the next year or 2 as you adopt AI and to what extent you'll be able to get that benefit internally versus having to pass it on to customers? François Boulanger: Yes. So two things. For sure, like we were saying in -- we're using a lot of AI in our managed services today. So that's helping us to give the benefit to our clients and win new business on that side and improving at the same time our margin because we are outcome-based basis most of the time with these clients. The second thing also when I'm talking about what are we doing internally with client zero to some point. So we will invest and we invest and we continue to invest, for example, in Agentic AI to optimize some processes. So expectation is that we would see even the SG&A -- CGI SG&A improving in the future with these automations.

Your next question comes from Robert Young with Canaccord Canada.

First question, you noted that the default for CGI is outcome-based pricing. If you could just narrow down in on that. Is that like as it relates to managed services? Or is it the consulting business? I noted some of your peers are highlighting pricing pressure. And so is this something that is a protection for CGI as it relates to pricing pressure? Can you just expand on that and how it compares to some of the peers in the IT services industry, that would be very helpful. François Boulanger: Yes. Thanks, Robert, for the question. So for sure, on the consulting side, that's mostly time and material. And so that will continue in the future. And again, the fact that we have the expertise and especially on the AI side, the right expertise, people are looking for that expertise. So while pressure, you'll always have pressure on pricing, when you have the right people and the right value to bring to the clients, the price is the second lever and not the first. As for SI&C, we have what, perhaps 40%, 50% of our SI&C business or SI, sorry, business where it's fixed price. So using, again, some of these AI tools is helping us to increase the profit or the margin on our projects while hitting the right price tag or the price point for the client. So that's what we see in the SI side. And actually, on managed services, our majority of managed services contracts are outcome-based. And so again, it's a negotiation of having it at the right price point for the client. And after that -- and the percentage of savings that they want. And after that is to work on producing that saving and producing our margin needed. So we -- while like I'm saying, we're seeing the pressure every day, the fact that we're outcome-based is an easier way of producing the value for the client and having the right level of profitability for us.

Okay. My second question would be around the comment around higher revenue per employee. I think you said it was 5% and that it would improve or that, that trend would continue. If you could expand on that, is that being driven by AI? Or is it maybe better the growth in APAC and the addition of Poland? Maybe you just talk about where that revenue per employee growth is expected to come from and how it flows down to the operating margins. François Boulanger: For sure, with the use of AI, we would expect that this revenue per employee will continue to go up because, again, these tools are helping our clients to deliver more with their same time. So that will help us to deliver more opportunities to our clients. So that's how we were looking at it. for sure, the fact of using India, an example, Poland will also contribute to this. But I would say that AI will be also a big factor in this.

Your next question comes from Jerome Dubreuil with Desjardins.

The first one is on the forecasting power that bookings bring. Historically, it has been a bit uneven and obviously, 119% book-to-bill is very strong. So I'm wondering if M&A has an impact on the book-to-bill or if there's some sort of organic book-to-bill that you can share? I appreciate that your strongest booking deal is U.S. Federal and no M&A there, but if you can comment, please? François Boulanger: Yes. But M&A by itself won't touch the booking because, again, when we're actually doing the acquisition or the merger, we are looking at their backlog, and that backlog is included in our backlog, and it's not going through the book-to-bill ratio. So we are starting to include the wins of these acquisitions at the date that we actually closed the deal. So the before is actually put in the booking -- in the backlog and not in the bookings. But on the other hand, the fact that we have these acquisitions, example, BJSS, it's helping to accelerate some of our discussion, example, on the managed services side. And we have a lot of clients of BJSS that we were capable of bringing them to India, for example, and we did the same thing with Daugherty, and to see our capabilities in the managed services side, and that's triggering some bookings on that side. But that's, again, after the acquisition and not before the acquisition, Jerome.

