Consolidated Financial Statements of

CGI INC.

For the years ended September 30, 2026 and 2025



Management’s and Auditor’s Reports
MANAGEMENT’S STATEMENT OF RESPONSIBILITY FOR FINANCIAL REPORTING
The management of CGI Inc. (the Company) is responsible for the preparation and integrity of the consolidated financial statements and the Management’s Discussion and Analysis (MD&A). The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board and necessarily include some amounts that are based on management’s best estimates and judgement. Financial and operating data elsewhere in the MD&A are consistent with that contained in the accompanying consolidated financial statements.
To fulfill its responsibility, management has developed, and continues to maintain, systems of internal controls reinforced by the Company’s standards of conduct and ethics, as set out in written policies to ensure the reliability of the financial information and to safeguard its assets. The Company's consolidated financial statements and the effectiveness of internal control over financial reporting are subject to audits by an Independent Registered Public Accounting Firm, PricewaterhouseCoopers LLP, whose report follows. PricewaterhouseCoopers LLP, Independent Registered Public Accounting Firm appointed by our shareholders upon the recommendation of the Audit and Risk Management Committee of the Board of Directors, has performed independent audits of the consolidated balance sheets as at September 30, 2026 and 2025 and the related consolidated statements of earnings, comprehensive income, changes in equity and cash flows for the years ended September 30, 2026 and 2025 and the effectiveness of our internal control over financial reporting as at September 30, 2026.
Members of the Audit and Risk Management Committee of the Board of Directors, all of whom are independent of the Company, meet regularly with PricewaterhouseCoopers LLP and with management to discuss internal controls in the financial reporting process, auditing matters and financial reporting issues and formulate the appropriate recommendations to the Board of Directors. PricewaterhouseCoopers LLP has full and unrestricted access to the Audit and Risk Management Committee. The consolidated financial statements and MD&A have been reviewed and approved by the Board of Directors.


/s/ Timothy J. Hurlebaus/s/ Steve Perron
Timothy J. Hurlebaus
President and Chief Executive Officer
Steve Perron
Executive Vice-President and Chief Financial Officer
November 10, 2026


CGI Inc. – Consolidated Financial Statements for the years ended September 30, 2026 and 2025    1

Management’s and Auditor’s Reports
MANAGEMENT'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
The management of the Company is responsible for establishing and maintaining adequate internal control over financial reporting. The Company’s internal control over financial reporting is a process designed, under the supervision of and with the participation of the President and Chief Executive Officer as well as the Executive Vice-President and Chief Financial Officer, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of the Company’s consolidated financial statements for external reporting purposes in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (IFRS Accounting Standards).
The Company’s internal control over financial reporting includes policies and procedures that:
        - Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect transactions and dispositions of the assets of the Company;
        - Provide reasonable assurance that transactions are recorded as necessary to permit preparation of consolidated financial statements in accordance with IFRS Accounting Standards, and that receipts and expenditures are being made only in accordance with authorizations of management and the directors of the Company; and,
        - Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company’s assets that could have a material effect on the Company’s consolidated financial statements.
All internal control systems have inherent limitations; therefore, even where internal control over financial reporting is determined to be effective, it can provide only reasonable assurance. Projections of any evaluation of effectiveness to future periods are subject to the risk that the controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
The Company’s assessment and conclusion on the effectiveness of internal controls over financial reporting exclude the controls, policies and procedures of Online Enterprises Inc., operating as Online Business Systems (OBS), which was acquired on December 2, 2025, Comarch Polska SA (Comarch Polska), which was acquired on December 22, 2025, Stratfield, LLC (Stratfield), which was acquired on April 2, 2026, certain operations acquired from Telia Finland Oyj and Telia Cygate Oy (Telia) on September 1, 2026, and Callibrity Solutions, LLC (Callibrity), which was acquired on September 8, 2026. The aggregated results of OBS, Comarch Polska, Stratfield, Telia and Callibrity since their acquisition dates represented 0.9% of the revenue for the year ended September 30, 2026, and constituted 1.5% of total assets as at September 30, 2026.
Management, under the supervision of and with the participation of the President and Chief Executive Officer as well as the Executive Vice-President and Chief Financial Officer, conducted an assessment of the effectiveness of the Company’s internal control over financial reporting based on the criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Based on this assessment, management has determined the Company’s internal control over financial reporting as at September 30, 2026 was effective.
The effectiveness of the Company’s internal control over financial reporting as of September 30, 2026 has been audited by PricewaterhouseCoopers LLP, an Independent Registered Public Accounting Firm, as stated in their report which appears herein.
        

    
/s/ Timothy J. Hurlebaus/s/ Steve Perron
Timothy J. Hurlebaus
President and Chief Executive Officer
Steve Perron
Executive Vice-President and Chief Financial Officer
November 10, 2026


CGI Inc. – Consolidated Financial Statements for the years ended September 30, 2026 and 2025    2

Management’s and Auditor’s Reports
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Directors and Shareholders of CGI Inc.
Opinions on the Financial Statements and Internal Control over Financial Reporting
We have audited the accompanying consolidated balance sheets of CGI Inc. and its subsidiaries (the Company) as of September 30, 2026 and 2025, and the related consolidated statements of earnings, of comprehensive income, of changes in equity and of cash flows for the years then ended, including the related notes (collectively referred to as the consolidated financial statements). We also have audited the Company’s internal control over financial reporting as of September 30, 2026, based on criteria established in Internal Control ‒ Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of September 30, 2026 and 2025, and its financial performance and its cash flows for the years then ended in conformity with International Financial Reporting Standards as issued by the International Accounting Standards Board. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of September 30, 2026, based on criteria established in Internal Control ‒ Integrated Framework (2013) issued by the COSO.
Basis for Opinions
The Company’s management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Report on Internal Control over Financial Reporting. Our responsibility is to express opinions on the Company’s consolidated financial statements and on the Company’s internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects.
Our audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.

CGI Inc. – Consolidated Financial Statements for the years ended September 30, 2026 and 2025    3

Management’s and Auditor’s Reports
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM (continued)
Basis for Opinions (continued)
As described in the Management’s Report on Internal Control over Financial Reporting, management has excluded Online Enterprises Inc., operating as Online Business Systems (OBS), Comarch Polska SA (Comarch Polska), Stratfield, LLC (Stratfield), certain operations from Telia Finland Oyj and Telia Cygate Oy (Telia), and Callibrity Solutions, LLC (Callibrity), from its assessment of internal control over financial reporting as of September 30, 2026 because they were acquired by the Company in purchase business combinations during the year ended September 30, 2026. We have also excluded OBS, Comarch Polska, Stratfield, Telia and Callibrity from our audit of internal control over financial reporting. OBS, Comarch Polska, Stratfield, Telia and Callibrity whose total assets and total revenues excluded from management’s assessment and our audit of internal control over financial reporting represent 1.5% and 0.9%, respectively, of the related consolidated financial statement amounts as of and for the year ended September 30, 2026.
Definition and Limitations of Internal Control over Financial Reporting
A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Critical Audit Matters
The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the Audit and Risk Management Committee and that (i) relates to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgements. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

CGI Inc. – Consolidated Financial Statements for the years ended September 30, 2026 and 2025    4

Management’s and Auditor’s Reports
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM (continued)
Critical Audit Matters (continued)
Revenue Recognition ‒ Estimates of total expected labour costs for business and strategic information technology (IT) consulting and systems integration services under fixed-fee arrangements
As described in notes 3 and 29 to the consolidated financial statements, the Company recognizes revenue for business and strategic IT consulting and systems integration services under fixed-fee arrangements using the percentage-of-completion method over time. For the year ended September 30, 2026, revenue under fixed-fee arrangements makes up a portion of the Company’s business and strategic IT consulting and systems integration services revenues of $7,490,278,000. The selection of the measure of progress towards completion requires management’s judgement and is based on the nature of the services to be provided. As disclosed by management, the Company relies on estimates of total expected labour costs, which are compared to labour costs incurred to date, to arrive at an estimate of the progress to completion which determines the percentage of revenue earned to date. Management regularly reviews underlying estimates of total expected labour costs. Management has disclosed that there are many factors that can affect the estimates of total expected labour costs, including, but not limited to, changes in scope of the contracts, delays in reaching milestones, and complexities in project delivery.
The principal considerations for our determination that performing procedures relating to Revenue Recognition – Estimates of total expected labour costs for business and strategic IT consulting and systems integration services under fixed-fee arrangements is a critical audit matter are (i) there was significant judgement by management when developing the estimates of total expected labour costs; and (ii) there was auditor judgement and effort in performing procedures to evaluate the estimates of total expected labour costs, including the assessment of management’s judgement about the Company’s ability to properly assess the factors that can affect the estimates of total expected labour costs.
Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to the revenue recognition process, including controls over the determination of estimates of total expected labour costs. These procedures also included, among others, evaluating and testing management’s process, on a sample basis, for determining the estimates of total expected labour costs determined by management by (i) testing total labour costs incurred to supporting evidence; (ii) performing a comparison of the sum of total labour costs incurred and the total expected labour costs to complete to the originally estimated costs; and (iii) evaluating the process of the timely identification of factors that can affect the total expected labour costs including, but not limited to, changes to the scope of the contracts, delays in reaching milestones, and complexities in project delivery.



/s/PricewaterhouseCoopers LLP
Montréal, Canada
November 10, 2026

We have served as the Company’s auditor since 2019.
CGI Inc. – Consolidated Financial Statements for the years ended September 30, 2026 and 2025    5

Consolidated Statements of Earnings
For the years ended September 30
(in thousands of Canadian dollars, except per share data)
Notes20262025
$$
Revenue2916,573,609 15,912,673 
Operating expenses
Costs of services, selling and administrative 2313,866,916 13,301,045 
Restructuring, acquisition and related integration costs 25104,028 285,031 
Net finance costs 26122,702 83,692 
Net foreign exchange loss258 715 
14,093,904 13,670,483 
Earnings before income taxes 2,479,705 2,242,190 
Income tax expense16667,057 583,905 
Net earnings1,812,648 1,658,285 
Earnings per share
Basic earnings per share218.63 7.45 
Diluted earnings per share218.58 7.35 
See Notes to the Consolidated Financial Statements.

CGI Inc. – Consolidated Financial Statements for the years ended September 30, 2026 and 2025    6

Consolidated Statements of Comprehensive Income
For the years ended September 30
(in thousands of Canadian dollars)
20262025
$$
Net earnings1,812,648 1,658,285 
Items that will be reclassified subsequently to net earnings (net of income tax):
Net unrealized gains on translating financial statements of foreign operations38,342 692,721 
Net gains (losses) on cross-currency swaps and on translating long-term debt designated as hedges
of net investments in foreign operations
9,911 (153,352)
Net unrealized losses on cash flow hedges
(23,508)(27,429)
Deferred costs of hedging on derivatives
(12,884)(1,901)
Net unrealized (losses) gains on financial assets at fair value through other comprehensive income
(6,086)1,881 
Items that will not be reclassified subsequently to net earnings (net of income taxes):
Net remeasurement gains on defined benefit plans
30,899 39,171 
Other comprehensive income
36,674 551,091 
Comprehensive income1,849,322 2,209,376 
See Notes to the Consolidated Financial Statements.
CGI Inc. – Consolidated Financial Statements for the years ended September 30, 2026 and 2025    7

Consolidated Balance Sheets
For the years ended September 30
(in thousands of Canadian dollars)
Notes20262025
$$
 Assets
 Current assets
Cash and cash equivalents28e and 32493,857 864,209 
Accounts receivable 4 and 321,591,244 1,613,777 
Work in progress1,464,598 1,367,989 
Current financial assets328,529 6,167 
Prepaid expenses and other current assets211,416 193,896 
Income taxes30,459 28,705 
 Total current assets before funds held for clients3,800,103 4,074,743 
Funds held for clients 51,045,318 978,436 
 Total current assets4,845,421 5,053,179 
 Property, plant and equipment 6369,657 377,900 
 Right-of-use assets7492,395 541,987 
 Contract costs 8410,996 370,932 
 Intangible assets 9806,381 888,006 
 Other long-term assets10166,112 143,320 
 Long-term financial assets11167,827 162,438 
 Deferred tax assets 16153,108 239,284 
 Goodwill 1211,931,826 11,744,782 
19,343,723 19,521,828 
 Liabilities
 Current liabilities
Accounts payable and accrued liabilities1,085,461 1,014,834 
Accrued compensation and employee-related liabilities1,220,513 1,269,767 
Deferred revenue628,043 577,286 
Income taxes73,574 79,333 
Current portion of long-term debt13299,826 845,253 
Current portion of lease liabilities169,535 173,071 
Provisions1492,520 144,331 
Current derivative financial instruments3259,944 24,622 
 Total current liabilities before clients’ funds obligations3,629,416 4,128,497 
Clients’ funds obligations1,047,639 973,673 
 Total current liabilities4,677,055 5,102,170 
 Long-term debt133,024,532 2,792,582 
 Long-term lease liabilities461,954 520,413 
 Long-term provisions1424,487 39,665 
 Other long-term liabilities 15314,269 341,173 
 Long-term derivative financial instruments 32147,570 173,105 
 Deferred tax liabilities 1660,964 71,673 
 Retirement benefits obligations 17188,027 198,715 
8,898,858 9,239,496 
 Equity
 Retained earnings7,666,149 7,428,172 
 Accumulated other comprehensive income181,039,018 1,002,344 
 Capital stock 191,407,874 1,499,917 
 Contributed surplus331,824 351,899 
10,444,865 10,282,332 
19,343,723 19,521,828 
See Notes to the Consolidated Financial Statements.



                                                                             
/s/ Timothy J. Hurlebaus/s/ Julie Godin
Approved by the Board of DirectorsTimothy J. HurlebausJulie Godin
DirectorDirector
CGI Inc. – Consolidated Financial Statements for the years ended September 30, 2026 and 2025    8

Consolidated Statements of Changes in Equity
For the years ended September 30
(in thousands of Canadian dollars)
NotesRetained earningsAccumulated other comprehensive
income 		Capital
stock 		Contributed surplusTotal
equity
$$$$$
Balance as at September 30, 20257,428,172 1,002,344 1,499,917 351,899 10,282,332 
Net earnings1,812,648 — — — 1,812,648 
Other comprehensive income
— 36,674 — — 36,674 
Comprehensive income
1,812,648 36,674 — — 1,849,322 
Share-based payment costs
— — — 63,447 63,447 
Income tax impact associated with share-based payments— — — (1,743)(1,743)
Exercise of stock options
19— — 68,392 (11,590)56,802 
Settlement of performance share units
195,149 — 41,323 (70,189)(23,717)
Purchase for cancellation of Class A subordinate voting shares
and related tax
19(1,435,755)— (126,728)— (1,562,483)
Purchase of Class A subordinate voting shares held in trusts
19— — (75,030)— (75,030)
Cash dividends declared19(144,065)— — — (144,065)
Balance as at September 30, 20267,666,149 1,039,018 1,407,874 331,824 10,444,865 
NotesRetained earningsAccumulated other comprehensive
 income		Capital
stock 		Contributed surplusTotal
equity
$$$$$
Balance as at September 30, 20247,129,370 451,253 1,470,333 377,034 9,427,990 
Net earnings1,658,285 — — — 1,658,285 
Other comprehensive income— 551,091 — — 551,091 
Comprehensive income1,658,285 551,091 — — 2,209,376 
Share-based payment costs — — — 68,636 68,636 
Income tax impact associated with share-based payments— — — (3,712)(3,712)
Exercise of stock options19— — 74,319 (12,330)61,989 
Settlement of performance share units19(21,209)— 46,050 (77,729)(52,888)
Purchase for cancellation of Class A subordinate voting shares and related tax
19(1,203,222)— (77,462)— (1,280,684)
Purchase of Class A subordinate voting shares held in trusts19— — (13,323)— (13,323)
Cash dividends declared19(135,052)— — — (135,052)
Balance as at September 30, 20257,428,172 1,002,344 1,499,917 351,899 10,282,332 
See Notes to the Consolidated Financial Statements.

CGI Inc. – Consolidated Financial Statements for the years ended September 30, 2026 and 2025    9

Consolidated Statements of Cash Flows
For the years ended September 30
(in thousands of Canadian dollars)
Notes20262025
                        $ $
 Operating activities
 Net earnings1,812,648 1,658,285 
 Adjustments for:
Amortization, depreciation and impairment24622,973 614,266 
Deferred income tax expense1684,516 626 
Net foreign exchange loss11,330 12,139 
Share-based payment costs63,447 68,636 
Gain on sale of property, plant and equipment and on lease terminations(1,925)(712)
 Net change in non-cash working capital items and others
28a
(113,583)(119,043)
 Cash provided by operating activities2,479,406 2,234,197 
 Investing activities
 Net change in short-term investments20,806 24,807 
 Business acquisitions (net of cash acquired)
27(198,197)(1,829,965)
 Settlement of acquisition-related liabilities— (12,139)
 Loan receivable
— 9,915 
 Purchase of property, plant and equipment(118,549)(116,611)
 Proceeds from sale of property, plant and equipment— 1,295 
 Additions to contract costs(117,931)(98,545)
 Additions to intangible assets(148,963)(153,285)
 Purchase of long-term investments(84,001)(119,010)
 Proceeds from sale of long-term investments49,170 92,956 
 Cash used in investing activities(597,665)(2,200,582)
 Financing activities
 Increase of long-term debt13 and 28c498,553 923,922 
 Repayment of long-term debt13 and 28c(834,913)— 
 Settlement of derivative financial instruments28c and 3278 — 
 Repayment of debt assumed from business acquisitions28c(13,899)(47,953)
 Payment of lease liabilities
28c
(179,878)(177,465)
 Purchase for cancellation of Class A subordinate voting shares and related tax19(1,553,136)(1,274,530)
 Issuance of Class A subordinate voting shares56,802 62,001 
 Purchase of Class A subordinate voting shares held in trusts19(75,030)(13,323)
 Withholding taxes remitted on the net settlement of performance share units19(23,717)(52,888)
 Cash dividends paid19(144,065)(135,052)
 Net change in clients' funds obligations
74,059 468,623 
 Cash used in financing activities(2,195,146)(246,665)
 Effect of foreign exchange rate changes on cash, cash equivalents and cash included in
funds held for clients
7,407 87,033 
 Net decrease in cash, cash equivalents and cash included in funds held for clients
(305,998)(126,017)
 Cash, cash equivalents and cash included in funds held for clients, beginning of year1,568,712 1,694,729 
 Cash, cash equivalents and cash included in funds held for clients, end of year1,262,714 1,568,712 
 Cash composition:
 Cash and cash equivalents493,857 864,209 
 Cash included in funds held for clients5768,857 704,503 
Supplementary cash flow information (Note 28).

See Notes to the Consolidated Financial Statements.


CGI Inc. – Consolidated Financial Statements for the years ended September 30, 2026 and 2025    10

Notes to the Consolidated Financial Statements
For the years ended September 30, 2026 and 2025
(tabular amounts only are in thousands of Canadian dollars, except per share data)
1.Description of business
CGI Inc. (the Company), directly or through its subsidiaries, provides managed information technology (IT) and business process services, business and strategic IT consulting and systems integration services, and intellectual property (IP) business solutions to help clients effectively realize their strategies and create added value. The Company was incorporated under Part IA of the Companies Act (Québec), predecessor to the Business Corporations Act (Québec) which came into force on February 14, 2011 and its Class A subordinate voting shares are publicly traded. The executive and registered office of the Company is situated at 1350 René-Lévesque Blvd. West, Montréal, Québec, Canada, H3G 1T4.
2.Basis of preparation
These consolidated financial statements have been prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (IFRS Accounting Standards).
The Company’s consolidated financial statements for the years ended September 30, 2026 and 2025 were authorized for issue by the Board of Directors on November 10, 2026.
3.Summary of material accounting policies
BASIS OF CONSOLIDATION
The consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany transactions and balances have been eliminated on consolidation.
Subsidiaries are entities controlled by the Company. The Company controls an entity when it is exposed or has right to variable returns from its involvement with the entity and has the ability to affect those returns through its power over the relevant activities of the entity. Subsidiaries are fully consolidated from the date of acquisition and continue to be consolidated until the date control over the subsidiaries ceases.
BASIS OF MEASUREMENT
The consolidated financial statements have been prepared on a historical cost basis, except for certain financial assets and liabilities, which have been measured at fair value as described below.
USE OF JUDGEMENTS AND ESTIMATES
The preparation of the consolidated financial statements requires management to make judgements and estimates that affect the reported amounts of assets, liabilities, equity and the accompanying disclosures at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Because the use of judgements and estimates is inherent in the financial reporting process, actual results could differ.
Significant judgements and estimates about the future and other major sources of estimation uncertainty at the end of the reporting period could have a significant risk of causing a material adjustment to the carrying amounts of the following within the next financial years: revenue recognition, deferred tax assets, estimated losses on revenue-generating contracts, goodwill impairment, right-of-use assets, business combinations, provisions for uncertain tax treatments and litigation and claims.
The judgements, apart from those involving estimations, that have the most significant effect on the amounts recognized in the consolidated financial statements are:
Revenue recognition of multiple deliverable arrangements
Assessing whether the deliverables within an arrangement are separate performance obligations requires judgement by management. A deliverable is identified as a separate performance obligation if the customer benefits from it on its own or together with resources that are readily available to the customer and if it is separately identifiable from the other deliverables in the contract. The Company assesses if the deliverables are separately identifiable in the context of the contract by determining if the deliverables are integrated into a combined output, one or more deliverables significantly modify or customize others, or if the deliverables are highly interdependent or interrelated. If any of these factors are met, the deliverables are treated as a combined performance obligation.

