(Montreal) Thanks to artificial intelligence, the specialist in CGI IT advisor should generate more income per employee, but his boss has avoided saying explicitly if these productivity gains will lead to a reduction in the number of employees.
Many CEOs no longer put white gloves to say that they will need fewer employees thanks to artificial intelligence in their recent public statements.
Questioned on the subject by a financial analyst, the president and chief executive officer of CGI, François Boulanger, was more prudent, during a conference call on Wednesday to discuss his most recent quarterly results.
“You can expect to see the revenue by employee increasing,” he replied. It will increase in the future. This is normal since people will become more productive, using these tools more and more. »»
Without revealing his intentions on the size of his workforce, Mr. Boulanger stressed that professionals were needed to use these new technological tools. “In the end, we and our customers will need experts to set up these skills. »»
CGI did not provide more details after the conference. The company referred to Mr. Boulanger’s comments on the commercial potential of artificial intelligence.
For the past year, CGI has dismissed 155 employees in Quebec, according to the advice sent to the Ministry of Employment and Social Solidarity. Job losses took place in its offices in Montreal, Quebec and Sherbrooke.
Artificial intelligence allows CGI customers to reduce their costs, underlined Mr. Boulanger. He also indicated that around 40 % of his intellectual property had an integrated artificial intelligence component.
Many acquisition targets
The management of CGI continues to feel the ground to make new acquisitions, confirmed Mr. Boulanger. “The pipeline is still active. We have good discussions. »»
Recently, the American competitor Accenture prioritized share buybacks rather than acquisitions, underlined an analyst who wondered if the occasions were less numerous.
For his part, Mr. Boulanger said he was “optimistic” on the opportunities for acquisitions. “This is still something that we look at very closely. I would say that the evaluations are lower than before. We have several targets which are at a point where they must make a decision as to their future. »»
Doge changes priority
The attempted compression of the Department of Government Effectiveness (DOGE) of the Trump administration also seem to have dissipated. “We are no longer asked questions [pour justifier nos contrats] “Said Mr. Boulanger.
The CGI Federal subsidiary was in the list of the ten largest providers of consultation services for the US government, according to a service note sent to federal officials in February.
CGI had been relatively spared, according to a review of public data from the DOGE compiled by the Canadian press. At the beginning of April, six contracts were canceled, for reported savings of US $ 465,000. Montreal society was better than some competitors who had lost millions of dollars in contracts.
Mr. Boulanger reiterated that government efficiency was compatible with CGI services. “To reduce costs, they need new systems. This is the kind of conversation we have with them. »»
Analyst Jérôme Dubreuil, from Desjardins Market de Capital, stresses that the management of IBM has made a similar observation. “” [Elle a dit] that the attention of the DOGE had moved from the cost reduction to modernization. »»
Results above expectations
CGI has unveiled a profit greater than the expectations in the third quarter, while its boss indicated that trade tensions slowed down companies less. “We are starting to see business agreements and it will give a little more certainties to certain customers. »»
The activity is slowing down in the manufacturing sector, but the manager said that technological investments in the banking sector were vigorous.
The company achieved a profit of 408.6 million during the closed quarter on June 30, down 7.2 % compared to 440.1 million at the same period last year. This represents a profit margin of 10 % compared to 12 % last year.
The adjusted profit diluted per share is $ 2.10. Income, for their part, increased by 11.4 %, to 4.09 billion. By excluding conversions from currencies, income would have increased by 7 %.
Before the publication of the results, analysts anticipated a profit per share of $ 2.08 and 4.02 billion income, according to the financial data firm Refinitiv.
The new contracts were quantified at 4.15 billion. Dated June 30, the CGI order book totaled 30.58 billion.
“CGI has unveiled better results that was feared, with bullish potential for income and profits,” said Suthan Sukumar analyst, from Stifel. It reflects a certain stability and a solid execution. »»
Upon closing, CGI’s action had lost $ 3.50, or 2.84 %, at $ 134.05 on the Toronto Stock Exchange.