Awesome. That's great color. Second one, I think it was excellent. The prepared remarks were very good in terms of what you're doing to -- in AI. If you can please maybe communicate because the market apparently thinks that there's going to be an impact from AI that it's going to be automating a lot of the implementation processes that you're exposed to. So I'm wondering if you -- what you're telling investors that are concerned by that or if you have data on whether implementation processes can or can't be automated with AI? François Boulanger: Yes. Jerome, like I said in the text, we are seeing some savings. We are seeing some automation. And again, we are applying them in our day-to-day operations and to help our clients to achieve the savings. At the same time, we are dealing with very complex clients, banks with -- where they have thousands and thousands of applications, interfaces, and that needs to be managed, and that still need to have people working on that. And so AI will bring some savings, but you'll still need to have people to manage all that. And we are living in a complex world, and you need people to manage that complexity. That said, it will bring some savings. And naturally, by bringing these savings to clients, it will create new demand. And you'll see more, I think, more people will look at managed services and looking at specialists and people like us to help them in managing their infrastructure, managing their IT solutions, IT applications and bringing savings to them. So we're seeing that demand will go up for that reason. And all the savings that they can have also on the running of the application, we are seeing that they'll reinvest it back in their -- in systems and new systems. We don't see IT budget going down from clients. They will do more with the same amount or the same budget, but they won't go down. And they'll still need help from specialists like us who is investing a lot in AI, in our people, in our processes to help them succeed.

Your next question comes from Stephanie Price with CIBC.

Thanks for the color on CGI's AI strategy. I was hoping you could maybe dig a little bit deeper into the partnership strategy and talk a little bit about who your largest and fastest-growing partners are and how you kind of see that partnership strategy evolving over time? François Boulanger: Yes. Well, again, like I said, we have partnership with all of them. And the reason is, is that depending on the region, depending of the industry, some partners are better than others to work with. And also, sometimes it's a choice of a client. So that's why we are talking to all of them. You saw also the announcement that we did this week with Snowflake and ServiceNow and UiPath, where we move up in their evaluation. So we are working with all of them, and we will continue. So we don't have any preference for 1 or 2 of them.

Okay. And then you mentioned some planned runoff of lower-margin work from recent acquisitions in the prepared remarks. Just hoping you could quantify that or -- and then talk a little bit about if you expect it to continue into future quarters.

Look, it's Steve here, Stephanie. Thank you for the question. in each M&A, as you well know, CGI, we are working for profitable revenue. We want to make sure that when we are taking a risk in the revenue, we are getting rewards and we are getting the profit out of it. So obviously, when we are looking at M&A and integration of company, we are looking at all the projects that they have. And some projects are not to our expectation in terms of return in order to be rewarded for all the good work we're doing. And because of that, sometimes we are reducing the activity that we do for some projects. In terms of the volume, it won't be a material one. And usually, you will see that in the first year after the acquisition. François Boulanger: But that said, I just want to reiterate, we are seeing a lot of synergy by putting these acquisitions together. Like I was saying, a lot of visits to our Asia Pac from these clients. And we will see some longer-term contracts signed with these clients. I'm convinced. We see a very good momentum on that.

Your next question comes from Surinder Thind with Jefferies.

Francois, can you maybe talk about just the demand trends within SI&C? It seems that, that part of the business continues to struggle at this point. François Boulanger: Yes. It depends of the area. For sure, on the AI side, a lot of demand, a lot of consulting on that side and more and more implementation. I think the pure business consulting, that's still some struggle and especially in places like in France. But I would say that on everything that's related to AI, yes, it continues to be pretty in demand. So it's really depending on the demand, but I would agree that the business consulting is still pretty flat, if I can say.

Just a clarification, I guess, is the idea that we should expect the current growth rates organically to kind of continue? Do you see improvement here? It just seems like it's hard to get a picture of where exactly things are, I guess, and how they're trending on an organic basis. François Boulanger: Yes. As you know, we're not splitting organic versus inorganic, and it's very tough to do it because, again, when we are integrating these companies, it's tough to understand what's coming from the old -- from the acquisition versus the legacy CGI, if I can say. And like I was saying, we are seeing good momentum on having both together and winning new services. As for example, for sure, I talked about the federal side. And again, we have a temporary headwind this or next quarter related to this. And so that's one thing that -- yes, it will be tougher in the federal side the first quarter. But if everything is going well and we can see end of the shutdown, we're expecting to bounce back in the second quarter.

That's helpful. And then just on the M&A side, just any color or commentary on just the pipeline of deals, whether you might be closer on more deals? Or how do we think about what you've done in the past 1.5 years versus maybe how you're thinking about what's coming in the next 12, 18 months? François Boulanger: Thanks. That's a good question. For sure, we're seeing a lot of momentum on that side. We just -- like I said, we closed Comarch. We're still waiting for some approvals, but we're expecting really the formal close to happen in the next couple of weeks. And we are talking with a lot of other potential acquisitions. The evaluation went down. And so we need to take advantage of this environment, and we will continue to be aggressive on that level. We had a good 2025. And for sure, we need to dance. But like I'm saying, we have a lot of opportunities, and we think we'll be able to close some of them in 2026.