CGI Inc. – Consolidated Financial Statements for the years ended September 30, 2026 and 2025    11

Notes to the Consolidated Financial Statements
For the years ended September 30, 2026 and 2025
(tabular amounts only are in thousands of Canadian dollars, except per share data)
3.Summary of material accounting policies (continued)
USE OF JUDGEMENTS AND ESTIMATES (CONTINUED)
Deferred tax assets
Deferred tax assets are recognized for unused tax losses to the extent that it is probable that taxable income will be available against which the losses can be utilized. Management judgement is required concerning uncertainties that exist with respect to the timing of future taxable income required to recognize a deferred tax asset. The Company recognizes an income tax benefit only when it is probable that the tax benefit will be realized in the future. In making this judgement, the Company relies on forecasts and the availability of future tax planning strategies.
A description of estimates is included in the respective sections within the Notes to the Consolidated Financial Statements.
REVENUE RECOGNITION, WORK IN PROGRESS AND DEFERRED REVENUE
The Company generates revenue through the provision of managed IT and business process services, business and strategic IT consulting and systems integration services, and intellectual property (IP) business solutions as described in Note 1, Description of business.
The Company provides services and products under arrangements that contain various pricing mechanisms. The Company accounts for a contract or a group of contracts when the following criteria are met: the parties to the contract have approved the contract in which their rights, their obligations and the payment terms have been identified, the contract has commercial substance, and the collectability of the consideration is probable.
A contract modification is a change in the scope or price of an existing revenue-generating customer contract. The Company accounts for a contract modification as a separate contract when the scope of the contract increases because of the addition of promised performance obligations and the price of the contract increases by an amount of consideration that reflects its stand-alone selling prices. When the contract is not accounted for as a separate contract, the Company recognizes an retrospective adjustment to revenue on the existing contract as at the date of the contract modification or, if the remaining products and services are distinct performance obligations, the Company recognizes the remaining consideration prospectively.
Revenue is recognized when or as the Company satisfies a performance obligation by transferring a promise of good or service to the customer and is measured at the amount of consideration the Company expects to be entitled to receive, including variable consideration, such as, performance-based consideration, discounts, volume rebates and service-level penalties. Variable consideration is estimated and is included only to the extent it is highly probable that a significant adjustment to revenue recognized will not occur. In making this judgement, management will consider all information available at the time (historical, current and forecasted), the Company’s knowledge of the client or the industry, the type of services to be delivered and the specific contractual terms of each arrangement.
Revenue from sales of third party vendor's products, such as software licenses, hardware or services is recorded on a gross basis when the Company is a principal to the transaction and is recorded net of costs when the Company is acting as an agent between the client and vendor. To determine whether the Company is a principal or an agent, it evaluates whether control is obtained of the products or services before they are transferred to the client. This is often demonstrated when the Company provides significant integration of the products and services from a third party vendor into the Company's products and services delivered to the client. Other factors considered include whether the Company has the primary responsibility for providing the products or services, has inventory risk before the specified products or services have been transferred to a client, or after transfer of control to a client, and has discretion establishing the selling price.
Relative stand-alone selling price
The Company’s arrangements often include a mix of the services and products as described below. If an arrangement involves the provision of multiple performance obligations, the total arrangement value is allocated to each performance obligations based on its relative stand-alone selling price. When estimating the stand-alone selling price of each performance obligations, the Company maximizes the use of observable prices which are established using the Company’s prices for same or similar deliverables. When observable prices are not available, the Company estimates stand-alone selling prices based on its best estimate.

CGI Inc. – Consolidated Financial Statements for the years ended September 30, 2026 and 2025    12

Notes to the Consolidated Financial Statements
For the years ended September 30, 2026 and 2025
(tabular amounts only are in thousands of Canadian dollars, except per share data)
3.Summary of material accounting policies (continued)
REVENUE RECOGNITION, WORK IN PROGRESS AND DEFERRED REVENUE (CONTINUED)
Relative stand-alone selling price (continued)
The best estimate of the stand-alone selling price is the price at which the Company would normally expect to offer the services or products and is established by considering a number of internal and external factors including, but not limited to, geographies, the Company’s pricing policies, internal costs and margins. Additionally, in certain circumstances, the Company may apply the residual approach when estimating the stand-alone selling price of software license products, for which the Company has not yet established the price or has not previously sold on a stand-alone basis.
As an incentive, upon client contract signature, the Company may provide discounts. These incentives are considered in the allocation of the relative stand-alone selling price of the performance obligations.
The appropriate revenue recognition method is applied for each performance obligation as described below.
Managed IT and business process services
Revenue from managed IT and business process services arrangements is generally recognized over time as the services are provided at the contractual billings, which corresponds with the value provided to the client, unless there is a better measure of performance or delivery.
Business and strategic IT consulting and systems integration services
Revenue from business and strategic IT consulting and systems integration services under time and material arrangements is recognized over time as the services are rendered, and revenue under cost-based arrangements is recognized over time as reimbursable costs are incurred. Contractual billings of such arrangements correspond with the value provided to the client, and therefore revenues are generally recognized when amounts become billable.
Revenue from business and strategic IT consulting and systems integration services under fixed-fee arrangements is recognized using the percentage-of-completion method over time, as the Company has no alternative use for the asset created and has an enforceable right to payment for performance completed to date. The Company primarily uses labour costs to measure the progress towards completion. This method relies on estimates of total expected labour costs, which are compared to labour costs incurred to date, to arrive at an estimate of the progress to completion which determines the percentage of revenue earned to date. Factors considered in the estimates include: changes in scope of the contracts, delays in reaching milestones, complexities in project delivery, availability and retention of qualified IT professionals and/or the ability of the subcontractors to perform their obligation within agreed upon budget and timeframes. Management regularly reviews underlying estimates of total expected labour costs.
Software licenses and Software-as-a-Service (SaaS)
CGI offers its intellectual property (IP) solutions as well as third party solutions in the form of software license arrangements. Most of these arrangements include other services such as implementation, customization and maintenance. For these types of arrangements, revenue from a software license, when identified as a performance obligation, is recognized at a point in time upon delivery. Otherwise when the software is significantly customized, integrated or modified, it is combined with the implementation and customization services and is accounted for as described in the business and strategic IT consulting and systems integration services section above. Revenue from maintenance services for software licenses sold is recognized straight-line over the term of the maintenance period.
CGI also provides its IP solutions in the form of SaaS where the customer cannot terminate the hosting contract and take possession of the software without significant penalty. SaaS are part of the managed IT and business process services offering where revenue is generally recognized over time as the services are provided. Transition activities to bring clients to the SaaS platforms, including hosting set-up and customization, that are not considered distinct performance obligations are capitalized as transition costs and amortized over the service period.
Work in progress and deferred revenue
Amounts recognized as revenue in excess of billings are classified as work in progress. Amounts received in advance of the performance of services or delivery of products are classified as deferred revenue. Work in progress and deferred revenue are presented net on a contract by-contract basis. During the year ended September 30, 2026, the revenues recognized from the short-term deferred revenue was not significantly different than what was presented as at September 30, 2025.
CGI Inc. – Consolidated Financial Statements for the years ended September 30, 2026 and 2025    13

Notes to the Consolidated Financial Statements
For the years ended September 30, 2026 and 2025
(tabular amounts only are in thousands of Canadian dollars, except per share data)
3.Summary of material accounting policies (continued)
CASH AND CASH EQUIVALENTS
Cash and cash equivalents consist of unrestricted cash and short-term investments having a maturity of three months or less from the date of purchase.
SHORT-TERM INVESTMENTS
Short-term investments, comprise generally of term deposits, have remaining maturities over three months, but not more than one year, at the date of purchase.
FUNDS HELD FOR CLIENTS AND CLIENTS’ FUNDS OBLIGATIONS
In connection with the Company’s payroll, tax filing and claims services, the Company collects funds for payment of payroll, taxes and claims, temporarily holds such funds until payment is due, remits the funds to the clients’ employees, appropriate tax authorities or claims holders, files tax returns and handles related regulatory correspondence and amendments. The funds held for clients include cash, short-term investments, long-term investments and long-term bonds. The Company presents the funds held for clients and related obligations separately. Funds held for clients are classified as current assets since these funds are held solely for the purpose of satisfying the clients’ funds obligations, which will be repaid within one year of the consolidated balance sheet date. The market fluctuations affect the fair value of the long-term bonds. Due to those fluctuations, funds held for clients might not equal to the clients' funds obligations.
Interest income earned and realized gains and losses on the disposal of short-term investments, long-term investments and long-term bonds are recorded in revenue in the period that the income is earned, as the collecting, holding and remitting of these funds are critical components of providing these services.
PROPERTY, PLANT AND EQUIPMENT (PP&E)
PP&E are recorded at cost and are depreciated over their estimated useful lives using the straight-line method.
Buildings
10 to 40 years
Leasehold improvementsLesser of the useful life or lease term
Furniture, fixtures and equipment
3 to 10 years
Computer equipment
3 to 5 years
LEASES
When the Company enters into contractual agreements with suppliers, an assessment is performed to determine if the contract contains a lease. The Company identified lease agreements under the following categories: Properties, Motor vehicles and others, as well as Computer equipment.
The Company identifies a lease if it conveys the right to control the use of an identified asset for a specific period in exchange for a determined consideration. At inception, a right-of-use asset for the underlying asset and corresponding lease liability are presented in the consolidated balance sheet measured on a present value basis except for short-term leases (expected term of 12 months or less) and leases with low value underlying asset for which payments are recorded as an expense on a straight-line basis over the lease term.
The right-of-use assets are measured at initial lease liabilities adjusted by lease payments made before the commencement date, indirect costs and lease incentives received. The right-of-use assets are depreciated on a straight-line basis over the expected lease term of the underlying asset.
Lease liabilities are measured at present value of non-cancellable payments of the expected lease term, which are mostly made of fixed payments of rent; variable payments that are based on an index or a rate; amounts expected to be payable as residual value guarantees.
Non-lease components, mostly made of fixed maintenance fees and property tax are excluded from the lease liabilities. Payments are recorded as an expense over the lease term as part of property costs.


CGI Inc. – Consolidated Financial Statements for the years ended September 30, 2026 and 2025    14

Notes to the Consolidated Financial Statements
For the years ended September 30, 2026 and 2025
(tabular amounts only are in thousands of Canadian dollars, except per share data)
3.Summary of material accounting policies (continued)
LEASES (CONTINUED)
The Company estimates the lease term in order to calculate the value of the lease liability at the initial date of the lease. Management uses judgement to determine the appropriate lease term based on the conditions of each lease. Lease extension or termination options are only considered in the lease term if it is reasonably certain of being exercised. Factors evaluated include value of leasehold improvements required and any potential incentive to take the option.
Discount rate used in the present value calculation is the incremental borrowing rate unless the implicit interest rate in the lease can be readily determined. The Company estimates the incremental borrowing rate for each lease or portfolio of leased assets, as most of the implicit interest rates in the leases are not readily determinable. To calculate the incremental borrowing rate, the Company considers its creditworthiness, the term of the arrangement, any collateral received and the economic environment at the lease date.
The lease liabilities are subsequently adjusted by interest which is recorded as part of net finance costs as well as from lease payments made.
Furthermore, lease liabilities are remeasured (along with the corresponding adjustment to the right-of-use asset), whenever the following situations occur:
–a modification in the lease term or a change in the assessment of an option to extend, purchase or terminate the lease, for which the lease liability is remeasured by discounting the revised lease payments using a revised discount rate; and
–a modification in the residual guarantees or in future lease payments due to a change of an index or rate tied to the payments, for which the lease liability is remeasured by discounting the revised lease payments using the initial discount rate determined when setting up the liability.
In addition, upon partial or full termination of a lease, the difference between the carrying amounts of the lease liability and the right-of-use asset is recorded in the consolidated statements of earnings.
CONTRACT COSTS
Contract costs are comprised primarily of transition costs incurred to implement long-term managed IT and business process services contracts, including SaaS, as well as incentives.
Transition costs
Transition costs consist mostly of costs associated with the installation of systems and processes, conversion of the client’s applications to the Company’s platforms incurred after the award of managed IT and business process services contracts, including SaaS hosting set-up and customization. Transition costs are comprised essentially of labour costs consisting of employee compensation and related fringe benefits. Labour costs also include subcontractor costs.
Incentives
Occasionally, incentives are granted to clients upon the signing of managed IT and business process services contracts. These incentives are granted in the form of cash payments.
Amortization of contract costs
Contract costs are amortized using the straight-line method over the period services are provided. Amortization of transition costs is included in costs of services, selling and administrative and amortization of incentives is recorded as a reduction of revenue.
Impairment of contract costs
When a contract is not expected to be profitable, the estimated loss is first applied to impair the related capitalized contract costs. The excess of the expected loss over the capitalized contract costs is recorded as onerous revenue-generating contracts in provisions. If at a future date the contract returns to profitability, the estimated losses on revenue-generating contracts must be reversed first, and if there is still additional projected profitability then any capitalized contract costs that were impaired must be reversed. The reversal of the impairment loss is limited so that the carrying amount does not exceed its recoverable amount, nor exceed the carrying amount that would have been determined, net of amortization, had no impairment loss been recognized for the contract costs in prior years.
CGI Inc. – Consolidated Financial Statements for the years ended September 30, 2026 and 2025    15

Notes to the Consolidated Financial Statements
For the years ended September 30, 2026 and 2025
(tabular amounts only are in thousands of Canadian dollars, except per share data)
3.Summary of material accounting policies (continued)
INTANGIBLE ASSETS
Intangible assets consist of software, business solutions, client relationships and backlog. Software and business solutions are recorded at cost. Software internally developed is capitalized when it meets specific capitalization criteria related to technical and financial feasibility and when the Company demonstrates its ability and intention to use it. Business solutions developed internally and marketed are capitalized when they meet specific capitalization criteria related to technical, market and financial feasibility. Software, business solutions, client relationships and backlog acquired through business combinations are initially recorded at their fair value based on the present value of expected future cash flows, which involves estimates, such as the forecasting of future cash flows and discount rates.
Amortization of intangible assets
The Company amortizes its intangible assets using the straight-line method over their estimated useful lives.
Software
1 to 8 years
Business solutions
3 to 10 years
Client relationships and backlog
5 to 10 years
IMPAIRMENT OF PP&E, RIGHT-OF-USE ASSETS, INTANGIBLE ASSETS AND GOODWILL
Timing of impairment testing
The carrying values of PP&E, right-of-use assets, intangible assets and goodwill are reviewed for impairment when events or changes in circumstances indicate that the carrying value may be impaired. The Company assesses at each reporting date whether any such events or changes in circumstances exist. The carrying values of intangible assets not yet available for use are tested for impairment annually as at September 30. Goodwill is also tested for impairment annually during the fourth quarter of each fiscal year.
Impairment testing
If any indication of impairment exists or when annual impairment testing for an asset is required, the Company estimates the recoverable amount of the asset or cash-generating unit (CGU) to which the asset relates to determine the extent of any impairment loss. The recoverable amount is the higher of an asset’s or CGU’s fair value less costs of disposal and its value in use (VIU) to the Company. The Company mainly uses the VIU. In assessing the VIU, estimated future cash flows are discounted to their present value using a discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or CGU. In determining fair value less costs of disposal, recent market transactions are taken into account, if available. If the recoverable amount of an asset or a CGU is estimated to be less than its carrying amount, the carrying amount is reduced to its recoverable amount. An impairment loss is recognized immediately in the consolidated statements of earnings.
Goodwill acquired through business combinations is allocated to the CGU or group of CGUs that are expected to benefit from acquired work force and synergies of the related business combination. The group of CGUs that benefit from the acquired work force and synergies correspond to the Company’s operating segments. For goodwill impairment testing purposes, the group of CGUs that represents the lowest level within the Company at which management monitors goodwill is the operating segment level.
The recoverable amount of each operating segment has been determined based on the VIU calculation which includes estimates about their future financial performance based on cash flows approved by management covering a period of five years. Key assumptions used in the VIU calculations are the pre-tax discount rate applied and the long-term growth rate of net operating cash flows. In determining these assumptions, management has taken into consideration the current economic environment and its resulting impact on expected growth and discount rates. The cash flow projections reflect management’s expectations of the segment's operating performance and growth prospects in the operating segment’s market. The pre-tax discount rate applied to an operating segment is derived from the weighted average cost of capital (WACC). Management considers factors such as country risk premium, risk-free rate, size premium and cost of debt to derive the WACC. Impairment losses relating to goodwill cannot be reversed in future periods.


CGI Inc. – Consolidated Financial Statements for the years ended September 30, 2026 and 2025    16

Notes to the Consolidated Financial Statements
For the years ended September 30, 2026 and 2025
(tabular amounts only are in thousands of Canadian dollars, except per share data)
3.Summary of material accounting policies (continued)
IMPAIRMENT OF PP&E, RIGHT-OF-USE ASSETS, INTANGIBLE ASSETS AND GOODWILL (CONTINUED)
Impairment testing (continued)
For impaired assets, other than goodwill, an assessment is made at each reporting date as to whether there is any indication that previously recognized impairment losses may no longer exist or may have decreased. If such indication exists, the Company estimates the recoverable amount of the asset. A previously recognized impairment loss is reversed only if there has been a change in the assumptions used to determine the recoverable amount of the asset since the last impairment loss was recognized. The reversal is limited so that the carrying amount of the asset does not exceed its recoverable amount, nor exceed the carrying amount that would have been determined, net of amortization, had no impairment loss been recognized for the asset in prior years. Such reversal is recognized in the consolidated statements of earnings.
LONG-TERM FINANCIAL ASSETS
Long-term financial assets are comprised mainly of deferred compensation plan assets and long-term investments bonds which are presented as long-term based on their maturity date.
BUSINESS COMBINATIONS
The Company accounts for its business combinations using the acquisition method. Under this method, the consideration transferred is measured at fair value. Acquisition and related integration costs associated with the business combination are expensed as incurred or when a present legal or constructive obligation exists. The Company recognizes goodwill as the excess of the cost of the acquisition over the net identifiable tangible and intangible assets acquired and liabilities assumed at their acquisition-date fair values. The goodwill recognized is composed of the future economic value associated to acquired work force and synergies with the Company’s operations which are primarily due to reduction of costs and new business opportunities. Management makes assumptions when determining the acquisition-date fair values of the identifiable tangible and intangible assets acquired and liabilities assumed which involve estimates, such as the forecasting of future cash flows, discount rates and the useful lives of the assets acquired. Subsequent changes in fair values are recorded as part of the purchase price allocation and therefore result in corresponding goodwill adjustments if they qualify as measurement period adjustments. The measurement period is the period between the date of acquisition and the date where all significant information necessary to determine the fair values is available, not to exceed 12 months. All other subsequent changes in judgements and estimates are recognized in the consolidated statements of earnings.
EARNINGS PER SHARE
Basic earnings per share is based on the weighted average number of shares outstanding during the period. Diluted earnings per share is determined using the treasury stock method to evaluate the dilutive effect of performance share units (PSUs), stock options and restricted share units (RSUs).
RESEARCH AND SOFTWARE DEVELOPMENT COSTS
Research costs are charged to earnings in the period in which they are incurred, net of related tax credits. Development costs related to software and business solutions are charged to earnings in the period they are incurred, net of related tax credits, unless they meet specific capitalization criteria related to technical, market and financial feasibility as described in the Intangible assets section above.
TAX CREDITS
The Company follows the income approach to account for research and development (R&D) and other tax credits, whereby tax credits are recorded when there is a reasonable assurance that the assistance will be received and that the Company will comply with all relevant conditions. Under this method, tax credits related to operating expenditures are recorded as a reduction of the related expenses and recognized in the period in which the related expenditures are charged to earnings. Tax credits related to capital expenditures are recorded as a reduction of the cost of the related assets. The tax credits recorded are based on management's best estimates of amounts expected to be received and are subject to audit by the taxation authorities. These estimates are reviewed each reporting period and updated, based on new information available.

