CGI Group GIB is benefiting from an expanding clientele. It recently won a new contract from the Virginia Department of Social Services to modernize the legacy system supporting its Division of Child Support Enforcement (DCSE).
CGI will use CGI Transcend for Child Support, its platform-based solution designed to meet the unique requirements of state human services agencies. For DCSE staff, the platform’s intuitive interface is easy to learn and incorporates built-in AI, machine learning and analytics. CGI Transcend’s low-code, no-code configuration is built on Salesforce and integrates industry-leading solutions such as Snowflake.
CGI is also expanding its international footprint. In partnership with Tribun Healthcare, it will now support Region Sjælland in Denmark for the implementation of digital pathology solutions, CaloPix.
CGI is partnering with NATS, the U.K.'s leading provider of air traffic control services, to transform and modernize the latter’s digital infrastructure and services. NATS offers air traffic services at 14 U.K. airports. Through its two air traffic control centers located at Swanwick in Hampshire and Prestwick in Ayrshire, it manages all of U.K. airspace.
Under the seven-year agreement, CGI will deliver data center and hosting services to further increase the resilience, flexibility and scalability of NATS' digital infrastructure. GIB will help NATS’ operations to transition to a hybrid cloud model using an agile delivery approach.
CGI will also provide NATS with consulting services, frameworks and practices for transforming and managing its complex IT portfolio.
CGI Group, Inc. Price and Consensus 
CGI Group, Inc. price-consensus-chart | CGI Group, Inc. Quote
CGI’s Growth Prospects Remain Bright
CGI Group’s shares have returned 23.3% in the past year compared with the Zacks Computer Services industry’s increase of 12.4%.
This Zacks Rank #3 (Hold) company’s growing customer base is expected to drive its top-line growth. It has been selected by the likes of the City of Dallas, U.S. Strategic Command, Scotiabank and Alimentation Couche-Tard in recent times. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
GIB’s strong partner base, which includes Amazon AMZN, Alphabet GOOGL and Microsoft MSFT, has been a key catalyst.
In collaboration with Alphabet’s Google Cloud, CGI is set to launch the UNIDO Sustainability Planet Platform.
CGI has been a member of the Microsoft Intelligent Security Association (MISA). This new partnership with MISA gives CGI access to Microsoft's security product line, allowing it to provide clients with higher value and comprehensive security.
Expanding portfolio has been a key growth driver. Aligning with this commitment to cloud technology, CGI launched a cloud-ready enterprise payments solution, CGI All Payments, on AWS Marketplace in November, streamlining payment procedures for banks and offering scalability, ISO 20022 standards compliance and cloud-based delivery.
Moreover, the acquisition of Momentum Consulting, a Miami-based IT and business consulting firm, expanded CGI’s footprint in the United States.
CGI’s Outlook Strong
CGI benefits from its proximity-based business model that combines its worldwide network of experts and capabilities with local accountability and end-to-end services for clients.
The Zacks Consensus Estimate for first-quarter fiscal 2024 revenues is pegged at $2.59 billion, indicating 2.07% year-over-year growth. The consensus estimate for first-quarter earnings is pegged at $1.31 per share, indicating 7.38% year-over-year growth.
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