Got it. So it sounds like just on -- just to clarify the last comment, it sounds like with valuations down, you're willing to be a bit more aggressive on the M&A front? François Boulanger: For sure, because the demand are -- when before we were talking about, I don't know, people wanted to have 2 and 2x and more on the revenue. This evaluation went down a lot lower. I mean now we're talking 1 to 1.5x revenue. So it's in our sweet spot. So that's why we think that we will be very aggressive on that. Like I was saying, the environment, it's a fantastic environment for that level. It's good also for managed services, like I'm saying, we are in an environment where people want to have savings. So managed services is the way. And I'm saying on the evaluation side for acquisition, they went down. So it's a good -- very good opportunity time for us.

Your next question comes from Paul Treiber with RBC Capital Markets.

Just a follow-up question on the M&A environment. The question is, how are you evaluating AI readiness and risks with M&A targets? Is it something that you're proactively looking at in your due diligence? Or is it less at the forefront? François Boulanger: Again, we -- our strategy on M&A, like I always said in the past, we're really focused on buying relationship, client relationship. And that's a focus we will continue, especially in places like in the U.S. Like I said in the past, several places, metro markets or region in the U.S. were still underrepresented. So we want to have more -- so Chicago and the West Coast, for example, are good places where we're looking for potential acquisition for -- like I'm saying, to build a new relationship and client relationship. But for sure, expertise like AI expertise is also very important, and we are looking at it. And I'll give you the example. BJSS was one that you had a lot of AI expertise. And so that's one thing that we will also look in the potential merger, what kind of AI expertise that they have because, again, that's what is in demand today.

And secondly, the Canadian federal budget came out last night and the government is making or plans to make a number of large investments. Can you elaborate on CGI's footprint with the Canadian federal government and what you see as opportunities for CGI's growth with the federal government going forward? François Boulanger: For sure. That's a great question, Paul. And yes, when you're reading the budget and the initiatives that they want to do, we see a lot of potential where we can help them, right? The first one is sovereign cloud. So they want to create a sovereign cloud. So that will have a lot of work to bring activities from public cloud and data from public cloud and solution from public cloud to their sovereign cloud. So a lot of exercise, a lot of work that will need to be done there. They want to do -- they want to have a more efficient government. So -- and they talked about implementing AI and automation. So again, they'll need partners like us to help them to create these AI solutions and the automation to achieve their goal of reducing expenses. And the other one is defense. And they talked about investing a lot on the defense side and on the digital and all the IT that needs to be supporting these defense initiatives. And again, that's a big portion of our business in other countries like in U.S., in Germany. We are a NATO partner for IT. So we see a lot of potential there and see how we can help them to bring what we have across the world and what we can bring to them. So it's very important. The fact also that they want to bring back some work in Canada. I think for a company like ours where we have a very good presence in Canada will be beneficial. And I think we can bring a lot of solutions to the federal government.

Your next question comes from Richard Tse with National Bank.

Francois, about a year ago, I think you talked about elevating CGI's brand. And my guess is it was sort of to help you grow the U.S. commercial footprint. Where are you in that? And what sort of metrics are you monitoring to assess whether those investments are working? François Boulanger: Thanks, Richard, for the question. Yes, it's still a focus of mine and the company. And one of the KPIs that we're following the most for that is new business. And this quarter, we had 45% of our booking that was new business, not necessarily new clients, but new business and a lot of them were new clients also. So that's how we are managing this. And also the alliances is helping us on that side and having -- working closer with them is bringing also new kind of business. You see also what we're doing with the industries, analysts like IDC that name us on the state and local for AI services. So that's the kind of work that we're doing with the marketing team, with the operations to be more visible with these analysts to be more visible with these partners. And again, the ultimate goal is to sign new deal with existing clients, but also more importantly, to bring new clients in -- and by the way, the pipeline is up by 30% for that -- for these new business, new clients.