CGI Inc. – Consolidated Financial Statements for the years ended September 30, 2026 and 2025    17

Notes to the Consolidated Financial Statements
For the years ended September 30, 2026 and 2025
(tabular amounts only are in thousands of Canadian dollars, except per share data)
3.Summary of material accounting policies (continued)
INCOME TAXES
Income taxes are accounted for using the liability method of accounting. 
Current income taxes are recognized with respect to the amounts expected to be paid or recovered under the tax rates and laws that have been enacted or substantively enacted at the balance sheets date.
Deferred tax assets and liabilities are determined based on deductible or taxable temporary differences between the amounts reported for consolidated financial statement purposes and tax values of the assets and liabilities using enacted or substantively enacted tax rates that will be in effect for the year in which the differences are expected to be recovered or settled. Deferred tax assets and liabilities are recognized in earnings, in other comprehensive income or in equity based on the classification of the item to which they relate.
Deferred tax assets are recognized for unused tax losses and deductible temporary differences to the extent that it is probable that taxable profit will be available against which they can be utilized. Once this assessment is made, the Company considers the analysis of forecasts and future tax planning strategies. Estimates of taxable profit are made based on the forecast by jurisdiction on an undiscounted basis.
The Company is subject to income tax laws in numerous jurisdictions. Judgement is required in determining the worldwide provision for income taxes as the determination of tax liabilities and assets involves uncertainties in the interpretation of complex tax regulations and requires estimates and assumptions considering the existing facts and circumstances. The Company provides for potential tax liabilities based on the most likely amount of the possible outcomes. Estimates are reviewed each reporting period and updated, based on new information available, and could result in changes to the income tax liabilities and deferred tax liabilities in the period in which such determinations are made.
PROVISIONS
Provisions are recognized when the Company has a present legal or constructive obligation as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. The Company’s provisions consist of liabilities for litigation and claims provisions arising in the ordinary course of business, decommissioning liabilities for leases of office buildings, onerous revenue-generating contracts and onerous supplier contracts. The Company also records severance provisions related to specific initiatives such as restructuring and the integration of its business acquisitions.
The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. Provisions are discounted using a current pre-tax rate when the impact of the time value of money is material. The increase in the provisions due to the passage of time is recognized as finance costs.
Provisions for litigation, claims and interests are based on management’s estimates of amounts payable, taking into account applicable laws and regulations, the circumstances of each matter, historical experience, current trends, and the status of any related assessments or discussions with relevant authorities or other parties. Estimates also consider when the underlying cause of the matter occurred and the likelihood of an unfavourable outcome.
Decommissioning liabilities pertain to leases of buildings where certain arrangements require premises to be returned to their original state at the end of the lease term. The provision is determined using the present value of the estimated future cash outflows.
Provisions for onerous revenue-generating contracts are recorded when remaining unavoidable costs of fulfilling the contract exceed the remaining estimated revenue from the contract. Management regularly reviews arrangement profitability and the underlying estimates.
Provisions for onerous supplier contracts are recorded when the unavoidable net cash flows from honoring the contract are negative. The provision represents the lowest of the costs to fulfill the contract and the penalties to exit the contract. Those are generally related to non-lease components of vacated leased premises.
Severance provisions are recognized when a detailed formal plan identifies the business or part of the business concerned, the location and number of employees affected, a detailed estimate of the associated costs, appropriate timelines and has been communicated to those affected by it.
CGI Inc. – Consolidated Financial Statements for the years ended September 30, 2026 and 2025    18

Notes to the Consolidated Financial Statements
For the years ended September 30, 2026 and 2025
(tabular amounts only are in thousands of Canadian dollars, except per share data)
3.Summary of material accounting policies (continued)
TRANSLATION OF FOREIGN CURRENCIES
The Company’s consolidated financial statements are presented in Canadian dollars, which is also the parent company’s functional currency. Each entity in the Company determines its own functional currency and items included in the financial statements of each entity are measured using that functional currency. Functional currency is the currency of the primary economic environment in which the entity operates.
Foreign currency transactions and balances
Revenue, expenses and non-monetary assets and liabilities denominated in foreign currencies are recorded at the rate of exchange prevailing at the transaction date. Monetary assets and liabilities denominated in foreign currencies are translated at exchange rates prevailing at the balance sheets date. Unrealized and realized translation gains and losses are reflected in the consolidated statements of earnings.
Foreign operations
For foreign operations that have functional currencies different from the Company, assets and liabilities denominated in a foreign currency are translated at exchange rates in effect at the balance sheet date. Revenue and expenses are translated at average exchange rates prevailing during the period. Resulting unrealized gains or losses on translating financial statements of foreign operations are reported in other comprehensive income.
For foreign operations with the same functional currency as the Company, monetary assets and liabilities are translated at the exchange rates in effect at the balance sheets date and non-monetary assets and liabilities are translated at historical exchange rates. Revenue and expenses are translated at average exchange rates during the period. Translation exchange gains or losses of such operations are reflected in the consolidated statements of earnings.
SHARE-BASED PAYMENTS
Equity-settled plans
The Company operates a Share Unit Plan (Share Unit Plan) and an equity-settled stock option plans under which the Company receives services from employees, officers and directors as consideration for equity instruments. Both PSUs and RSUs can be issued under the Share Unit Plan (and are collectively referred to as “Share Units” under such Share Unit Plan).
The fair value of the PSUs and RSUs is established based on the closing price of Class A subordinate voting shares of the Company on the Toronto Stock Exchange (TSX) at the grant date. For the stock options, the fair value is established using the Black-Scholes option pricing model at the grant date. The number of PSUs, RSUs and stock options expected to vest are estimated on the grant date and subsequently revised on each reporting date. For stock options, the estimation of fair value requires making assumptions for the most appropriate inputs to the valuation model including the expected life of the option and expected stock price volatility. The fair value of share-based payments, adjusted for expectations related to performance conditions and forfeitures, are recognized as share-based payment costs over the vesting period in earnings with a corresponding credit to contributed surplus on a graded-vesting basis if they vest annually or on a straight-line basis if they vest at the end of the vesting period.
When PSUs or RSUs are exercised, the Company may settle employees’ withholding tax obligations directly with tax authorities in cash. The portion of the PSU or RSU expense previously recorded in contributed surplus is reclassified to capital stock at value of the shares released. Any resulting difference between the amount removed from contributed surplus, the amount credited to capital stock, and the cash paid for withholding taxes is recognized in retained earnings. When stock options are exercised, any consideration paid is credited to capital stock and the recorded fair value of the stock options is removed from contributed surplus and credited to capital stock.
Share purchase plan
The Company operates a share purchase plan for eligible employees. Under this plan, the Company matches the contributions made by employees up to a maximum percentage of the employee's salary or a fixed amount. The Company's contributions to the plan are recognized in salaries, other employee costs and contracted labour costs within costs of services, selling and administrative.


CGI Inc. – Consolidated Financial Statements for the years ended September 30, 2026 and 2025    19

Notes to the Consolidated Financial Statements
For the years ended September 30, 2026 and 2025
(tabular amounts only are in thousands of Canadian dollars, except per share data)
3.Summary of material accounting policies (continued)
SHARE-BASED PAYMENTS (CONTINUED)
Cash-settled deferred share units
The Company operates a deferred share unit (DSU) plan to compensate the external members of the Board of Directors. The expense is recognized within costs of services, selling and administrative for each DSU granted equal to the closing price of Class A subordinate voting shares of the Company on the TSX at the date on which DSUs are awarded and a corresponding liability is recorded in accrued compensation and employee-related liabilities. After the grant date, the DSU liability is remeasured for subsequent changes in the fair value of the Company's shares.
FINANCIAL INSTRUMENTS
All financial instruments are initially measured at their fair value and are subsequently classified either at amortized cost, at fair value through earnings (FVTE) or at fair value through other comprehensive income (FVOCI). Financial assets are classified based on the Company’s management model of such instruments and their contractual cash flows they generate. Financial liabilities are classified and measured at amortized cost, unless they are held for trading and classified as FVTE.
The Company has made the following classifications:
FVTE
Cash and cash equivalents, cash included in funds held for clients, derivative financial instruments and deferred compensation plan assets within long-term financial assets are measured at fair value at the end of each reporting period and the resulting gains or losses are recorded in the consolidated statements of earnings.
Amortized Cost
Trade accounts receivable, long-term receivables within long-term financial assets, short-term and long-term investments in funds held for clients, accounts payable and accrued liabilities, accrued compensation and employee-related liabilities, long-term debt and clients’ funds obligations are measured at amortized cost using the effective interest method. Financial assets classified at amortized cost are subject to impairment. For trade accounts receivable and work in progress, the Company applies the simplified approach to measure expected credit losses, which requires lifetime expected loss allowance to be recorded upon initial recognition of the financial assets.
FVOCI
Short-term investments included in current financial assets, long-term bonds included in funds held for clients and long-term investments within long-term financial assets are measured at fair value through other comprehensive income and are subject to impairment for which the Company uses the low credit risk exemption.
The unrealized gains and losses, net of applicable income taxes, are recorded in other comprehensive income. Interest income measured using the effective interest method and realized gains and losses on derecognition are recorded in the consolidated statements of earnings.
Transaction costs are comprised primarily of legal, accounting and other costs directly attributable to the acquisition or issuance of financial instruments. Transaction costs related to financial instruments other than FVTE are included in the initial recognition of the corresponding asset or liability and are amortized using effective interest method. Transaction costs related to the unsecured committed revolving credit facility are included in other long-term assets and are amortized using the straight-line method over the expected life of the underlying agreement.
Financial assets are derecognized if the contractual rights to the cash flows from the financial asset expire or the asset is transferred and the transfer qualifies for derecognition as substantially all the risks and rewards of ownership of the financial asset have been transferred.





CGI Inc. – Consolidated Financial Statements for the years ended September 30, 2026 and 2025    20

Notes to the Consolidated Financial Statements
For the years ended September 30, 2026 and 2025
(tabular amounts only are in thousands of Canadian dollars, except per share data)
3.Summary of material accounting policies (continued)
FINANCIAL INSTRUMENTS (CONTINUED)
Fair value hierarchy
Fair value measurements recognized on the balance sheets are classified in accordance with the following levels:
Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities;
Level 2: inputs other than quoted prices included in Level 1, but that are observable for the asset or liability, either directly or indirectly; and
Level 3: inputs for the asset or liability that are not based on observable market data.
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING TRANSACTIONS
The Company enters into a variety of derivative financial instruments to manage its exposure to interest rate and foreign currency exchange risks.
Derivative financial instruments are initially recognized at fair value at the date the derivative contracts are entered into and are subsequently remeasured to their fair value at the end of each reporting date. The resulting gain or loss is recognized in the consolidated statements of earnings, unless the derivative is designated and is effective as a hedging instrument, in which event the timing of the recognition in the consolidated statements of earnings depends on the nature of the hedge relationship. The cash flows of the hedging instruments are classified in the same manner as the cash flows of the item being hedged.
At the inception of a hedge relationship, the Company formally designates and documents the hedge relationship to which the Company wishes to apply hedge accounting and the risk management's objective and strategy for undertaking the hedge. The documentation includes the identification of the nature of the risk being hedged, the economic relationship between the hedged item and the hedging instruments which should not be dominated by credit risk, the hedge ratio consistent with the risk management strategy pursued and how the Company will assess the effectiveness of the hedging relationship on an ongoing basis.
Management evaluates hedge effectiveness at inception of the hedge instrument and quarterly thereafter generally based on a managed hedge ratio of 1 for 1. Hedge effectiveness is measured prospectively as the extent to which changes in the fair value or cash flows of the derivative offsets the changes in the fair value or cash flows of the underlying hedged instrument or risk when there is a significant mismatch between the terms of the hedging instrument and the hedged item. Any meaningful imbalance is considered ineffectiveness in the hedge and accounted for accordingly in the consolidated statements of earnings.
Hedges of net investments in foreign operations
The Company may use cross-currency swaps and foreign currency denominated long-term debt to hedge portions of the Company’s net investments in its U.S. and European operations. Foreign exchange translation gains or losses on the net investments and the effective portions of gains or losses on instruments hedging the net investments are recorded in other comprehensive income. Gains or losses relating to the ineffective portion are recognized in consolidated statements of earnings. When the hedged net investment is disposed of, the relevant amount in other comprehensive income is transferred to earnings as part of the gain or loss on disposal.
Cash flow hedges of future revenue and long-term debt
The majority of the Company’s revenue and costs are denominated in a currency other than the Canadian dollar. The risk of foreign exchange fluctuations impacting the results is substantially mitigated by matching the Company’s costs with revenue denominated in the same currency. In certain cases where there is a substantial imbalance for a specific currency, the Company enters into foreign currency forward contracts to hedge the variability in the foreign currency exchange rates.
The Company also uses interest rate and cross-currency swaps to hedge either the cash flow exposure or the foreign exchange exposure of the long-term debt.
The effective portion of the change in fair value of the derivative financial instruments is recognized in other comprehensive income and the ineffective portion, if any, in the consolidated statements of earnings. The effective portion of the change in fair value of the derivatives is reclassified out of other comprehensive income into the consolidated statements of earnings when the hedged item is recognized in the consolidated statements of earnings.
CGI Inc. – Consolidated Financial Statements for the years ended September 30, 2026 and 2025    21

Notes to the Consolidated Financial Statements
For the years ended September 30, 2026 and 2025
(tabular amounts only are in thousands of Canadian dollars, except per share data)
3.Summary of material accounting policies (continued)
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING TRANSACTIONS (CONTINUED)
Cost of hedging
The Company has elected to account for forward element and foreign currency basis spread of forward contracts and cross-currency swaps as costs of hedging. In such cases, the deferred costs (gains) of hedging, net of applicable income taxes, are recognized as a separate component of the accumulated other comprehensive income and reclassified in the consolidated statements of earnings when the hedged item is derecognized.
EMPLOYEE BENEFITS
The Company operates both defined benefit and defined contribution post-employment benefit plans.
The cost of defined contribution plans is charged to the consolidated statements of earnings on the basis of contributions payable by the Company during the year.
For defined benefit plans, the defined benefit obligations are calculated by independent actuaries using the projected unit credit method. The retirement benefits obligations in the consolidated balance sheets represent the present value of the defined benefit obligations as reduced by the fair value of plan assets on a plan by plan basis. The retirement benefits assets are recognized to the extent that the Company can benefit from refunds or a reduction in future contributions. Retirement benefits plans that are funded by the payment of insurance premiums are treated as defined contribution plans unless the Company has an obligation either to pay the benefits directly when they fall due or to pay further amounts if assets accumulated with the insurer do not cover all future employee benefits. In such circumstances, the plan is treated as a defined benefit plan.
Insurance policies are treated as plan assets of a defined benefit plan if the proceeds of the policy:
-     Can only be used to fund employee benefits;
-    Are not available to the Company’s creditors; and
-    Either cannot be paid to the Company unless the proceeds represent surplus assets not needed to meet all the benefit obligations or are a reimbursement for benefits already paid by the Company.
Insurance policies that do not meet the above criteria are treated as non-current investments and are held at fair value as long-term financial assets in the consolidated balance sheets.
The actuarial valuations used to determine the cost of defined benefit pension plans and their present value involve making assumptions such as discount rates, future salary and pension increases, inflation rates and mortality. Any changes in assumptions will impact the carrying amount of pension obligations. In determining the appropriate discount rate, management considers the interest rates of high quality corporate bonds that are denominated in the currency in which the benefits will be paid, and that have terms to maturity approximating the terms of the related pension liability.
The current service cost is recognized in the consolidated statements of earnings under costs of services, selling and administrative. The net interest cost calculated by applying the discount rate to the net defined benefit liabilities or assets is recognized as net finance cost or income. When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefits that relates to past services or the gains or losses on curtailment is recognized immediately in the consolidated statements of earnings. The gains or losses on the settlement of a defined benefit plan are recognized when the settlement occurs.
Remeasurements on defined benefit plans include actuarial gains and losses, changes in the effect of the asset ceiling and the return on plan assets, excluding the amount included in net interest on the net defined liabilities or assets. Remeasurements are charged or credited to other comprehensive income in the period in which they arise.



CGI Inc. – Consolidated Financial Statements for the years ended September 30, 2026 and 2025    22

Notes to the Consolidated Financial Statements
For the years ended September 30, 2026 and 2025
(tabular amounts only are in thousands of Canadian dollars, except per share data)
3.     Summary of material accounting policies (continued)
FUTURE ACCOUNTING STANDARD CHANGES
The following standard amendments are effective as of October 1, 2026:
Classification and measurement of Financial Instruments – Amendments to IFRS 9 and IFRS 7
In May 2024, the IASB issued Amendments to the Classification and Measurement of Financial Instruments, which amend IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosures. The amendments clarify the derecognition of financial liabilities settled through electronic payment systems and permit an entity to derecognize a qualifying liability before the settlement date when the payment instruction cannot be withdrawn or cancelled, the entity cannot access the designated cash, and settlement risk is insignificant. The Company assessed its electronic payment systems and elected to apply this exception to qualifying payments. Accordingly, qualifying liabilities are expected to continue to be derecognized when the payment instruction is initiated, with no transition impact.
For outstanding checks, the related financial liability should be derecognized when the checks are cleared by the bank. The amendments will result in a reclassification between cash and cash equivalents and accounts payable and accrued liabilities, as well as funds held for clients and client's funds obligations which will be applied as at October 1, 2026, without restating comparative figures. The impact of adopting the change on the consolidated balance sheets will be as follows:
September 30, 2026, as reportedAmendments to IFRS 9 and IFRS 7October 1, 2026, upon adoption of Amendments to IFRS 9 and IFRS 7
$$$
Assets
 Cash and cash equivalents493,857 3,968 497,825 
 Funds held for clients 1,045,318 2,060 1,047,378 
Liabilities
 Accounts payable and accrued liabilities 1,085,461 3,968 1,089,429 
 Clients’ funds obligations1,047,639 2,060 1,049,699 
The amendments also clarify the assessment of the contractual cash-flow characteristics of certain financial assets and introduce additional disclosure requirements for equity instruments designated at FVOCI and financial instruments with contingent features. These changes will not have a material impact on the Company’s consolidated balance sheet at October 1, 2026.