Okay. My second question has to do with some of your prepared comments on the increased demand in your APAC delivery centers. How does offshore play in terms of the increasing shift to AI? Does it sort of increase or decrease in importance there? François Boulanger: I would think, yes, two things. First of all, we have the GCC thing, right? So as you know, a lot of companies are looking at opening their own GCC or captive in India. So that's demand. We see a lot of demand to help them to create that for them with a transfer optionality at the end of the contract. So that's still creating a lot of demand in this business. And so we see that continue in the future. As for AI, for sure, we balance the number of hiring in India because a lot of activities or some of the activities can be done now with AI. So for example, when we're doing our development of our IP, that's mostly all done in India, but with some of these tools, AI tools, it's helping us to do some automation on the coding side or the development of the code of these new IP. So that's helping to not having the same number of employees to do the work that it was done like 2 years or 3 years ago. And finally, in the managed services, they have the expertise to manage -- to do these managed services. So they have also the expertise of implementing these tools to help us. So like I was saying DigiOps, who's applying DigiOps, it's mostly our Indian colleagues who's doing it. We're doing it elsewhere, but a lot of it is also done in India. So I'm seeing still India as an important tool and way of generating revenue for the future.

[Operator Instructions] Your next question comes from Suthan Sukumar with Stifel.

For my first question, I wanted to touch on AI spending priorities here. What are you seeing with respect to how clients are thinking about their spending priorities when they start to realize some of the initial ROI from early AI projects. Just wondering, are you seeing savings being reinvested elsewhere with respect to other buckets of IT spend? Or are they doubling down on AI and more of the underlying modernization work needed? François Boulanger: I think it's both. Right? Some of them are doing some investment in AI. And if they are seeing the ROI, for sure, they'll continue to invest on that side. But also, they had a backlog on the modernization side. For the last several years, they didn't do a lot of that modernization. So the fact that if they can find savings by the use of AI, at least that's what the clients are telling me when I'm meeting with these CEOs and also what the voice of our client is saying to us is that they need to find savings to tackle that backlog of transformation that they didn't do. So we are seeing that demand will continue on that side. The other thing also is on the data itself. it's nice to apply AI. It's nice to having your AI tool looking at your data, but still so much to do on the cleaning of that data and what's making sense, what's not making sense. So that -- and the security around the data, who can see what. And so again, a lot of work on that side that needs to be done. So again, I'm seeing data -- AI as a way of companies to resolve their backlog of transformation, and they'll need help. They'll need help from companies like ours. Same thing for business processes, same thing for security, cybersecurity with AI, naturally, it's bringing some risk on the cybersecurity. And again, they need people like us to help them to manage these risks.

Great. My second question, I just wanted to touch on recent M&A. Can you provide a brief update on sort of how integration is going and how that's tracking to your expectations? And with respect to potential synergies, what sort of early traction or potential are you seeing that might be better than what you expected initially with these acquisitions? François Boulanger: Yes. I can start on the, say, opportunity side with clients and perhaps, Steve, you can give some color on the synergy side. Again, like I was saying a bit with the ones that we did, example, on Daugherty in the U.S. in the St. Louis and Chicago area, again, a place where we were not that well implemented. We have a lot of new clients and new relationships that we created. And again, we are showing to them. Daugherty was a great SI&C company, but without any managed services offering. And we came in and present to these clients, hey, we still have the opportunity to work with Daugherty great team. But more and above that, you are able now to tap on the overall CGI on the managed services, for example, and any other capabilities that we have. And it's working. We have several clients where we were able to sign new deals. And so it brought not just the revenue from Daugherty, but when I'm saying sometimes 1 plus 1 equal 3, that's what's happening in some of these acquisitions. So it's going well on that side, on the revenue, on the top line, on the savings side.

The savings side, look, if you look at all the acquisitions we did, the ones that we did in the U.S. earlier in the year, obviously, that's now all integrated. BJSS and the German one also Novatec that we did in the spring time. It was more integrated during the summer. So now it's integrated. So obviously, the savings are coming a lot faster when we are using our system, when we are using our processes. And you can see the benefit of the synergies. Apside was done recently. So not yet all integrated into our processes and system. It's going to be done over the next couple of months. And with that, obviously, margin will improve. It's part of the plan. And -- but still, we are quite proud with the situation that we had in Q4 with the margin of 16.6% that we were capable of delivering even during this integration period for a couple of acquisitions.

There are no further questions at this time. I will now turn the call over to management for closing remarks.

Thanks, Joelle, and thanks, everyone, for participating. As a reminder, a replay of the call will be available either via our website or by dialing 1 (888) 660-6264 and using the passcode 14123. As well, a podcast of this call will be available for download within a few hours. Follow-up questions can be directed to me at 1 (905) 973-8363. Thanks again, everyone, and look forward to speaking soon. François Boulanger: Thank you.

Ladies and gentlemen, this concludes the conference call for today. We thank you for participating and ask that you please disconnect your lines.