The following standard has been issued by the IASB and will be effective as at October 1, 2027 for the Company, with earlier application permitted. The Company is in the process of evaluating the impact of this standard on its consolidated financial statements.
IFRS 18 - Presentation and Disclosure in Financial Statements
In April 2024, the IASB issued IFRS 18 Presentation and Disclosure in Financial Statements which is set to replace IAS 1 Presentation of Financial Statements. The new IFRS accounting standard is aimed to improve comparability and transparency of communication in financial statements. While a number of sections from IAS 1 have been brought forward to IFRS 18, the standard introduces new requirements on presentation within the statement of profit or loss, including specified totals and subtotals. It also requires disclosure of management-defined financial performance measures used in public communications outside financial statements and includes new requirements for aggregation and disaggregation of financial information based on the identified roles of the primary financial statements and the notes. Retrospective application is required in both annual and interim financial statements.
CGI Inc. – Consolidated Financial Statements for the years ended September 30, 2026 and 2025    23

Notes to the Consolidated Financial Statements
For the years ended September 30, 2026 and 2025
(tabular amounts only are in thousands of Canadian dollars, except per share data)
4.    Accounts receivable
As at
September 30, 2026		As at
September 30, 2025
$$
Trade (Note 32)
1,272,970 1,343,282 
Tax credits and R&D tax credits207,856 167,599 
Other 110,418 102,896 
1,591,244 1,613,777 
5.Funds held for clients


As at
September 30, 2026		As at
September 30, 2025
$$
 Cash (Note 32)
768,857 704,503 
 Short-term investments
— 33,001 
 Long-term investments8,000 — 
 Long-term bonds (Note 32)
268,461 240,932 
1,045,318 978,436 
CGI Inc. – Consolidated Financial Statements for the years ended September 30, 2026 and 2025    24

Notes to the Consolidated Financial Statements
For the years ended September 30, 2026 and 2025
(tabular amounts only are in thousands of Canadian dollars, except per share data)
6.     Property, plant and equipment
Land and
buildings		Leasehold improvementsFurniture, fixtures and equipmentComputer equipmentTotal
$$$$$
Cost
As at September 30, 202583,194 269,861 152,310 650,214 1,155,579 
 Additions2,464 16,064 9,098 92,560 120,186 
 Business acquisitions (Note 27)
— 79 1,012 12,504 13,595 
 Disposals/retirements(102)(35,847)(9,006)(54,282)(99,237)
 Foreign currency translation adjustment653 (1,375)(1,211)(6,225)(8,158)
As at September 30, 202686,209 248,782 152,203 694,771 1,181,965 
Accumulated depreciation and impairment
As at September 30, 202529,007 178,409 97,877 472,386 777,679 
Depreciation expense (Note 24)
3,044 24,183 13,166 93,388 133,781 
Impairment (Note 24)
— 3,126 1,379 850 5,355 
Disposals/retirements(102)(35,847)(9,006)(54,282)(99,237)
Foreign currency translation adjustment337 (648)(909)(4,050)(5,270)
As at September 30, 202632,286 169,223 102,507 508,292 812,308 
Net carrying amount as at September 30, 202653,923 79,559 49,696 186,479 369,657 
Land and
buildings		Leasehold improvementsFurniture, fixtures and equipmentComputer equipmentTotal
$$$$$
Cost
As at September 30, 202480,530 253,250 145,201 624,319 1,103,300 
Additions 2,378 29,004 6,729 81,430 119,541 
Business acquisitions (Note 27)
737 7,327 4,130 3,201 15,395 
Disposals/retirements(2,857)(28,914)(8,566)(85,580)(125,917)
Foreign currency translation adjustment2,406 9,194 4,816 26,844 43,260 
As at September 30, 202583,194 269,861 152,310 650,214 1,155,579 
Accumulated depreciation and impairment
As at September 30, 202425,983 173,539 90,258 446,697 736,477 
Depreciation expense (Note 24)
3,535 25,166 13,219 92,323 134,243 
Impairment (Note 24)
— 1,532 215 139 1,886 
Disposals/retirements(1,432)(28,914)(8,566)(85,580)(124,492)
Foreign currency translation adjustment921 7,086 2,751 18,807 29,565 
As at September 30, 202529,007 178,409 97,877 472,386 777,679 
Net carrying amount as at September 30, 202554,187 91,452 54,433 177,828 377,900 

CGI Inc. – Consolidated Financial Statements for the years ended September 30, 2026 and 2025    25

Notes to the Consolidated Financial Statements
For the years ended September 30, 2026 and 2025
(tabular amounts only are in thousands of Canadian dollars, except per share data)
7.    Right-of-use assets
PropertiesMotor vehicles and othersComputer
equipment		Total
$$$$
Cost
As at September 30, 20251,161,796 215,028 6,091 1,382,915 
Additions24,740 43,015 3,772 71,527 
Business acquisitions (Note 27)
2,356 935 — 3,291 
Change in estimates and lease modifications55,442 — — 55,442 
Disposals/retirements(59,765)(44,250)(129)(104,144)
Foreign currency translation adjustment(12,443)(2,134)(365)(14,942)
As at September 30, 20261,172,126 212,594 9,369 1,394,089 
Accumulated depreciation and impairment
As at September 30, 2025742,586 93,780 4,562 840,928 
Depreciation expense (Note 24)
109,719 42,920 1,494 154,133 
Impairment (Note 24)
12,511 — — 12,511 
Disposals/retirements(59,089)(37,092)(129)(96,310)
Foreign currency translation adjustment(8,322)(1,022)(224)(9,568)
As at September 30, 2026797,405 98,586 5,703 901,694 
Net carrying amount as at September 30, 2026374,721 114,008 3,666 492,395 
PropertiesMotor vehicles and othersComputer
equipment		Total
$$$$
Cost
As at September 30, 20241,043,012 201,611 10,174 1,254,797 
Additions68,633 53,803 1,428 123,864 
Business acquisitions (Note 27)
65,561 935 — 66,496 
Change in estimates and lease modifications25,972 — — 25,972 
Disposals/retirements(98,942)(52,781)(5,944)(157,667)
Foreign currency translation adjustment57,560 11,460 433 69,453 
As at September 30, 20251,161,796 215,028 6,091 1,382,915 
Accumulated depreciation and impairment
As at September 30, 2024683,857 95,723 9,102 788,682 
Depreciation expense (Note 24)
98,195 39,161 884 138,240 
Impairment (Note 24)
22,549 — — 22,549 
Disposals/retirements(98,605)(46,327)(5,944)(150,876)
Foreign currency translation adjustment36,590 5,223 520 42,333 
As at September 30, 2025742,586 93,780 4,562 840,928 
Net carrying amount as at September 30, 2025419,210 121,248 1,529 541,987 
8.    Contract costs
As at September 30, 2026As at September 30, 2025
CostAccumulated amortization and impairmentNet carrying amountCostAccumulated amortization and impairmentNet carrying amount
$$$$$$
Transition costs789,281 385,177 404,104 690,012 323,563 366,449 
Incentives18,025 11,133 6,892 18,757 14,274 4,483 
807,306 396,310 410,996 708,769 337,837 370,932 

CGI Inc. – Consolidated Financial Statements for the years ended September 30, 2026 and 2025    26

Notes to the Consolidated Financial Statements
For the years ended September 30, 2026 and 2025
(tabular amounts only are in thousands of Canadian dollars, except per share data)
9.     Intangible assets
Software
Software internally developed
Business solutions acquiredBusiness solutions internally developedClient relationships
and backlog		Total
$$$$$$
Cost
As at September 30, 2025272,147 115,975 79,242 1,049,370 1,694,208 3,210,942 
Additions44,776 3,889 — 84,058 — 132,723 
Business acquisitions (Note 27)
1,630 193 1,740 — 10,513 14,076 
Disposals/retirements(41,882)(3,310)(13,947)(16,122)— (75,261)
Foreign currency translation adjustment(423)(296)390 13,025 3,877 16,573 
As at September 30, 2026276,248 116,451 67,425 1,130,331 1,708,598 3,299,053 
Accumulated amortization and
impairment
As at September 30, 2025191,116 91,914 64,938 644,582 1,330,386 2,322,936 
Amortization expense (Note 24)
63,609 9,596 5,497 85,397 66,408 230,507 
Impairment (Note 24)
— — — 3,505 — 3,505 
Disposals/retirements(41,882)(3,310)(13,947)(16,122)— (75,261)
Foreign currency translation adjustment(527)(209)397 9,318 2,006 10,985 
As at September 30, 2026212,316 97,991 56,885 726,680 1,398,800 2,492,672 
Net carrying amount as at September 30, 202663,932 18,460 10,540 403,651 309,798 806,381 
Software
Software internally developed
Business solutions acquiredBusiness solutions internally developedClient relationships
and backlog		Total
$$$$$$
Cost
As at September 30, 2024256,178 113,070 81,776 928,297 1,412,161 2,791,482 
Additions69,939 7,356 — 94,334 — 171,629 
Business acquisitions (Note 27)
731 16 — — 202,954 203,701 
Disposals/retirements(62,037)(5,829)(5,296)(7,837)— (80,999)
Foreign currency translation adjustment7,336 1,362 2,762 34,576 79,093 125,129 
As at September 30, 2025272,147 115,975 79,242 1,049,370 1,694,208 3,210,942 
Accumulated amortization and
impairment
As at September 30, 2024193,111 84,988 63,320 544,463 1,187,025 2,072,907 
Amortization expense (Note 24)
55,579 11,710 3,137 83,228 77,985 231,639 
Impairment (Note 24)
— — 1,170 5,774 — 6,944 
Disposals/retirements(62,037)(5,829)(5,296)(7,837)— (80,999)
Foreign currency translation adjustment4,463 1,045 2,607 18,954 65,376 92,445 
As at September 30, 2025191,116 91,914 64,938 644,582 1,330,386 2,322,936 
Net carrying amount as at September 30, 2025
81,031 24,061 14,304 404,788 363,822 888,006 

CGI Inc. – Consolidated Financial Statements for the years ended September 30, 2026 and 2025    27

Notes to the Consolidated Financial Statements
For the years ended September 30, 2026 and 2025
(tabular amounts only are in thousands of Canadian dollars, except per share data)
10.     Other long-term assets
As at
September 30, 2026		As at
September 30, 2025
$$
Long-term prepaid services28,845 29,169 
Insurance contracts held to fund defined benefit pension and life assurance
arrangements - reimbursement rights (Note 17)
18,376 20,139 
Retirement benefits assets (Note 17)
76,884 55,156 
Deposits18,096 18,609 
Deferred financing fees3,200 2,434 
Other20,711 17,813 
166,112 143,320 

11.Long-term financial assets
As at
September 30, 2026		As at
September 30, 2025
$$
Deferred compensation plan assets (Notes 17 and 32)
131,129 125,388 
Long-term investments (Note 32)
26,355 27,687 
Long-term receivables8,274 8,509 
Long-term derivative financial instruments (Note 32)
2,069 854 
167,827 162,438 

12.Goodwill
The Company's operations are managed through the following nine operating segments: Western and Southern Europe (mainly France, Portugal and Spain); United States (U.S.) Commercial and State Government; United Kingdom (U.K.) and Australia; U.S. Federal; Canada; Scandinavia, Northwest and Central-East Europe (mainly Sweden, Netherlands, Norway, Denmark and Czech Republic); Finland, Poland and Baltics; Germany; and Asia Pacific Global Delivery Centers of Excellence (mainly India and Philippines) (Asia Pacific).
Effective October 1, 2025, the Company realigned its management structure, resulting in the transfer of our Luxembourg operations from the Western and Southern Europe operating segment to the Scandinavia, Northwest and Central-East Europe operating segment. The Company reallocated goodwill to the revised CGUs using their relative fair value. There were no triggering events for an early impairment test before the reclassification.
The operating segments reflect the fiscal year 2026 realigned management structure and the way that the Chief Operating Decision-Maker, who is the President and Chief Executive Officer of the Company, evaluates the business.
The Company completed the annual impairment test during the fourth quarter of the fiscal year 2026 and did not identify any impairment.
The movements in goodwill were as follows:
Western and Southern EuropeU.S. Commercial and State GovernmentU.K. and AustraliaU.S. FederalCanadaScandinavia, Northwest and Central- East EuropeFinland, Poland and BalticsGermanyAsia Pacific Total
$$$$$$$$$$
As at September 30, 20251,996,724 1,571,267 2,205,453 1,578,711 1,170,898 1,412,445 691,489 848,262 269,533 11,744,782 
Goodwill reallocation(17,828)— — — — 17,828 — — — — 
Business acquisitions (Note 27)
29,530 87,111 (27,731)— 35,125 5,594 41,947 (4,969)— 166,607 
Foreign currency translation adjustment(24,888)33,334 24,717 32,184 — (24,960)(11,288)(15,284)6,622 20,437 
As at September 30, 20261,983,538 1,691,712 2,202,439 1,610,895 1,206,023 1,410,907 722,148 828,009 276,155 11,931,826 
CGI Inc. – Consolidated Financial Statements for the years ended September 30, 2026 and 2025    28

Notes to the Consolidated Financial Statements
For the years ended September 30, 2026 and 2025
(tabular amounts only are in thousands of Canadian dollars, except per share data)
12.Goodwill (continued)
Key assumptions in goodwill impairment testing
The key assumptions for the CGUs are disclosed in the following tables for the years ended September 30:
2026Western and Southern EuropeU.S. Commercial and State GovernmentU.K. and AustraliaU.S. FederalCanadaScandinavia, Northwest and Central- East EuropeFinland, Poland and BalticsGermanyAsia Pacific
%%%%%%%%%
Pre-tax WACC9.5 10.9 10.3 11.8 8.2 8.0 9.2 10.4 14.9 
Long-term growth rate of net operating cash flows1
2.0 2.0 2.0 2.0 2.0 2.0 2.0 1.6 2.0 
2025Western and Southern EuropeU.S. Commercial and State GovernmentU.K. and AustraliaU.S. FederalCanadaScandinavia, Northwest and Central-East EuropeFinland, Poland and BalticsGermanyAsia Pacific
%%%%%%%%%
Pre-tax WACC9.7 11.3 11.1 11.4 9.1 8.5 9.9 10.1 15.9 
Long-term growth rate of net operating cash flows1
2.0 2.0 2.0 2.0 2.0 2.0 2.0 1.9 2.0 
1    The long-term growth rate is based on the lower of published industry research growth and 2.0%.
Variations in the Company’s assumptions and estimates, particularly in the pre-tax WACC and long-term growth rate could have a significant impact on fair value. For the year ended September 30, 2026, a 1.0 percentage-point decrease in the long-term growth rate and a 1.0 percentage-point increase in the pre-tax WACC, whether assessed individually or in combination, would not have resulted in an impairment charge in any CGU.
13.     Long-term debt
As at
September 30, 2026		As at
September 30, 2025
$$
2021 U.S. Senior Notes of $568,600 (U.S. $400,000) repayable in September 20311
564,445 1,386,564 
2021 CAD Senior Notes of $600,000 repayable in September 20282
598,587 597,892 
2024 CAD Senior Notes of $300,000 repayable in September 2027 and of $450,000 repayable in September 20293
748,001 747,001 
2025 U.S. Senior Notes of $923,975 (U.S $650,000) repayable in March 20304
915,007 894,509 
2026 CAD Senior Notes of $250,000 repayable in December 2029 and of $250,000 repayable in June 20315
497,328 — 
Other long-term debt990 11,869 
3,324,358 3,637,835 
Current portion299,826 845,253 
Non-current portion3,024,532 2,792,582 
1    In September 2026, the Company repaid the first series of the senior unsecured notes issued in 2021 of U.S. $600,000,000, for a total amount of $834,587,000, and settled the related cross-currency swaps (Note 32). The remaining series of senior unsecured notes issued in 2021 of U.S. $400,000,000 (2021 U.S. Senior Notes), less financial fees, is due in September 2031, with an interest rate of 2.30%.
2    The senior unsecured notes issued in 2021 of $600,000,000 (2021 CAD Senior Notes), less financing fees, are due in September 2028, with an interest rate of 2.10%.
3    The senior unsecured notes issued in 2024 of $750,000,000 (2024 CAD Senior Notes), less financing fees, are comprised of two series of senior unsecured notes with a weighted average maturity of 2.1 years and a weighted average interest rate of 4.08% as at September 30, 2026.
4    The senior unsecured notes issued in 2025 of U.S. $650,000,000 (2025 U.S. Senior Notes), less financing fees, are due in March 2030, with an interest rate of 4.95%. On December 18, 2025, the Company launched an offer to exchange all of its outstanding U.S. $650,000,000 in aggregate principal amount of senior unsecured notes for an equivalent amount of notes registered with the U.S. Securities and Exchange Commission. The exchange offer was completed on January 26, 2026.
5    In September 2026, the Company issued senior unsecured notes (2026 CAD Senior Notes) for a total principal amount of $500,000,000, less financing fees. This issuance is comprised of two series of senior unsecured notes with a weighted average maturity of 4 years and a weighted average interest rate of 4.34%.

CGI Inc. – Consolidated Financial Statements for the years ended September 30, 2026 and 2025    29

Notes to the Consolidated Financial Statements
For the years ended September 30, 2026 and 2025
(tabular amounts only are in thousands of Canadian dollars, except per share data)
13.     Long-term debt (continued)
The Company has an unsecured committed revolving credit facility available which was increased on April 28, 2026 to an amount of $2,500,000,000 that is comprised of a three-year tranche of $1,000,000,000 which matures in 2029 and a five-year tranche of $1,500,000,000 which matures in 2031. Both tranches can be further extended. This facility bears interest at variable reference rate benchmarks, plus a variable margin that is determined based on the Company's credit rating. As at September 30, 2026, there was no amount drawn upon this facility. An amount of $3,609,000 has been committed against this facility to cover various letters of credit issued for clients and other parties. The unsecured committed revolving credit facility contains covenants that require the Company to maintain certain financial ratios (Note 33). The increase in the facility resulted in no material changes in the terms and conditions, including interest rates and banking covenants. As at September 30, 2026, the Company was in compliance with these covenants.
14.     Provisions
Severances1
Decommissioning liabilities2
Others3
Total
$$$$
As at September 30, 2025
134,316 27,938 21,742 183,996 
Additional provisions55,984 4,298 37,284 97,566 
Business acquisitions— — 3,255 3,255 
Utilized amounts (131,282)(4,153)(15,023)(150,458)
Reversals of unused amounts (8,968)(3,185)(3,980)(16,133)
Discount rate adjustment and imputed
interest
— 448 313 761 
Foreign currency translation adjustment(1,698)(133)(149)(1,980)
As at September 30, 2026
48,352 25,213 43,442 117,007 
Current portion43,532 9,260 39,728 92,520 
Non-current portion4,820 15,953 3,714 24,487 
1    See Note 25, Restructuring, acquisition and related integration costs.
2    As at September 30, 2026, the decommissioning liabilities were based on the expected cash flows of $27,206,000 and were discounted at a weighted average rate of 1.98%. The timing of settlements of these obligations ranges between one and fourteen years as at September 30, 2026. The reversals of unused amounts are due to favourable settlements.
3    As at September 30, 2026, others included provisions for litigations, claims, interests, onerous leases, revenue-generating contracts, as well as onerous supplier contracts.
15.Other long-term liabilities
As at
September 30, 2026		As at
September 30, 2025
$$
 Deferred revenue116,725 153,872 
 Deferred compensation plan liabilities (Note 17)
145,083 139,317 
 Other
52,461 47,984 
314,269 341,173 

CGI Inc. – Consolidated Financial Statements for the years ended September 30, 2026 and 2025    30

Notes to the Consolidated Financial Statements
For the years ended September 30, 2026 and 2025
(tabular amounts only are in thousands of Canadian dollars, except per share data)
16.     Income taxes
Year ended September 30
20262025
$$
Current income tax expense
Current income tax expense in respect of the current year
607,679 628,169 
Adjustments recognized in the current year in relation to the income tax recovery of prior
years
(25,138)(44,889)
Total current income tax expense
582,541 583,280 
Deferred income tax expense (recovery)
Deferred income tax expense (recovery) relating to the origination and reversal of temporary differences63,345 (33,531)
Deferred income tax recovery relating to changes in tax rates
— (1,619)
Adjustments recognized in the current year in relation to the deferred income tax expense of prior years
21,171 35,775 
Total deferred income tax expense
84,516 625 
Total income tax expense
667,057 583,905 
The Company’s effective income tax rate differs from the combined Federal and Provincial Canadian statutory tax rate as follows:
Year ended September 30
20262025
%
%
Company's statutory tax rate26.5 26.5 
Effect of foreign tax rate differences(0.4)(0.7)
Final determination from agreements with tax authorities and expirations of statutes of limitations(0.2)(0.4)
Non-deductible and tax exempt items0.8 0.5 
Minimum income tax charge0.2 0.2 
Changes in tax laws and rates— (0.1)
Effective income tax rate26.9 26.0 
The continuity schedule of deferred tax balances is as follows:
As at
September 30, 2025		Additions
 from
business acquisitions		Recognized in earningsRecognized
in other comprehensive income		Recognized
in equity		Foreign currency translation adjustment and otherAs at
September 30,
 2026
$$$$$$$
 Accounts payable, accrued
compensation and liabilities, provisions, and other long-term liabilities
116,249 52 (152)— (2,477)(210)113,462 
Tax benefits on losses carried
   forward		53,962 1,375 (341)— — 622 55,618 
Retirement benefits obligations18,394 2,203 192 (11,130)— (292)9,367 
Capitalized research and
   development 		198,382 95 (57,013)— — 3,048 144,512 
Lease liabilities168,052 2,154 (12,890)— — (1,890)155,426 
PP&E, contract costs,
intangible assets and other long-term assets
(127,163)(335)(6,095)— — (305)(133,898)
Right-of-use assets(131,905)(2,154)5,646 — — 1,428 (126,985)
Work in progress(20,071)— (1,358)— — 181 (21,248)
Goodwill(116,788)— (11,401)— — (3,073)(131,262)
Refundable tax credits on
   salaries		(19,243)422 (1,501)— — 189 (20,133)
Cash flow and net investment      hedges20,253 — (3,539)13,514 — (218)30,010 
Other7,489 4,300 3,936 1,969 — (419)17,275 
Deferred taxes, net167,611 8,112 (84,516)4,353 (2,477)(939)92,144 
CGI Inc. – Consolidated Financial Statements for the years ended September 30, 2026 and 2025    31

Notes to the Consolidated Financial Statements
For the years ended September 30, 2026 and 2025
(tabular amounts only are in thousands of Canadian dollars, except per share data)
16.     Income taxes (continued)
As at September 30, 2024Additions
from
business acquisitions		Recognized in earningsRecognized
in other comprehensive income		Recognized in equityForeign currency translation
adjustment and
other		As at
September 30,
2025
$$$$$$$
 Accounts payable, accrued
compensation and liabilities, provisions, and other long-term liabilities
132,021 — (13,894)— (5,811)3,933 116,249 
Tax benefits on losses carried
forward		51,180 — 618 — — 2,164 53,962 
Retirement benefits obligations27,034 — 2,297 (13,062)— 2,125 18,394 
Capitalized research and
   development		174,467 — 18,545 — — 5,370 198,382 
Lease liabilities156,479 4,360 (712)— — 7,925 168,052 
PP&E, contract costs,
intangible assets and other long-term assets
(73,149)(44,860)(4,353)— — (4,801)(127,163)
Right-of-use assets(123,982)(4,360)3,237 — — (6,800)(131,905)
Work in progress(15,621)— (3,593)— — (857)(20,071)
Goodwill(93,682)— (20,157)— — (2,949)(116,788)
Refundable tax credits on
salaries		(24,943)(532)6,257 — — (25)(19,243)
Cash flow and net investment     hedges14,060 — 26 5,873 — 294 20,253 
Other(2,429)— 11,103 (285)— (900)7,489 
Deferred taxes, net221,435 (45,392)(626)(7,474)(5,811)5,479 167,611 
The deferred tax balances are presented as follows in the consolidated balance sheets:
As at
September 30, 2026		As at
September 30, 2025
$$
Deferred tax assets153,108 239,284 
Deferred tax liabilities(60,964)(71,673)
92,144 167,611 
As at September 30, 2026, the Company had $206,288,000 ($203,415,000 as at September 30, 2025) in operating tax losses carried forward, of which $81,680,000 ($63,937,000 as at September 30, 2025) expire at various dates from 2031 to 2046 and $124,608,000 ($139,478,000 as at September 30, 2025) have no expiry dates. As at September 30, 2026, a deferred income tax asset of $50,714,000 ($48,989,000 as at September 30, 2025) has been recognized on $192,239,000 ($188,978,000 as at September 30, 2025) of these losses. The deferred income tax assets are recognized only to the extent that it is probable that taxable income will be available against which the unused tax losses can be utilized. As at September 30, 2026, the Company had $14,049,000 ($14,437,000 as at September 30, 2025) of the unrecognized operating tax losses that have no expiry dates.
As at September 30, 2026, the Company had $526,290,000 ($471,820,000 as at September 30, 2025) in non-operating tax losses carried forward that have no expiry dates. As at September 30, 2026, a deferred income tax asset of $4,904,000 ($4,973,000 as at September 30, 2025) has been recognized on $18,986,000 ($19,254,000 as at September 30, 2025) of these losses. As at September 30, 2026, the Company had $507,304,000 ($452,566,000 as at September 30, 2025) of unrecognized non-operating tax losses.
As at September 30, 2026, the Company had $1,202,610,000 ($667,609,000 as at September 30, 2025) of cash and cash equivalents held by foreign subsidiaries. The tax implications of the repatriation of cash and cash equivalents not considered indefinitely reinvested have been accounted for and will not materially affect the Company’s liquidity. In addition, the Company has not recorded deferred tax liabilities on undistributed earnings of $11,764,028,000 ($11,167,109,000 as at September 30, 2025) coming from its foreign subsidiaries as they are considered indefinitely reinvested. Upon distribution of these earnings in the form of dividends or otherwise, the Company may be subject to taxation.


CGI Inc. – Consolidated Financial Statements for the years ended September 30, 2026 and 2025    32

Notes to the Consolidated Financial Statements
For the years ended September 30, 2026 and 2025
(tabular amounts only are in thousands of Canadian dollars, except per share data)
16.     Income taxes (continued)
Organization for Economic Co-operation and Development (OECD) Pillar Two Rules
The company is subject to the minimum top-up tax under the Pillar two tax legislation. The current tax recorded during the year is nil.
The company has applied the temporary recognition exception in relation to accounting and disclosure for deferred taxes arising from the implementation of the Pillar two rules.
17.Employee benefits
The Company operates various post-employment plans, including defined benefit and defined contribution pension plans as well as other benefit plans for its employees.
DEFINED BENEFIT PLANS
The Company operates defined benefit pension plans primarily for the benefit of employees in the U.K., France and Germany, with smaller plans in other countries. The benefits are based on pensionable salary and years of service and most of them are funded with assets held in separate funds.
The defined benefit plans expose the Company to interest risk, inflation risk, longevity risk, currency risk and market investment risk.
The following description focuses mainly on plans registered in the U.K., France and Germany:
U.K.
In the U.K., the Company has three defined benefit pension plans, the CMG U.K. Pension Scheme, the Logica U.K. Pension & Life Assurance Scheme and the Logica Defined Benefit Pension Plan.
The CMG U.K. Pension Scheme is closed to new employees and is closed to further accrual of rights for existing employees. The Logica U.K. Pension & Life Assurance Scheme is still open but only for employees who come from the civil service with protected pensions. The Logica Defined Benefit Pension Plan is closed to new employees and is closed to further accrual of rights for existing employees. The plan was created to mirror the Electricity Supply Pension Scheme and was created for employees that worked for National Grid and Welsh Water with protected benefits.
Both the Logica U.K. Pension & Life Assurance Scheme and the Logica Defined Benefit Pension Plan are employer and employee based contribution plans.
The trustees are the custodians of the defined benefit pension plans and are responsible for the plan administration, including investment strategies. The trustees review periodically the investment and the asset allocation policies. As such, the CMG U.K. Pension Scheme policy is to target an allocation up to a maximum of 80% to return-seeking assets such as equities; the Logica U.K. Pension & Life Assurance Scheme policy is to invest 15% of the scheme assets in equities and 85% in bonds; and the Logica Defined Benefit Pension Plan policy is to invest 10% of the plan assets in equities and 90% in bonds.
The U.K. Pensions Act 2004 requires that full formal actuarial valuations are carried out at least every three years to determine the contributions that the Company should pay in order for the plan to meet its statutory objective, taking into account the assets already held. In the interim years, the trustees need to obtain estimated funding updates unless the scheme has less than 100 employees in total.

CGI Inc. – Consolidated Financial Statements for the years ended September 30, 2026 and 2025    33

Notes to the Consolidated Financial Statements
For the years ended September 30, 2026 and 2025
(tabular amounts only are in thousands of Canadian dollars, except per share data)
17.     Employee benefits (continued)
DEFINED BENEFIT PLANS (CONTINUED)
U.K. (continued)
The latest funding actuarial valuations of the three defined benefit pension plans described above were performed as at
September 30, 2024 and the results were finalized during the year ended September 30, 2026 with the following recommendations:
–The actuarial valuation of the CMG U.K. Pension Scheme reported a deficit of $4,802,000. It specified that no supplementary contributions were required in order to reach the plan funding objectives. Since January 1, 2022, the Company did not contribute to the plan; and
–The actuarial valuation of the Logica U.K. Pension & Life Assurance Scheme reported a surplus of $3,216,000. It specified that no supplementary contributions were required in order to reach the plan funding objectives. During fiscal 2026, the Company contributed an amount of $182,000 to cover service costs; and
–The actuarial valuation of the Logica Defined Benefit Pension Plan reported a surplus of $14,524,000. It specified that no supplementary contributions were required in order to reach the plan funding objectives. Since November 30, 2019, the Company did not contribute to the plan.
France
In France, the retirement indemnities are provided in accordance with the Labour Code. Upon retirement, employees receive an indemnity, depending on the salary and seniority in the Company, in the form of a lump-sum payment.
Germany
In Germany, the Company has numerous defined benefit pension plans which are all closed to new employees. In the majority of the plans, upon retirement of employees, the benefits are in the form of a monthly pension and in a few plans, the employees receive an indemnity in the form of a lump-sum payment. There are no mandatory funding requirements. The plans are funded by the contributions made by the Company. In some plans, insurance policies are taken out to fund retirement benefit plans. These do not qualify as plan assets and are presented as reimbursement rights, unless they are part of a reinsured support fund or are pledged to the employees.

CGI Inc. – Consolidated Financial Statements for the years ended September 30, 2026 and 2025    34

Notes to the Consolidated Financial Statements
For the years ended September 30, 2026 and 2025
(tabular amounts only are in thousands of Canadian dollars, except per share data)
17.     Employee benefits (continued)
DEFINED BENEFIT PLANS (CONTINUED)
The following tables present amounts for post-employment benefits plans included in the consolidated balance sheets:
As at September 30, 2026U.K.FranceGermanyOtherTotal
$$$$$
Defined benefit obligations(528,119)(93,641)(68,319)(126,789)(816,868)
Fair value of plan assets604,867 — 12,657 88,201 705,725 
76,748 (93,641)(55,662)(38,588)(111,143)
Fair value of reimbursement rights— — 17,979 397 18,376 
Net asset (liability) recognized in the balance sheet76,748 (93,641)(37,683)(38,191)(92,767)

Presented as:
Other long-term assets (Note 10)
 Insurance contracts held to fund defined
benefit pension and life assurance
arrangements - reimbursement rights
— — 17,979 397 18,376 
Retirement benefits assets76,748 — — 136 76,884 
Retirement benefits obligations— (93,641)(55,662)(38,724)(188,027)
76,748 (93,641)(37,683)(38,191)(92,767)

As at September 30, 2025U.K.FranceGermanyOtherTotal
$$$$$
Defined benefit obligations(555,956)(99,215)(77,086)(119,014)(851,271)
Fair value of plan assets611,040 — 13,254 83,418 707,712 
55,084 (99,215)(63,832)(35,596)(143,559)
Fair value of reimbursement rights— — 19,752 387 20,139 
Net asset (liability) recognized in the balance sheet55,084 (99,215)(44,080)(35,209)(123,420)

Presented as:
Other long-term assets (Note 10)
 Insurance contracts held to fund defined
benefit pension and life assurance
arrangements - reimbursement rights
— — 19,752 387 20,139 
Retirement benefits assets55,084 — — 72 55,156 
Retirement benefits obligations— (99,215)(63,832)(35,668)(198,715)
55,084 (99,215)(44,080)(35,209)(123,420)

CGI Inc. – Consolidated Financial Statements for the years ended September 30, 2026 and 2025    35

Notes to the Consolidated Financial Statements
For the years ended September 30, 2026 and 2025
(tabular amounts only are in thousands of Canadian dollars, except per share data)
17.     Employee benefits (continued)
DEFINED BENEFIT PLANS (CONTINUED)
Defined benefit obligationsU.K.FranceGermanyOtherTotal
$$$$$
As at September 30, 2025555,956 99,215 77,086 119,014 851,271 
 Current service cost300 6,990 309 8,566 16,165 
 Interest cost30,933 3,586 2,689 5,904 43,112 
Past service cost— — — 9,906 9,906 
 Actuarial gains due to change in financial
assumptions1
(37,047)(12,400)(6,886)(6,956)(63,289)
 Actuarial losses (gains) due to change in
demographic assumptions1
2,625 (18)— (116)2,491 
 Actuarial losses (gains) due to experience1
3,223 2,143 (80)(96)5,190 
 Plan participant contributions48 — — 164 212 
 Benefits paid from the plan(31,067)— (592)(4,303)(35,962)
 Benefits paid directly by employer— (3,556)(3,216)(949)(7,721)
 Foreign currency translation adjustment1
3,148 (2,319)(991)(4,345)(4,507)
As at September 30, 2026528,119 93,641 68,319 126,789 816,868 
 Defined benefit obligations of unfunded
plans
— 93,641 — 18,765 112,406 
 Defined benefit obligations of funded plans 528,119 — 68,319 108,024 704,462 
As at September 30, 2026528,119 93,641 68,319 126,789 816,868 

Defined benefit obligationsU.K.France Germany OtherTotal
$$$$$
As at September 30, 2024620,308 95,366 74,715 107,559 897,948 
 Current service cost336 7,402 376 8,176 16,290 
 Interest cost30,485 3,234 2,473 4,989 41,181 
 Past service cost— — — 2,521 2,521 
 Business acquisitions (Note 27)
— 7,860 — — 7,860 
 Actuarial gains due to change in
financial assumptions1
(61,738)(12,876)(2,563)(2,805)(79,982)
 Actuarial (gains) losses due to change in
demographic assumptions1
(10,673)(958)— 11 (11,620)
 Actuarial (gains) losses due to experience1
(10,443)(6,719)(125)62 (17,225)
 Plan participant contributions57 — — 164 221 
 Benefits paid from the plan(32,269)— (156)(3,819)(36,244)
 Benefits paid directly by employer— (2,793)(4,069)(909)(7,771)
 Foreign currency translation adjustment1
19,893 8,699 6,435 3,065 38,092 
As at September 30, 2025555,956 99,215 77,086 119,014 851,271 
 Defined benefit obligations of unfunded
plans
— 99,215 — 22,007 121,222 
 Defined benefit obligations of funded plans555,956 — 77,086 97,007 730,049 
As at September 30, 2025555,956 99,215 77,086 119,014 851,271 
1    Amounts recognized in other comprehensive income.







CGI Inc. – Consolidated Financial Statements for the years ended September 30, 2026 and 2025    36

Notes to the Consolidated Financial Statements
For the years ended September 30, 2026 and 2025
(tabular amounts only are in thousands of Canadian dollars, except per share data)
17.     Employee benefits (continued)
DEFINED BENEFIT PLANS (CONTINUED)
Plan assets and reimbursement rightsU.K.FranceGermanyOtherTotal
$$$$$
As at September 30, 2025611,040 — 33,006 83,805 727,851 
 Interest income on plan assets33,953 — 1,227 4,549 39,729 
 Employer contributions182 3,556 3,419 10,025 17,182 
 Return on assets excluding interest income1
(9,632)— (2,735)(706)(13,073)
 Plan participant contributions48 — — 151 199 
 Benefits paid from the plan(31,067)— (592)(4,303)(35,962)
 Benefits paid directly by employer— (3,556)(3,216)(949)(7,721)
 Administration expenses paid from the plan(3,498)— — — (3,498)
 Foreign currency translation adjustment1
3,841 — (473)(3,974)(606)
As at September 30, 2026604,867 — 30,636 88,598 724,101 
 Plan assets604,867 — 12,657 88,201 705,725 
 Reimbursement rights— — 17,979 397 18,376 
As at September 30, 2026604,867 — 30,636 88,598 724,101 

Plan assets and reimbursement rightsU.K.France GermanyOtherTotal
$$$$$
As at September 30, 2024642,538 — 31,899 75,266 749,703 
 Interest income on plan assets31,518 — 1,090 4,352 36,960 
 Employer contributions358 2,793 4,545 8,771 16,467 
 Return on assets excluding interest income1
(48,857)— (2,975)(636)(52,468)
 Plan participant contributions57 — — 119 176 
 Benefits paid from the plan(32,269)— (156)(3,819)(36,244)
 Benefits paid directly by employer— (2,793)(4,069)(909)(7,771)
 Administration expenses paid from the plan(3,432)— — — (3,432)
 Foreign currency translation adjustment1
21,127 — 2,672 661 24,460 
As at September 30, 2025611,040 — 33,006 83,805 727,851 
 Plan assets611,040 — 13,254 83,418 707,712 
 Reimbursement rights— — 19,752 387 20,139 
As at September 30, 2025611,040 — 33,006 83,805 727,851 
1    Amounts recognized in other comprehensive income.


CGI Inc. – Consolidated Financial Statements for the years ended September 30, 2026 and 2025    37

Notes to the Consolidated Financial Statements
For the years ended September 30, 2026 and 2025
(tabular amounts only are in thousands of Canadian dollars, except per share data)
17.     Employee benefits (continued)
DEFINED BENEFIT PLANS (CONTINUED)
The plan assets at the end of the years consist of:
As at September 30, 2026U.K.GermanyOtherTotal
$$$$
 Investment funds1
370,982 — — 370,982 
 Quoted equities133,800 — — 133,800 
 Quoted bonds94,452 — — 94,452 
 Cash5,633 — 69 5,702 
 Insurance policies— 12,657 88,132 100,789 
604,867 12,657 88,201 705,725 

As at September 30, 2025U.K.GermanyOtherTotal
$$$$
 Investment funds1
232,072 — — 232,072 
 Quoted equities196,682 — — 196,682 
 Quoted bonds159,475 — — 159,475 
 Cash22,811 — 66 22,877 
 Insurance policies— 13,254 83,352 96,606 
611,040 13,254 83,418 707,712 
1    Investment funds are mainly composed of government gilts and other government securities.

Plan assets do not include any shares of the Company, property occupied by the Company or any other assets used by the Company.
The following table summarizes the expense1 recognized in the consolidated statements of earnings:
Year ended September 30
20262025
$$
 Current service cost16,165 16,290 
 Past service cost9,906 2,521 
 Net interest on net defined benefit obligations or assets 3,383 4,221 
 Administration expenses3,498 3,432 
32,952 26,464 
1    The expense was presented as costs of services, selling and administrative for an amount of $26,071,000 and as net finance costs for an amount of
$6,881,000 (Note 26) ($18,811,000 and $7,653,000, respectively for the year ended September 30, 2025).


CGI Inc. – Consolidated Financial Statements for the years ended September 30, 2026 and 2025    38

Notes to the Consolidated Financial Statements
For the years ended September 30, 2026 and 2025
(tabular amounts only are in thousands of Canadian dollars, except per share data)
17.     Employee benefits (continued)
DEFINED BENEFIT PLANS (CONTINUED)
Actuarial assumptions
The following are the principal actuarial assumptions calculated as weighted averages of the defined benefit obligations. The assumed discount rates, future salary and pension increases, inflation rates and mortality all have a significant effect on the accounting valuation.
As at September 30, 2026U.KFranceGermanyOther
%%%%
 Discount rate6.55 4.84 4.84 5.82 
 Future salary increases0.32 2.70 2.50 1.69 
 Future pension increases3.04 — 2.10 0.22 
 Inflation rate3.19 2.00 2.00 3.83 
As at September 30, 2025U.K.FranceGermany Other
%%%%
 Discount rate5.76 3.70 3.70 5.09 
 Future salary increases0.31 2.75 2.50 2.30 
 Future pension increases2.85 — 2.10 0.29 
 Inflation rate3.06 2.00 2.00 3.49 

The average longevity over 65 of an employee presently at age 45 and 65 are as follows:
As at September 30, 2026U.K.Germany
(in years)
 Longevity at age 65 for current employees
Males21.521.2
Females23.823.9
 Longevity at age 45 for current employees
Males22.824.5
Females25.226.7
As at September 30, 2025U.K.Germany
(in years)
 Longevity at age 65 for current employees
Males21.421.1
Females23.624.4
 Longevity at age 45 for current employees
Males22.723.8
Females25.126.6


CGI Inc. – Consolidated Financial Statements for the years ended September 30, 2026 and 2025    39

Notes to the Consolidated Financial Statements
For the years ended September 30, 2026 and 2025
(tabular amounts only are in thousands of Canadian dollars, except per share data)
17.     Employee benefits (continued)
DEFINED BENEFIT PLANS (CONTINUED)
Actuarial assumptions (continued)
Assumptions regarding future mortality are set based on actuarial advice in accordance with published statistics and experience in each country. Mortality assumptions for the most significant countries are based on the following post-retirement mortality tables for the year ended September 30, 2026: (1) U.K.: CMG U.K. Pension Scheme: 94% of the mortality rates in the S4PA tables for males and S4PA Middle tables for females; Logica U.K. Pension & Life Assurance Scheme: 102% of the mortality rates in the S4PA tables for males and 100% of the mortality rates in the S4PA Middle tables for females; Logica Defined Benefit Pension Plan: 100% of the mortality rates in the S4PA tables for males and 98% of the mortality rates in the S4PA Middle tables for females. For all three U.K. plans, the allowance for future mortality improvements has been updated to be in line with the CMI 2023 projections model, with core parameters and a long-term improvement rate of 1.25% p.a., (2) Germany: Heubeck RT2018G and (3) France: INSEE 2020-2022.
The following tables show the sensitivity of the defined benefit obligations to changes in the principal actuarial assumptions:
As at September 30, 2026U.K.FranceGermany
$$$
 Increase of 0.25% in the discount rate
(13,331)(2,446)(1,362)
 Decrease of 0.25% in the discount rate
13,927 2,542 1,414 
 Salary increase of 0.25%
81 2,661 10 
 Salary decrease of 0.25%
(77)(2,568)(8)
 Pension increase of 0.25%
7,962 — 727 
 Pension decrease of 0.25%
(7,796)— (705)
 Increase of 0.25% in inflation rate
8,510 2,661 727 
 Decrease of 0.25% in inflation rate
(8,342)(2,568)(705)
 Increase of one year in life expectancy
12,728 650 1,615 
 Decrease of one year in life expectancy
(12,944)(695)(1,449)
As at September 30, 2025U.K.France Germany
$$$
 Increase of 0.25% in the discount rate
(15,218)(2,819)(1,725)
 Decrease of 0.25% in the discount rate
15,941 2,937 1,795 
 Salary increase of 0.25%
88 3,040 20 
 Salary decrease of 0.25%
(88)(2,929)(18)
 Pension increase of 0.25%
9,573 — 924 
 Pension decrease of 0.25%
(8,329)— (893)
 Increase of 0.25% in inflation rate
10,803 3,040 924 
 Decrease of 0.25% in inflation rate
(10,577)(2,929)(893)
 Increase of one year in life expectancy
13,356 686 2,044 
 Decrease of one year in life expectancy
(13,750)(733)(1,828)
The sensitivity analysis above has been based on a method that extrapolates the impact on the defined benefit obligations as a result of reasonable changes in key assumptions occurring at the end of the year.
The remaining weighted average duration of the defined benefit obligations are as follows:
Year ended September 30
20262025
(in years)
 U.K.1012
 France1616
 Germany 99
 Other89
The Company expects to contribute $10,215,000 to defined benefit plans during the next year, of which $436,000 relates to the U.K. plans, and $9,779,000 relates to the other plans.
CGI Inc. – Consolidated Financial Statements for the years ended September 30, 2026 and 2025    40

Notes to the Consolidated Financial Statements
For the years ended September 30, 2026 and 2025
(tabular amounts only are in thousands of Canadian dollars, except per share data)
17.     Employee benefits (continued)
DEFINED CONTRIBUTION PLANS
The Company also operates defined contribution pension plans. In some countries, contributions are made into the state pension plans. The pension cost for defined contribution plans amounted to $347,956,000 in 2026 ($324,486,000 in 2025).
In addition, in Sweden, the Company contributes to a multi-employer plan, Alecta SE (Alecta) pension plan, which is a defined benefit pension plan. This pension plan is classified as a defined contribution plan as sufficient information is not available to use defined benefit accounting. Alecta lacks the possibility of establishing an exact distribution of assets and provisions to the respective employers. The Company’s proportion of the total contributions to the plan is 0.74% and the Company’s proportion of the total number of active employees in the plan is 0.46%.
Alecta uses a collective funding ratio to determine the surplus or deficit in the pension plan. Any surplus or deficit in the plan will affect the amount of future contributions payable. The collective funding is the difference between Alecta’s assets and the commitments to the policy holders and insured individuals. The collective funding ratio is normally allowed to vary between 125% and 170%. As at September 30, 2026, Alecta collective funding ratio was 175% (167% in 2025). The plan expense was $26,726,000 in 2026 ($26,589,000 in 2025).
OTHER BENEFIT PLANS
As at September 30, 2026, the deferred compensation liability totaled $145,083,000 ($139,317,000 as at September 30, 2025) (Note 15) and the deferred compensation assets totaled $131,129,000 ($125,388,000 as at September 30, 2025) (Note 11). The deferred compensation liability is mainly related to plans covering some of its U.S. management. Some of the plans include assets that will be used to fund the liabilities.
For the deferred compensation plan in the U.S., a trust was established so that the plan assets could be segregated; however, the assets are subject to the Company’s general creditors in the case of bankruptcy. The assets composed of investments vary with employees’ contributions and changes in the value of the investments. The change in liabilities associated with the plan is equal to the change of the assets. The assets in the trust and the associated liabilities totaled $131,129,000 as at September 30, 2026 ($125,388,000 as at September 30, 2025).
CGI Inc. – Consolidated Financial Statements for the years ended September 30, 2026 and 2025    41

Notes to the Consolidated Financial Statements
For the years ended September 30, 2026 and 2025
(tabular amounts only are in thousands of Canadian dollars, except per share data)
18.    Accumulated other comprehensive income
As at
September 30, 2026		As at
September 30, 2025
$$
Items that will be reclassified subsequently to net earnings:
Net unrealized gains on translating financial statements of foreign operations, net of accumulated income tax expense of $56,413 ($59,141 as at September 30, 2025)
1,627,322 1,588,980 
Net losses on cross-currency swaps and on translating long-term debt designated as hedges of net investments in foreign operations, net of accumulated income tax recovery of $47,183 ($46,173 as at September 30, 2025)
(532,398)(542,309)
Net unrealized losses on cash flow hedges, net of accumulated income tax recovery of $18,152 ($10,042 as at September 30, 2025)
(57,867)(34,359)
Deferred gains of hedging on derivatives, net of accumulated income tax recovery of $1,856 ($2,538 as at September 30, 2025)
4,246 17,130 
Net unrealized (loss) gains on financial assets at fair value through other comprehensive income, net of accumulated income tax recovery of $608 (net of accumulated income tax expense of $1,361 as at September 30, 2025)
(1,758)4,328 
Items that will not be reclassified subsequently to net earnings:
Net remeasurement losses on defined benefit plans, net of accumulated income tax recovery of $625 ($11,755 as at September 30, 2025)
(527)(31,426)
1,039,018 1,002,344 
For the year ended September 30, 2026, $17,695,000 of the net unrealized losses on cash flow hedges, net of income tax recovery of $5,556,000, previously recognized in other comprehensive income were reclassified in the consolidated statements of earnings ($4,594,000 of the net unrealized gains on cash flow hedges, net of income tax expense of $1,627,000, were reclassified for the year ended September 30, 2025).
For the year ended September 30, 2026, $11,650,000 of the deferred gains of hedging on cross-currency swaps, net of income tax expense of $1,780,000, were also reclassified in the consolidated statements of earnings ($12,169,000, net of income tax expense of $1,859,000, were reclassified for the year ended September 30, 2025).

19.Capital stock
The Company's authorized share capital is comprised of an unlimited number, all without par value, of:
–First preferred shares, issuable in series, carrying one vote per share, each series ranking equal with other series, but prior to second preferred shares, Class A subordinate voting shares and Class B shares (multiple voting) with respect to the payment of dividends;
–Second preferred shares, issuable in series, non-voting, each series ranking equal with other series, but prior to Class A subordinate voting shares and Class B shares (multiple voting) with respect to the payment of dividends;
–Class A subordinate voting shares, carrying one vote per share, participating equally with Class B shares (multiple voting) with respect to the payment of dividends and convertible into Class B shares (multiple voting) under certain conditions in the event of certain takeover bids on Class B shares (multiple voting); and
–Class B shares (multiple voting), carrying ten votes per share, participating equally with Class A subordinate voting shares with respect to the payment of dividends and convertible at any time at the option of the holder into Class A subordinate voting shares.
CGI Inc. – Consolidated Financial Statements for the years ended September 30, 2026 and 2025    42

Notes to the Consolidated Financial Statements
For the years ended September 30, 2026 and 2025
(tabular amounts only are in thousands of Canadian dollars, except per share data)
19.    Capital stock (continued)
For the fiscal years 2026 and 2025, the number of issued and outstanding Class A subordinate voting shares and Class B shares (multiple voting) varied as follows:
Class A subordinate voting sharesClass B shares (multiple voting)Total
   NumberCarrying valueNumberCarrying valueNumberCarrying value
$$$
As at September 30, 2024203,774,163 1,436,680 24,122,758 33,653 227,896,921 1,470,333 
Release of Class A subordinate voting shares held in trusts— 46,050 — — — 46,050 
Purchased and held in trusts— (13,323)— — — (13,323)
Issued upon exercise of stock options947,071 74,319 — — 947,071 74,319 
Purchased and cancelled(8,781,243)(77,462)— — (8,781,243)(77,462)
As at September 30, 2025195,939,991 1,466,264 24,122,758 33,653 220,062,749 1,499,917 
Release of Class A subordinate voting shares held in trusts— 41,323 — — — 41,323 
Purchased and held in trusts— (75,030)— — — (75,030)
Issued upon exercise of stock options852,624 68,392 — — 852,624 68,392 
Purchased and cancelled(14,244,927)(126,728)— — (14,244,927)(126,728)
As at September 30, 2026182,547,688 1,374,221 24,122,758 33,653 206,670,446 1,407,874 
a)Performance share units and shares held in trusts
During the year ended September 30, 2026, 405,062 shares held in trust were released (438,458 during the year ended September 30, 2025) with a recorded value of $41,323,000 ($46,050,000 during the year ended September 30, 2025) that was removed from contributed surplus.
During the year ended September 30, 2026, the Company settled the withholding tax obligations on behalf of the employees under the Share Unit Plan for a cash payment of $23,717,000 ($52,888,000 during the year ended September 30, 2025).
During the year ended September 30, 2026, the trustees, in accordance with the terms of the Share Unit Plan and Trust Agreements, purchased 775,415 Class A subordinate voting shares of the Company on the open market (84,456 during the year ended September 30, 2025) for a total cash consideration of $75,030,000 ($13,323,000 during the year ended September 30, 2025).
As at September 30, 2026, 2,617,707 Class A subordinate voting shares were held in trusts under the Share Unit Plan (2,247,354 as at September 30, 2025).
b)Exercises of stock options
The carrying value of Class A subordinate voting shares includes $11,590,000 which corresponds to a reduction in contributed surplus representing the value of accumulated compensation costs associated with the stock options exercised during the year ended September 30, 2026 ($12,330,000 during the year ended September 30, 2025).









CGI Inc. – Consolidated Financial Statements for the years ended September 30, 2026 and 2025    43

Notes to the Consolidated Financial Statements
For the years ended September 30, 2026 and 2025
(tabular amounts only are in thousands of Canadian dollars, except per share data)
19.    Capital stock (continued)
c)Shares purchased and cancelled
On January 27, 2026, the Company’s Board of Directors authorized and subsequently received regulatory approval from the TSX for the renewal of its Normal Course Issuer Bid (NCIB) which allows for the purchase for cancellation of up to 18,975,360 Class A subordinate voting shares on the open market through the TSX, the New York Stock Exchange (NYSE) and/or alternative trading systems or otherwise pursuant to exemption orders issued by securities regulators. The Class A subordinate voting shares could be purchased for cancellation commencing on February 6, 2026, until no later than February 5, 2027, or on such earlier date when the Company has either acquired the maximum number of Class A subordinate voting shares allowable under the NCIB or elects to terminate the bid.
During the year ended September 30, 2026, the Company purchased for cancellation 14,164,627 Class A subordinate voting shares (8,861,543 during the year ended September 30, 2025) under its previous and current NCIB for a total cash consideration of $1,533,417,000 ($1,258,466,000 during the year ended September 30, 2025) and the excess of the purchase price over the carrying value in the amount of $1,406,689,000 ($1,181,004,000 during the year ended September 30, 2025) was charged to retained earnings.
During the year ended September 30, 2026, the Company paid for and cancelled 80,300 Class A subordinate voting shares under its previous NCIB, with a carrying value of $708,000 and for a total cash consideration of $9,935,000, which were purchased but were neither paid nor cancelled as at September 30, 2025.
During the year ended September 30, 2026, the Company recorded $29,066,000 related to a 2.0% tax on the value of Class A subordinate voting shares repurchased, net of the value of new equity issued through stock options exercised, as part of accrued liabilities and with a corresponding reduction in retained earnings ($22,218,000 during the year ended
September 30, 2025). In addition, during the year ended September 30, 2026, the Company paid $9,784,000 in relation to such tax ($25,999,000 during the year ended September 30, 2025).
d)Dividends
During the year ended September 30, 2026, the Company declared and paid the following quarterly cash dividends to holders of Class A subordinate voting shares and Class B shares (multiple voting):
20262025
Dividend Payment MonthDividend per ShareValueDividend per ShareValue
$$$$
December0.17 37,000 0.15 34,133 
March 0.17 36,239 0.15 34,057 
June0.17 35,710 0.15 33,580 
September0.17 35,116 0.15 33,282 
144,065 135,052 
On November 10, 2026, the Company’s Board of Directors approved a quarterly cash dividend for holders of Class A subordinate voting shares and Class B shares (multiple voting) of $0.185 per share. This dividend is payable on December 18, 2026 to shareholders of record as of the close of business on November 27, 2026.









CGI Inc. – Consolidated Financial Statements for the years ended September 30, 2026 and 2025    44

Notes to the Consolidated Financial Statements
For the years ended September 30, 2026 and 2025
(tabular amounts only are in thousands of Canadian dollars, except per share data)
20.Share-based payments
a)Performance share units and restricted share units
The Company operates a Share Unit Plan under which the Board of Directors may grant:
–PSUs to certain employees and officers which entitle them to receive one Class A subordinate voting share for each PSU. The vesting performance conditions are determined by the Board of Directors at the time of each grant. PSUs expire on the business day preceding December 31 of the third calendar year following the end of the fiscal year during which the PSU award was made, except in the event of retirement, termination of employment or death. Conditionally upon achievement of performance objectives, granted PSUs under the Share Unit Plan vest at the end of the four-year period.
–RSUs to certain employees and officers which entitle them to receive one Class A subordinate voting share for each RSU. RSUs do not have any vesting performance conditions. RSUs expire on the business day preceding December 31 of the third calendar year following the end of the fiscal year during which the RSU award was made, except in the event of retirement, termination of employment or death. Granted RSUs under the Share Unit Plan vest at the end of the four-year period.
Class A subordinate voting shares purchased in connection with the Share Unit Plan are held in trusts for the benefit of the participants. The trusts, considered as structured entities, are consolidated in the Company’s consolidated financial statements with the cost of the purchased shares recorded as a reduction of capital stock (Note 19).
There are currently no outstanding RSUs under the Share Unit Plan. The following table presents information concerning the number of outstanding PSUs granted by the Company under the Share Unit Plan:
 Outstanding as at September 30, 20242,528,200 
 Granted1
674,259 
 Exercised (Note 19)
(765,318)
 Forfeited(418,173)
 Dividends8,588 
 Outstanding as at September 30, 2025
2,027,556 
 Granted1
1,394,049 
 Exercised (Note 19)
(608,477)
 Forfeited(309,465)
 Dividends15,467 
 Outstanding as at September 30, 2026
2,519,130 
1    The PSUs granted in 2026 had a weighted average grant date fair value of $116.22 per unit ($159.44 in 2025).
b)Stock options
Under the Company’s stock option plan, the Board of Directors may grant, at its discretion, stock options to purchase Class A subordinate voting shares to certain employees, officers and directors of the Company and its subsidiaries. The exercise price is established by the Board of Directors and is equal to the closing price of the Class A subordinate voting shares on the TSX on the day preceding the date of the grant. Stock options generally vest over four years from the date of grant conditionally upon achievement of performance objectives and must be exercised within a ten-year period, except in the event of retirement, termination of employment or death. As at September 30, 2026, 15,395,104 Class A subordinate voting shares were reserved for issuance under the stock option plan.







CGI Inc. – Consolidated Financial Statements for the years ended September 30, 2026 and 2025    45

Notes to the Consolidated Financial Statements
For the years ended September 30, 2026 and 2025
(tabular amounts only are in thousands of Canadian dollars, except per share data)
20.Share-based payments (continued)
b)    Stock options (continued)
The following table presents information concerning the outstanding stock options granted by the Company:
20262025
Number of optionsWeighted
average exercise
price per share		Number of optionsWeighted
average exercise price per share
$$
 Outstanding, beginning of year2,912,473 77.48 3,862,527 74.53 
 Exercised (Note 19)
(852,624)66.62 (947,071)65.45 
 Expired(24,037)99.29 (2,983)84.91 
 Outstanding, end of year2,035,812 81.77 2,912,473 77.48 
 Exercisable, end of year2,035,812 81.77 2,912,473 77.48 
The weighted average share price at the date of exercise for stock options exercised in 2026 was $107.07 ($155.80 in 2025).
The following table summarizes information about the outstanding stock options granted by the Company as at September 30, 2026:
Options outstanding and exercisable
Range of
exercise price		Number of optionsWeighted
average
remaining contractual life 		Weighted
average exercise price
$(in years)$
62.31 to 68.13
737,378 0.9063.43 
 70.53 to 85.62
747,587 1.9885.48 
97.84 to 100.16
402,049 4.1997.84 
102.79 to 110.73
148,798 3.17110.56 
2,035,812 2.1181.77
c)Share purchase plan
Under the share purchase plan, the Company contributes an amount equal to a percentage of the employee's basic contribution, up to a maximum of 3.50%. An employee may make additional contributions in excess of the basic contribution. However, the Company does not match contributions in the case of such additional contributions. The employee and Company's contributions are remitted to an independent plan administrator who purchases Class A subordinate voting shares on the open market on behalf of the employee through either the TSX or NYSE.
d)Deferred share unit plan
External members of the Board of Directors (participants) are entitled to receive part or their entire retainer fee in DSUs. DSUs are granted with immediate vesting and must be exercised no later than December 15 of the calendar year immediately following the calendar year during which the participant ceases to act as a director. Each DSU entitles the holder to receive a cash payment equal to the closing price of Class A subordinate voting shares on the TSX on the payment date. As at September 30, 2026, the number of outstanding DSUs was 119,258 (99,938 DSUs as at September 30, 2025).







CGI Inc. – Consolidated Financial Statements for the years ended September 30, 2026 and 2025    46

Notes to the Consolidated Financial Statements
For the years ended September 30, 2026 and 2025
(tabular amounts only are in thousands of Canadian dollars, except per share data)
20.Share-based payments (continued)
e)Share-based payment costs
The share-based payment expense recorded in costs of services, selling and administrative is as follows:
Year ended September 30
20262025
$$
 PSUs63,447 68,636 
 Share purchase plan201,806 196,510 
 DSUs (850)(743)
264,403 264,403
21.Earnings per share
The following table sets forth the computation of basic and diluted earnings per share for the years ended September 30:
20262025
Net earnings
Weighted average number of shares outstanding1
Earnings per shareNet earnings
Weighted average
number of shares outstanding1
Earnings per share
$$$$
Basic
1,812,648 209,950,232 8.63 1,658,285 222,693,319 7.45 
Net effect of dilutive stock
options and PSUs2
1,373,213 2,796,025 
Diluted1,812,648 211,323,445 8.58 1,658,285 225,489,344 7.35 
1    During the year ended September 30, 2026, 14,164,627 Class A subordinate voting shares purchased for cancellation and 2,617,707 Class A subordinate voting shares held in trust were excluded from the calculation of the weighted average number of shares outstanding as of the date of transaction (8,861,543 and 2,247,354, respectively during the year ended September 30, 2025).
2    The calculation of the diluted earnings per share excluded 145,645 stock options for the year ended September 30, 2026 (nil for the year ended 
September 30, 2025), as they were anti-dilutive.
22.     Remaining performance obligations
Remaining performance obligations relates to Company’s performance obligations that are partially or fully unsatisfied under fixed-fee arrangements recognized using the percentage-of-completion method.
The amount of the selling price allocated to remaining performance obligations as at September 30, 2026 is $1,255,892,000 ($1,195,219,000 as at September 30, 2025) and is expected to be recognized as revenue within a weighted average of 1.6 years (2.0 years as at September 30, 2025).
23.Costs of services, selling and administrative
Year ended September 30
20262025
$$
Salaries, other employee costs and contracted labour costs1
11,632,210 11,184,452 
Hardware, software and data center related costs1,025,383 957,218 
Professional fees
277,871 268,322 
Property costs236,488 220,845 
Amortization, depreciation and impairment (Note 24)
601,980 585,665 
Other operating expenses92,984 84,543 
13,866,916 13,301,045 
1    Net of R&D and other tax credits of $174,830,000 in 2026 ($173,042,000 in 2025).
CGI Inc. – Consolidated Financial Statements for the years ended September 30, 2026 and 2025    47

Notes to the Consolidated Financial Statements
For the years ended September 30, 2026 and 2025
(tabular amounts only are in thousands of Canadian dollars, except per share data)
24.Amortization, depreciation and impairment
Year ended September 30
20262025
$$
 Depreciation of PP&E (Note 6)
133,781 134,243 
 Impairment of PP&E (Note 6)
57 — 
 Depreciation of right-of-use assets (Note 7)
154,133 138,240 
 Impairment of right-of-use assets (Note 7)
1,677 768 
 Amortization of contract costs related to transition costs78,320 74,059 
 Amortization of intangible assets (Note 9)
230,507 231,639 
 Impairment of intangible assets (Note 9)
3,505 6,716 
 Included in costs of services, selling and administrative (Note 23)
601,980 585,665 
Amortization of contract costs related to incentives (presented as a reduction of revenue)2,849 4,170 
 Amortization of deferred financing fees (presented in finance costs)744 575 
Amortization of premiums (discounts) on investments related to funds held for clients
(presented net as a reduction (increase) of revenue)
1,268 (39)
Impairment of PP&E (presented in integration costs) (Note 6)
5,298 360 
Impairment of PP&E (presented in restructuring)
(Note 6 and 25)
— 1,526 
 Impairment of right-of-use assets (presented in integration costs) (Note 7)
10,834 19,125 
Impairment of right-of-use assets (presented in restructuring) (Note 7 and 25)
— 2,656 
Impairment of intangible assets (presented in restructuring) (Note 9 and 25)
— 228 
622,973 614,266 
25.    Restructuring, acquisition and related integration costs
Year ended September 30
20262025
$$
Restructuring— 196,796 
Acquisition and related integration costs104,028 88,235 
104,028 285,031 
During the year ended September 30, 2026, acquisition and related integration costs were related to redundancy of employment of $55,984,000 ($27,467,000 during the year ended September 30, 2025), accounted for in severance provisions (Note 14), integration costs toward the CGI operating model of $23,224,000 ($25,111,000 during the year ended September 30, 2025), costs of vacating leased premises of $19,197,000 ($23,379,000 during the year ended September 30, 2025) as well as legal and professional fees of $5,623,000 ($12,278,000 during the year ended September 30, 2025).
During the year ended September 30, 2025, the Company initiated and completed a restructuring program which was targeted within its Continental European operations to realign its cost structure with current market conditions, and which was completed for a total cost of $196,796,000, consisting of costs for terminations of employment of $190,008,000 under this initiative, accounted for in severance provisions (Note 14), as well as costs of vacating leased premises of $6,788,000.
CGI Inc. – Consolidated Financial Statements for the years ended September 30, 2026 and 2025    48

Notes to the Consolidated Financial Statements
For the years ended September 30, 2026 and 2025
(tabular amounts only are in thousands of Canadian dollars, except per share data)
26.    Net finance costs
Year ended September 30
20262025
$$
 Interest on long-term debt97,583 80,907 
 Interest on lease liabilities31,423 30,461 
 Net interest costs on net defined benefit pension plans (Note 17)
6,881 7,653 
 Other finance costs5,102 9,556 
 Finance costs140,989 128,577 
 Finance income(18,287)(44,885)
122,702 83,692 
27.    Investments in subsidiaries
a)    Acquisitions and disposals
The Company made the following acquisitions during the year ended September 30, 2026:
–On December 2, 2025, the Company acquired all of the issued and outstanding shares of Online Enterprises Inc, operating as Online Business Systems (OBS), an IT consulting firm, based in Canada with operations in the U.S. More than 350 professionals joined CGI from OBS. The acquisition is reported under the Canada and U.S. Commercial and State Government operating segments.
–On December 22, 2025, the Company acquired all of the issued and outstanding shares of Comarch Polska SA (Comarch Polska), a subsidiary of Comarch SA, specializing in IT solutions, based in Poland. More than 460 IT and business consulting professionals joined CGI from Comarch Polska. The acquisition is reported under the Finland, Poland and Baltics operating segment.
–On April 2, 2026, the Company acquired all of the issued and outstanding units of Stratfield, LLC (Stratfield), a management and technology consulting firm, based in Atlanta, U.S. Nearly 200 consultants joined CGI from Stratfield. The acquisition is reported under the U.S. Commercial and State Government operating segment.
–On September 1, 2026, the Company acquired certain operations from Telia Finland Oyj and Telia Cygate Oy (Telia), based in Finland, where cloud and capacity services for enterprises and IT end-user services were transferred to CGI. Nearly 250 professionals joined CGI from Telia. The acquisition is reported in the Finland, Poland and Baltics operating segment.
–On September 8, 2026, the Company acquired all of the issued and outstanding units of Callibrity Solutions, LLC (Callibrity), an end-to-end technology consulting firm, based in Cincinnati, U.S. Nearly 120 consultants joined CGI from Callibrity. The acquisition is reported under the U.S. Commercial and State Government operating segment.
These acquisitions were made to further expand CGI’s footprint in their respective regions and to complement CGI's proximity model.
The total purchase prices for the above acquisitions of $221,342,000 (less cash acquired of $7,315,000), are mainly allocated to goodwill for $136,250,000, which is only deductible for tax purposes for Stratfield and Callibrity for $53,428,000, and mostly represents the future economic value associated with acquired work force and synergies with the Company’s operations.
The unpaid portion of the purchase prices amounted to $28,642,000 as of September 30, 2026.
The estimated fair value of all assets acquired and liabilities assumed for these acquisitions is preliminary and will be completed as soon as management has gathered all the significant information available and considered necessary in order to finalize this allocation.
There were no material disposals for the year ended September 30, 2026.

CGI Inc. – Consolidated Financial Statements for the years ended September 30, 2026 and 2025    49

Notes to the Consolidated Financial Statements
For the years ended September 30, 2026 and 2025
(tabular amounts only are in thousands of Canadian dollars, except per share data)
27.    Investments in subsidiaries (continued)
b)    Business acquisitions realized in the prior fiscal year
The following table presents the fair value of assets acquired and liabilities assumed for all acquisitions based on the acquisition-date fair values of the identifiable tangible and intangible assets acquired and liabilities assumed as at September 30, 2025:
DaughertyBJSSApsideOtherTotal
$$$$$
Accounts receivable53,546 112,422 55,390 20,249 241,607 
Work in progress14,303 6,508 12,886 468 34,165 
Prepaid expenses and other current assets4,142 5,383 2,534 1,145 13,204 
PP&E (Note 6)
378 5,349 7,573 2,095 15,395 
Right-of-use assets (Note 7)
15,538 18,395 21,742 10,821 66,496 
Intangible assets1 (Note 9)
54,948 106,105 62,399 23,338 246,790 
Other long-term assets3,124 — 3,450 — 6,574 
Goodwill2 (Note 12)
237,886 1,143,403 221,445 70,526 1,673,260 
Accounts payable and accrued liabilities(18,465)(67,216)(45,785)(6,844)(138,310)
Other current liabilities(31,853)(69,471)(17,931)(10,974)(130,229)
Deferred tax liabilities— (26,514)(11,489)(7,389)(45,392)
Long-term debt (Note 28c)
— — (56,204)(2,172)(58,376)
Lease liabilities(15,538)(20,373)(21,742)(12,118)(69,771)
Other long-term liabilities— (2,578)(12,636)(411)(15,625)
318,009 1,211,413 221,632 88,734 1,839,788 
Cash acquired25,015 44,164 8,258 14,027 91,464 
Net assets acquired343,024 1,255,577 229,890 102,761 1,931,252 
Consideration paid335,936 1,246,821 229,530 97,632 1,909,919 
Consideration payable7,088 8,756 360 5,129 21,333 
1    Intangible assets are mainly composed of client relationships and backlog.
2    The goodwill arising from the acquisitions mainly represents the future economic value associated to acquired work force and synergies with the Company’s operations. The goodwill is only deductible for tax purposes for Daugherty.
During the year ended September 30, 2026, the Company finalized the fair value assessment of assets acquired and liabilities assumed for Daugherty Systems, Inc. with no adjustment and for BJSS Ltd., Novatec Holding GmbH and Momentum Technologies Inc., with no significant adjustments, other than the allocation of goodwill between CGUs.
Furthermore, during the year ended September 30, 2026, the Company finalized the fair value assessment of assets acquired and liabilities assumed for Apside-Advance SAS with an increase of goodwill of $19,757,000 (Note 12) mainly coming from a decrease in intangible assets and without significant impact on net earnings.
During the year ended September 30, 2026, the Company paid $12,812,000, related to acquisitions realized in prior fiscal years.
CGI Inc. – Consolidated Financial Statements for the years ended September 30, 2026 and 2025    50

Notes to the Consolidated Financial Statements
For the years ended September 30, 2026 and 2025
(tabular amounts only are in thousands of Canadian dollars, except per share data)
28.    Supplementary cash flow information
a)        Net change in non-cash working capital items and others is as follows for the years ended September 30:
20262025
$
$
 Accounts receivable83,122 80,109 
 Work in progress(80,652)(63,386)
 Prepaid expenses and other assets(9,275)49,158 
 Long-term financial assets(2,970)(9,329)
 Accounts payable and accrued liabilities32,395 (167,764)
 Accrued compensation and employee-related liabilities(78,777)(59,885)
 Deferred revenue8,403 (1,932)
 Income taxes(24,010)(85,430)
 Provisions(72,197)122,426 
 Long-term liabilities16,582 7,739 
 Derivative financial instruments69 118 
 Retirement benefits obligations13,727 9,133 
(113,583)(119,043)
b)        Non-cash operating and investing activities are as follows for the years ended September 30:
   20262025
$$
 Operating activities
Accounts payable and accrued liabilities
41,374 45,269 
Provisions
3,263 1,219 
  Other long-term liabilities
10,342 19,401 
54,979 65,889 
 Investing activities
Purchase of PP&E
(13,287)(12,021)
Additions, disposals/retirements, change in estimates and lease modifications of right-of-use assets(124,393)(143,914)
Additions to intangible assets
(46,933)(59,927)
(184,613)(215,862)













CGI Inc. – Consolidated Financial Statements for the years ended September 30, 2026 and 2025    51

Notes to the Consolidated Financial Statements
For the years ended September 30, 2026 and 2025
(tabular amounts only are in thousands of Canadian dollars, except per share data)
28.    Supplementary cash flow information (continued)
c)    Changes arising from financing activities are as follows for the years ended September 30:
20262025
Long-term debtDerivative financial instruments to hedge long-term debtLease liabilitiesLong-term debtDerivative financial instruments to hedge long-term debtLease liabilities
$$$$$$
Balance, beginning of year3,637,835 137,785 693,484 2,688,308 9,500 620,095 
Cash used in financing activities excluding equity
Increase of long-term debt498,553 — — 923,922 — — 
Repayment of long-term debt and lease liabilities (834,913)— (179,878)— — (177,465)
Repayment of debt assumed in business acquisitions(13,899)— — (47,953)— — 
Settlement of derivative financial instruments (Note 32)
— 78 — — — — 
Non-cash financing activities
Additions, disposals/retirements and change in estimates
and lease modifications of right-of-use assets
— — 122,614 — — 144,967 
Business acquisitions3,281 — (1,218)58,376 — 69,771 
Changes in foreign currency exchange rates28,260 (21,264)(3,513)13,623 128,285 32,319 
Other5,241 — — 1,559 — 3,797 
Balance, end of year3,324,358 116,599 631,489 3,637,835 137,785 693,484 
d)    Interest paid and received and income taxes paid are classified within operating activities and are as follows for the years ended September 30:
20262025
$$
 Interest paid152,121 129,133 
 Interest received44,538 62,604 
 Income taxes paid534,769 603,370 
e)    Cash and cash equivalents consisted of unrestricted cash as at September 30, 2026 and 2025.
CGI Inc. – Consolidated Financial Statements for the years ended September 30, 2026 and 2025    52

Notes to the Consolidated Financial Statements
For the years ended September 30, 2026 and 2025
(tabular amounts only are in thousands of Canadian dollars, except per share data)
29.    Segmented information
The Company has restated its segmented information for the comparative period to conform to the new operating segments and the segment expense disclosures (Note 12). The following tables present information on the Company's operations based on its current management structure. Segment results are based on the location from which the services are delivered - the geographic delivery model.
Year ended September 30, 2026
Western and Southern EuropeU.S. Commercial and State GovernmentU.K. and
Australia		U.S. FederalCanadaScandinavia, Northwest and Central-East EuropeFinland,
Poland
and Baltics		GermanyAsia
Pacific		EliminationsTotal
$$$$$$$$$$$
Segment revenue2,967,112 2,474,293 2,292,183 2,162,067 2,083,579 1,820,440 982,246 903,200 1,027,215 (138,726)16,573,609 
Segment earnings before
   restructuring, acquisition and
   related integration costs, net
   finance costs and income
   tax expense
389,841 366,444 362,446 296,266 495,255 251,030 158,197 85,770 301,186 — 2,706,435 
Restructuring, acquisition and related integration costs
(Note 25)
(104,028)
Net finance costs (Note 26)(122,702)
Earnings before income
   taxes
2,479,705 
Additional information:
Salaries, other employee
costs and contracted labour costs
2,332,722 1,752,184 1,546,239 1,577,587 1,260,225 1,223,031 617,130 704,738 618,354 — 11,632,210 
Amortization and depreciation1
87,490 108,929 71,824 62,720 66,253 88,655 44,173 40,066 35,987 — 606,097 
1    Amortization and depreciation includes an impairment in the Canada segment of $2,716,000 related to a business solution.
Year ended September 30, 2025
Western and Southern EuropeU.S. Commercial and State GovernmentU.K. and AustraliaU.S. FederalCanadaScandinavia, Northwest and Central-East EuropeFinland,
Poland
and Baltics		GermanyAsia PacificEliminationsTotal
$$$$$$$$$$$
Segment revenue2,649,599 2,522,956 2,020,016 2,247,943 2,090,682 1,718,455 903,701 901,609 1,014,441 (156,729)15,912,673 
Segment earnings before
   restructuring, acquisition and
   related integration costs, net
   finance costs and income
   tax expense
350,181 359,174 299,345 331,976 472,888 239,442 142,128 108,107 307,672 — 2,610,913 
Restructuring, acquisition and
   related integration costs
(Note 25)
(285,031)
Net finance costs (Note 26)(83,692)
Earnings before income
   taxes
2,242,190 
Additional information:
Salaries, other employee
costs and contracted labour
costs
2,061,376 1,820,400 1,359,727 1,651,615 1,264,788 1,147,378 571,621 693,328 614,219 — 11,184,452 
Amortization and depreciation2
75,814 102,678 60,636 76,486 68,741 87,209 40,408 41,608 36,216 — 589,796 
2    Amortization and depreciation includes an impairment in the U.S. Commercial and State Government segment of $5,546,000 related to a business solution.
The accounting policies of each operating segment are the same as those described in Note 3, Summary of material accounting policies. Intersegment revenue is priced as if the revenue was from third parties.
CGI Inc. – Consolidated Financial Statements for the years ended September 30, 2026 and 2025    53

Notes to the Consolidated Financial Statements
For the years ended September 30, 2026 and 2025
(tabular amounts only are in thousands of Canadian dollars, except per share data)
29.    Segmented information (continued)
GEOGRAPHIC INFORMATION
The following table provides external revenue information based on the client’s location which is different from the revenue presented under operating segments, due to the intersegment revenue, for the years ended September 30:
20262025
$
$
Western and Southern Europe
France
2,576,087 2,293,714 
Portugal
136,739 131,043 
Spain
134,310 130,478 
Others
51,30535,244 
2,898,441 2,590,479 
U.S.1
4,932,348 5,063,038 
U.K. and Australia
U.K.2,401,981 2,144,523 
Australia80,762 81,409 
2,482,743 2,225,932 
Canada2,322,827 2,302,236 
Scandinavia, Northwest and Central-East Europe
Sweden778,269 713,513 
Netherlands706,951 678,664 
Norway114,160 111,134 
Denmark97,375 96,256 
Czech Republic86,917 81,715 
Others110,059 101,408 
1,893,731 1,782,690
Finland, Poland and Baltics
Finland
891,524 883,148 
Poland116,842 52,228 
Others
31,350 27,469 
1,039,716 962,845 
Germany1,000,161 980,807
Asia Pacific


Others
3,642 4,646 
3,642 4,646 
16,573,609 15,912,673 
1    External revenue included in the U.S Commercial and State Government and U.S. Federal operating segments was $2,769,663,000 and $2,162,685,000, respectively in 2026 ($2,809,549,000 and $2,253,489,000, respectively in 2025).








CGI Inc. – Consolidated Financial Statements for the years ended September 30, 2026 and 2025    54

Notes to the Consolidated Financial Statements
For the years ended September 30, 2026 and 2025
(tabular amounts only are in thousands of Canadian dollars, except per share data)
29.    Segmented information (continued)
GEOGRAPHIC INFORMATION (CONTINUED)
The following table provides information for PP&E, right-of-use assets, contract costs and intangible assets based on their location:
As at
September 30, 2026		As at
September 30, 2025
$
$
U.S.
703,345 676,717 
Canada
432,529 441,218 
U.K.208,732 223,676 
France186,635 276,053 
Finland
129,525 104,354 
Sweden
96,677 112,744 
Germany
85,861 107,623 
 India75,276 77,772 
Netherlands
45,481 54,462 
Rest of the world
115,368 104,206 
2,079,429 2,178,825 
INFORMATION ABOUT SERVICES
The following table provides revenue information based on services provided by the Company for the year ended September 30:    
20262025
$
$
Managed IT and business process services9,083,331 8,820,863 
Business and strategic IT consulting and systems integration services7,490,278 7,091,810 
16,573,609 15,912,673 
MAJOR CLIENT INFORMATION
Contracts with the U.S. federal government and its various agencies, included within the U.S. Federal operating segment, accounted for $2,157,942,000 and 13.0% of revenues for the year ended September 30, 2026 ($2,244,649,000 and 14.1% for the year ended September 30, 2025).
CGI Inc. – Consolidated Financial Statements for the years ended September 30, 2026 and 2025    55

Notes to the Consolidated Financial Statements
For the years ended September 30, 2026 and 2025
(tabular amounts only are in thousands of Canadian dollars, except per share data)
30.    Related party transactions
The Company is controlled by the Founder of CGI and Co-Chair of the Board of Directors.
a)Transactions with subsidiaries and other related parties
Balances and transactions between the Company and its subsidiaries have been eliminated on consolidation. The Company owns 100% of the equity interests of its principal subsidiaries.
The Company’s principal subsidiaries whose revenues, based on the geographic delivery model, represent more than 3% of the consolidated revenues are as follows:
Name of subsidiary
Country of incorporation
CGI Technologies and Solutions Inc.United States
CGI IT UK LimitedUnited Kingdom
CGI France SASFrance
CGI Federal Inc.United States
CGI Information Systems and Management Consultants Inc.Canada
CGI Deutschland B.V. & Co. KGGermany
Conseillers en gestion et informatique CGI inc.Canada
CGI Sverige ABSweden
CGI Information Systems and Management Consultants Private LimitedIndia
CGI Suomi OyFinland
CGI Nederland B.V.Netherlands
During the years ended September 30, 2026 and 2025, the Company had no significant transactions with other related parties, other than compensation of key management personnel.
b)Compensation of key management personnel
Compensation of key management personnel, currently defined as the executive officers and the Board of Directors of the Company, was as follows for the year ended September 30:
20262025
$
$
Short-term employee benefits43,450 30,043 
Share-based payments35,546 37,002 
31.    Commitments, contingencies and guarantees
a)Commitments
As at September 30, 2026, the Company entered into long-term service agreements representing a total commitment of $523,420,000. Minimum payments under these agreements are due as follows:
$
 Less than one year291,945 
 Between one and three years206,340 
 Between three and five years24,122 
 Beyond five years1,013 


CGI Inc. – Consolidated Financial Statements for the years ended September 30, 2026 and 2025    56

Notes to the Consolidated Financial Statements
For the years ended September 30, 2026 and 2025
(tabular amounts only are in thousands of Canadian dollars, except per share data)
31.    Commitments, contingencies and guarantees (continued)
b)Contingencies
Legal proceedings, audit, litigations and claims
From time to time, the Company is involved in legal proceedings, audits, litigation and claims which primarily relate to tax exposure, contractual disputes and employee claims arising in the ordinary course of its business. Certain of these matters seek damages in significant amounts and will ultimately be resolved when one or more future events occur or fail to occur. Although the outcome of such matters is not predictable with assurance, the Company has no reason to believe that the disposition of any such current matter could reasonably be expected to have a materially adverse impact on the Company’s financial position, results of operations or the ability to carry on any of its business activities. Claims for which there is a probable unfavourable outcome are recorded in provisions.
Class actions
On July 20, 2026, the Company and certain of its officers were served with an Application for Authorization to Institute a Class Action and for Authorization to Bring an Action for Damages pursuant to Section 225.4 of the Securities Act (Québec) before the Superior Court of Québec. The application is sought on behalf of all persons who purchased the Company’s securities between January 29, 2025 and April 28, 2026, inclusively, and who held all or part of such securities at any time between January 28, 2026 and April 29, 2026, and alleges, among other things, misrepresentations and omissions in public disclosures, including alleged failures to disclose material information. The application requires court authorization before proceeding and seeks unspecified damages.
Considering that the application is at an early stage and, although the Company believes the claims are without merit, it is not possible at this time for management to predict the outcome. The Company intends to vigorously defend against the claims asserted.
On September 2, 2026, a civil action was filed in the United States District Court for the Eastern District of Virginia against CGI Technologies and Solutions, Inc. (a subsidiary of the Company), its board of directors and the members thereof, and certain other defendants.
The complaint alleges, among other things, breaches of fiduciary duties under the Employee Retirement Income Security Act (ERISA) relating to CGI Technologies and Solutions, Inc.’s 401(k) savings plan (the “Plan”). The complaint is a derivative action on behalf of the Plan itself, which seeks to certify the action as a class action on behalf of participants and beneficiaries of the Plan. The complaint alleges that damages to the Plan are between U.S. $104,500,000 to U.S. $168,100,000 for the period from September 2020 to February 2026. The action has not been heard on the merits and has not been certified as a class action.
Considering that the action is at a very early stage and, although the Company believes the claims are without merit, it is not possible at this time for management to predict the outcome. The Company intends to vigorously defend against the claims asserted.
Government contracts
In addition, the Company is engaged to provide services under contracts with various government agencies. Some of these contracts are subject to extensive legal and regulatory requirements and, from time to time, government agencies investigate whether the Company’s operations are being conducted in accordance with these requirements. Generally, the governments agencies have the right to change the scope of, or terminate, these projects at its convenience. The termination or reduction in the scope of a major government contract or project could have a materially adverse effect on the results of operations and the financial condition of the Company.
CGI Inc. – Consolidated Financial Statements for the years ended September 30, 2026 and 2025    57

Notes to the Consolidated Financial Statements
For the years ended September 30, 2026 and 2025
(tabular amounts only are in thousands of Canadian dollars, except per share data)
31.    Commitments, contingencies and guarantees (continued)
c)     Guarantees
Sale of assets and business divestitures
In connection with the sale of assets and business divestitures, the Company may be required to pay counterparties for costs and losses incurred as the result of breaches in contractual obligations, including representations and warranties, intellectual property right infringement claims and litigation against counterparties, among others. While some of the agreements specify a maximum potential exposure, others do not specify a maximum amount or a maturity date or survival period. It is not possible to reasonably estimate the maximum amount that may have to be paid under such guarantees. The amounts are dependent upon the outcome of future contingent events, the nature and likelihood of which cannot be determined at this time. No amount has been accrued in the consolidated balance sheets relating to this type of guarantee or indemnification as at
September 30, 2026. The Company does not expect to incur any potential payment in connection with these guarantees that could have a material adverse effect on its consolidated financial statements.
Other transactions
In the normal course of business, the Company may provide certain clients, principally governmental entities, with bid and performance bonds. In general, the Company would only be liable for the amount of the bid bonds if the Company refuses to perform the project once the bid is awarded. The Company would also be liable for the performance bonds in the event of default in the performance of its obligations. As at September 30, 2026, the Company had $277,681,000 ($275,221,000 as at September 30, 2025) of outstanding bonds. In all material respects, the Company is in compliance with its contractual obligations under its service contracts for which there is a bid or performance bond, and the ultimate liability, if any, incurred in connection with these guarantees, would not have a materially adverse effect on the Company’s consolidated results of operations or financial condition.
Moreover, the Company has letters of credit for a total of $78,139,000 ($74,743,000 as at September 30, 2025) in addition to the letters of credit covered by the unsecured committed revolving credit facility (Note 13). These guarantees are required in some of the Company’s contracts with customers.
32.    Financial instruments
FAIR VALUE MEASUREMENTS
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
Valuation techniques used to value financial instruments are as follows:
-    The fair value of the 2021 U.S. Senior Notes, the 2021 CAD Senior Notes, the 2024 CAD Senior Notes, the 2025 U.S. Senior Notes, the 2026 CAD Senior Notes, the unsecured committed revolving credit facility and the other long-term debt is estimated by discounting expected cash flows at rates currently offered to the Company for debts of the same remaining maturities and conditions;
-    The fair value of long-term bonds included in funds held for clients and in long-term investments is determined by discounting the future cash flows using observable inputs, such as interest rate yield curves or credit spreads, or according to similar transactions on an arm's-length basis;
-    The fair value of foreign currency forward contracts is determined using forward exchange rates at the end of the reporting period;
-    The fair value of cross-currency swaps is determined based on market data (primarily yield curves, exchange rates and interest rates) to calculate the present value of all estimated cash flows;
-    The fair value of cash, cash equivalents and cash included in funds held for clients and short-term investments included in current financial assets is determined using observable quotes; and
-    The fair value of deferred compensation plan assets within long-term financial assets is based on observable price quotations and net asset values at the reporting date.
As at September 30, 2026, there were no changes in valuation techniques.
CGI Inc. – Consolidated Financial Statements for the years ended September 30, 2026 and 2025    58

Notes to the Consolidated Financial Statements
For the years ended September 30, 2026 and 2025
(tabular amounts only are in thousands of Canadian dollars, except per share data)
32.    Financial instruments (continued)
FAIR VALUE MEASUREMENTS (CONTINUED)
The following table presents the financial liabilities included in the long-term debt (Note 13) measured at amortized cost categorized using the fair value hierarchy.
As at September 30, 2026As at September 30, 2025
LevelCarrying amountFair valueCarrying amountFair value
      $$$$
2021 U.S. Senior NotesLevel 2564,445 486,172 1,386,564 1,310,044 
2021 CAD Senior NotesLevel 2598,587 579,289 597,892 580,561 
2024 CAD Senior NotesLevel 2748,001 751,437 747,001 766,844 
2025 U.S. Senior NotesLevel 2915,007 908,228 894,509 930,366 
2026 CAD Senior NotesLevel 2497,328 500,437 — — 
Other long-term debtLevel 2990 983 11,869 11,892 
3,324,358 3,226,546 3,637,835 3,599,707 
For the remaining financial assets and liabilities measured at amortized cost, the carrying values approximate the fair values of the financial instruments.
The following table presents financial assets and liabilities measured at fair value categorized using the fair value hierarchy:
LevelAs at September 30, 2026As at September 30, 2025
$$
 Financial assets
FVTE
Cash and cash equivalents Level 2493,857 864,209 
Cash included in funds held for clients (Note 5)
Level 2768,857 704,503 
Deferred compensation plan assets (Note 11)
Level 1131,129 125,388 

1,393,843 1,694,100 
Derivative financial instruments designated as
     hedging instruments
Current derivative financial instruments included in current financial assets Level 2
Cross-currency swaps30 1,011 
Foreign currency forward contracts630 1,481 
Long-term derivative financial instruments (Note 11)
Level 2
Cross-currency swaps866 395 
Foreign currency forward contracts1,203 459 

2,729 3,346 
FVOCI
Short-term investments included in current financial assetsLevel 27,869 3,675 
Long-term bonds included in funds held for clients (Note 5)
Level 2268,461 240,932 
Long-term investments (Note 11)
Level 226,355 27,687 
302,685 272,294 
 Financial liabilities
 Derivative financial instruments designated as
      hedging instruments
Current derivative financial instrumentsLevel 2
Cross-currency swaps21,187 3,036 
Foreign currency forward contracts38,757 21,586 
Long-term derivative financial instrumentsLevel 2
Cross-currency swaps96,308 136,155 
Foreign currency forward contracts51,262 36,950 
207,514 197,727 
There have been no transfers between Level 1 and Level 2 for the years ended September 30, 2026 and 2025.
CGI Inc. – Consolidated Financial Statements for the years ended September 30, 2026 and 2025    59

Notes to the Consolidated Financial Statements
For the years ended September 30, 2026 and 2025
(tabular amounts only are in thousands of Canadian dollars, except per share data)
32.    Financial instruments (continued)
MARKET RISK
Market risk incorporates a range of risks. Movements in risk factors, such as interest rate risk and currency risk, affect the fair values of financial assets and liabilities.
Interest rate risk
The Company is exposed to interest rate risk on its unsecured committed revolving credit facility carrying amount.
The Company analyzes its interest rate risk exposure on an ongoing basis using various scenarios to simulate refinancing or the renewal of existing positions. Based on these scenarios, a change in the interest rate of 1% would not have had a significant impact on net earnings as of September 30, 2026, as no amounts have been drawn on the unsecured committed revolving credit facility and all other outstanding debts bear fixed interest rates.
Currency risk
The Company operates internationally and is exposed to risk from changes in foreign currency exchange rates. The Company mitigates this risk principally through foreign currency denominated debt and derivative financial instruments, which includes foreign currency forward contracts and cross-currency swaps.
The Company hedges a portion of the translation of the Company’s net investments in its U.S. operations into Canadian dollar, with Senior U.S. unsecured notes.
The Company also hedges a portion of the translation of the Company’s net investments in its European operations with cross-currency swaps.
Finally, the Company enters into foreign currency forward contracts to hedge the variability in various foreign currency exchange rates on future revenues. Hedging relationships are designated and documented at inception and quarterly effectiveness assessments are performed during the year.
As of September 30, 2026, the 2021 U.S. Senior Notes of a carrying value of $564,445,000 and a nominal amount of $568,600,000 are partially designated as hedging instruments to hedge portions of the Company’s net investments in its U.S. operations.
The following tables summarize the cross-currency swap agreements that the Company had entered into in order to manage its currency:
As at
September 30, 2026		As at
September 30, 2025
Receive NotionalReceive RatePay NotionalPay rateMaturityFair valueFair value
$$
Hedges of net investments in European operations
$1,370,000From 1.62% to 4.48%€928,591From (0.14%) to 4.29% From September 2027 to June 2031(96,211)(109,168)
$290,000From 4.15% to 4.20%SEK2,081,118From 3.49% to 3.80%From September 2029 to December 2029(5,895)(9,090)
$40,0004.20%DKK186,034From 3.80% to 3.82%December 2029(152)— 
Hedges of net investments in European operations and cash flow hedges on the 2021 U.S. Senior Notes
U.S.$18,5002.30%SEK180,5881.01%September 2031136 (2,448)
U.S.$7,5002.30%DKK48,2680.85%September 2031139 (54)
Cash flow hedges on the 2025 U.S. Senior Notes
U.S.$650,0004.95%$933,9853.71 %March 2030(14,616)(17,025)
Total(116,599)(137,785)

CGI Inc. – Consolidated Financial Statements for the years ended September 30, 2026 and 2025    60

Notes to the Consolidated Financial Statements
For the years ended September 30, 2026 and 2025
(tabular amounts only are in thousands of Canadian dollars, except per share data)
32.    Financial instruments (continued)
MARKET RISK (CONTINUED)
Currency risk (continued)
During the year ended September 30, 2026, the Company entered into Canadian dollar to euro fixed for fixed cross-currency swap agreements for a notional amount of $100,000,000, related to the 2026 CAD Senior Notes which have maturity dates of June 2031. The cross-currency swaps were designated as hedging instruments on the Company’s net investment in European operations. In addition, during the year ended September 30, 2026, the Company entered into Canadian dollar to Swedish krona fixed for fixed cross-currency swap agreements for a notional amount of $210,000,000, related to the 2026 CAD Senior Notes which has a maturity date of December 2029. The cross-currency swaps were designated as hedging instruments on the Company’s net investment in Swedish operations.
In addition, during the year ended September 30, 2026, the Company entered into Canadian dollar to Danish krona fixed for fixed cross-currency swap agreements for a notional amount of $40,000,000, related to the 2026 CAD Senior Notes which has a maturity date of December 2029. The cross-currency swaps were designated as hedging instruments on the Company’s net investment in Danish operations.
During the year ended September 30, 2026, the Company settled cross-currency swaps with a notional amount of $68,070,000 for a net gain of $78,000 for which a gain of $872,000 related to the cash flow hedge was recorded in net finance costs and a loss of $794,000 related to the net investment hedge was recognized in other comprehensive income and will be transferred to earnings when the net investment is disposed of.
As at September 30, 2026, the Company held foreign currency forward contracts to hedge exposures to changes in foreign currency, which have the following notional, average contract rates and maturities:
Average contract rates
As at
September 30, 2026		As at
September 30, 2025
Foreign currency forward contracts
Notional
Less than one year
More than one year
Fair value
Fair value
$$
USD/INRU.S.$464,51190.6896.96(40,123)(16,732)
CAD/INR$389,41266.5072.01(15,685)(5,425)
EUR/INR€170,875104.55116.34(12,981)(17,312)
GBP/INR£102,268115.22126.89(15,958)(12,921)
SEK/INRkr270,6409.3610.54(1,232)(3,075)
EUR/MAD€15,26810.80—(472)(87)
EUR/CZK€25,93225.2825.39766 724 
Others$53,826——(2,501)(1,768)
Total(88,186)(56,596)
The following table details the Company's sensitivity to a 10% strengthening of the euro, the U.S. dollar, the British pound and the Swedish krona, foreign currency rates on net earnings and on other comprehensive income (loss). The sensitivity analysis on net earnings presents the impact of foreign currency denominated financial instruments and adjusts their translation at period end for a 10% strengthening in foreign currency rates. The sensitivity analysis on other comprehensive income (loss) presents the impact of a 10% strengthening in foreign currency rates on the fair value of foreign currency forward contracts designated as cash flow hedges and on net investment hedges.
20262025
euro
impact		U.S. dollar
 impact		British pound impactSwedish
krona impact		euro
impact		U.S. dollar
 impact		British pound impactSwedish
krona impact
$$$$$$$$
Increase in net
   earnings
1,386 623 461 278 2,806 5,827 990 265 
 Decrease in other
   comprehensive income (loss)
(212,236)(182,526)(18,949)(33,557)(211,271)(235,753)(22,262)(20,296)

CGI Inc. – Consolidated Financial Statements for the years ended September 30, 2026 and 2025    61

Notes to the Consolidated Financial Statements
For the years ended September 30, 2026 and 2025
(tabular amounts only are in thousands of Canadian dollars, except per share data)
32.    Financial instruments (continued)
LIQUIDITY RISK
Liquidity risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial assets. The Company’s activities are financed through a combination of the cash flows from operations, borrowing under existing unsecured committed revolving credit facility, the issuance of debt and the issuance of equity. One of management’s primary goals is to maintain an optimal level of liquidity through the active management of the assets and liabilities as well as the cash flows. The Company regularly monitors its cash forecasts to ensure it has sufficient flexibility under its available liquidity to meet its obligations.
The following tables summarize the carrying amount and the contractual maturities of both the interest and principal portion of financial liabilities. All amounts contractually denominated in foreign currency are presented in Canadian dollar equivalent amounts using the period-end spot rate or floating rate.
As at September 30, 2026
Carrying amount
Contractual cash flows
Less than
one year
Between one and
three years
Between
three and five years
Beyond
five years
$
$
$
$
$
$
Non-derivative financial liabilities
Accounts payable and accrued liabilities1,085,461 1,085,461 1,085,461 — — — 
Accrued compensation and employee-related
   liabilities		1,220,513 1,220,513 1,220,513 — — — 
2021 U.S. Senior Notes564,445 633,990 13,078 26,156 594,756 — 
2021 CAD Senior Notes598,587 625,200 12,600 612,600 — — 
2024 CAD Senior Notes748,001 817,946 330,623 487,323 — — 
2025 U.S. Senior Notes915,007 1,084,054 45,737 91,474 946,843 — 
2026 CAD Senior Notes497,328 587,332 16,273 43,395 527,664 — 
Other long-term debt990 1,073 384 496 193 — 
Lease liabilities 631,489 705,603 192,744 295,165 142,262 75,432 
Clients’ funds obligations1,047,639 1,047,639 1,047,639 — — — 
Derivative financial liabilities
Cash flow hedges of future revenue90,019 
Outflow1,514,869 539,628 766,160 209,081 — 
(Inflow)(1,512,492)(511,439)(772,746)(228,307)— 
Cross-currency swaps117,495 
Outflow2,711,975 387,978 1,270,158 1,053,839 — 
(Inflow)(2,800,918)(393,715)(1,207,839)(1,199,364)— 
7,516,974 7,722,245 3,987,504 1,612,342 2,046,967 75,432 











CGI Inc. – Consolidated Financial Statements for the years ended September 30, 2026 and 2025    62

Notes to the Consolidated Financial Statements
For the years ended September 30, 2026 and 2025
(tabular amounts only are in thousands of Canadian dollars, except per share data)
32.    Financial instruments (continued)
LIQUIDITY RISK (CONTINUED)
As at September 30, 2025
Carrying amount
Contractual cash flows
Less than
one year
Between one and
three years
Between
three and five years
Beyond
five years
$
$
$
$
$
$
Non-derivative financial liabilities
Accounts payable and accrued liabilities1,014,834 1,014,834 1,014,834 — — — 
Accrued compensation and employee-related
   liabilities		1,269,767 1,269,767 1,269,767 — — — 
2021 U.S. Senior Notes1,386,564 1,481,011 859,688 25,633 25,633 570,057 
2021 CAD Senior Notes597,892 637,380 12,180 625,200 — — 
2024 CAD Senior Notes747,001 846,508 28,562 349,284 468,662 — 
2025 U.S. Senior Notes894,509 1,105,226 42,831 89,646 972,749 — 
Other long-term debt11,869 12,016 11,147 570 204 95 
Lease liabilities693,484 779,572 197,735 296,202 177,385 108,250 
Clients’ funds obligations973,673 973,673 973,673 — — — 
Derivative financial liabilities
Cash flow hedges of future revenue58,536 — — — — — 
Outflow1,602,133 505,880 845,772 250,481 — 
(Inflow)(1,632,658)(492,218)(865,405)(275,035)— 
Cross-currency swaps139,191 — — — — — 
Outflow2,797,646 133,358 1,127,564 1,499,067 37,657 
(Inflow)(2,691,418)(153,134)(1,059,582)(1,442,517)(36,185)
7,787,320 8,195,690 4,404,303 1,434,884 1,676,629 679,874 
As at September 30, 2026, the Company held cash and cash equivalents, funds held for clients, short-term investments and long-term investments of $1,573,399,000 ($1,874,007,000 as at September 30, 2025). The Company also had available $2,496,391,000 in unsecured committed revolving credit facility ($1,496,248,000 as at September 30, 2025). As at September 30, 2026, trade accounts receivable amounted to $1,272,970,000 (Note 4) ($1,343,282,000 as at
September 30, 2025). Given the Company’s available liquid resources as compared to the timing of the payments of liabilities, management assesses the Company’s liquidity risk to be low.
CREDIT RISK
The Company takes on exposure to credit risk, which is the risk that a counterparty will be unable to pay amounts in full when due. Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash and cash equivalents, accounts receivable, work in progress, long-term investments and derivative financial instruments with a positive fair value. The maximum exposure of credit risk is generally represented by the carrying amount of these items reported on the consolidated balance sheets.
The Company is exposed to credit risk in connection with long-term investments through the possible inability of borrowers to meet the terms of their obligations. The Company mitigates this risk by investing primarily in high credit quality corporate and government bonds with a credit rating of A- or higher. The application of the low credit exemption had no material impact on the Company's consolidated financial statements.
The Company has accounts receivable derived from clients engaged in various industries including government; financial services; manufacturing, retail and distribution; communications and utilities; and health that are not concentrated in any specific geographic area. These specific industries may be affected by economic factors that may impact trade accounts receivable. However, management does not believe that the Company is subject to any significant credit risk in view of the Company’s large and diversified client base and that any single industry or geographic region represents a significant credit risk to the Company. Historically, the Company has not made any significant write-offs and had low bad debt ratios. The application of the simplified approach to measure expected credit losses for trade accounts receivable and work in progress had no material impact on the Company's consolidated financial statements.

CGI Inc. – Consolidated Financial Statements for the years ended September 30, 2026 and 2025    63

Notes to the Consolidated Financial Statements
For the years ended September 30, 2026 and 2025
(tabular amounts only are in thousands of Canadian dollars, except per share data)
32.    Financial instruments (continued)
CREDIT RISK (continued)
The following table sets forth details of the age of trade accounts receivable that are past due:
20262025
$
$
Not past due1,175,252 1,195,658 
Past due 1-30 days75,465 92,167 
Past due 31-60 days34,221 24,089 
Past due 61-90 days12,059 11,284 
Past due more than 90 days231 26,238 
1,297,228 1,349,436 
Allowance for doubtful accounts(24,258)(6,154)
1,272,970 1,343,282 
In addition, the exposure to credit risk of cash, cash equivalents and cash included in funds held for clients and derivatives financial instruments is limited given that the Company deals mainly with a diverse group of high-grade financial institutions and that derivatives agreements are generally subject to master netting agreements, such as the International Swaps and Derivatives Association, which provide for net settlement of all outstanding contracts with the counterparty in case of an event of default.
33.    Capital risk management
The Company is exposed to risks of varying degrees of significance which could affect its ability to achieve its strategic objectives for growth. The main objectives of the Company’s risk management process are to ensure that risks are properly identified and that the capital base is adequate in relation to these risks.
The Company manages its capital to ensure that there are adequate capital resources while maximizing the return to shareholders through the optimization of the debt and equity balance. As at September 30, 2026, total managed capital was $14,928,793,000 ($15,509,222,000 as at September 30, 2025). Managed capital consists of long-term debt, including the current portion (Note 13), lease liabilities, cash and cash equivalents, short-term investments, long-term investments (Note 11) and shareholders’ equity. The basis for the Company’s capital structure is dependent on the Company’s expected business growth and changes in the business environment. When capital needs have been specified, the Company’s management proposes capital transactions for the approval of the Company’s Audit and Risk Management Committee and Board of Directors. The capital risk policy remains unchanged from prior periods.    
The Company monitors its capital by reviewing various financial metrics, including Net Debt/Capitalization.
Net debt represents debt (including the current portion and the fair value of foreign currency derivative financial instruments related to debt) and lease liabilities less cash and cash equivalents, short-term investments and long-term investments. Capitalization is shareholders’ equity plus net debt.
Furthermore, the Company is subject to covenants and ratios contained in its unsecured committed revolving credit facility. The ratios are as follows:
-    Leverage ratio, which is the ratio of total debt net of cash and cash equivalent investments to adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) for its unsecured committed revolving credit facility for the four most recent quarters. Adjusted EBITDA is calculated as earnings from continuing operations before finance costs, income taxes, depreciation, amortization, restructuring, acquisition and related integration costs1.
-    An interest and rent coverage ratio, which is the ratio of the EBITDAR for the four most recent quarters to the total finance costs and the operating rentals in the same periods. EBITDAR is calculated as adjusted EBITDA before rent expense1.
These ratios are calculated on a consolidated basis. The Company believes that the results of the current internal ratios are consistent with its capital management's objectives.
The Company is in compliance with these covenants and ratios and monitors them on an ongoing basis. The ratios are also reviewed quarterly by the Company’s Audit and Risk Management Committee. The Company is not subject to any other externally imposed capital requirements.
1    In the event of an acquisition, the available historical financial information of the acquired company will be used in the computation of the ratios.
CGI Inc. – Consolidated Financial Statements for the years ended September 30, 2026 and 2025    64