How New Jersey’s 10-Year SIROMS Contract Extension Could Shape CGI’s (TSX:GIB.A) Public Sector Trajectory

• On September 26, 2025, the State of New Jersey announced it has awarded CGI Inc. a new 10-year contract to continue developing and supporting its State Integrated Recovery Operations Management Systems (SIROMS) platform, which manages disaster recovery and federal funding.
• The selection reinforces CGI's long-standing relationship with New Jersey and highlights the company’s expanding presence in U.S. public-sector IT services, particularly in disaster response technology.
• We'll assess how the long-term New Jersey contract renewal strengthens CGI's revenue visibility and outlook in its public-sector portfolio.

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CGI Investment Narrative Recap

Being a shareholder in CGI is essentially a belief in the company's ability to secure major, multi-year contracts in digital transformation and managed services, especially within the public sector. The recent 10-year contract renewal with New Jersey strengthens visibility in public-sector revenue, but does not fully offset short-term concerns around softness in larger enterprise deals and lingering macroeconomic uncertainty, which remain the central catalysts and risks to monitor.

Among recent announcements, the sizeable three-year extension for managed services in California is most relevant, reflecting CGI's ongoing success in locking in substantial government clients. This speaks directly to the importance of public-sector deal flow as a counterbalance to unpredictable enterprise cycles and international market headwinds.

However, investors should also be aware, unlike with public-sector contracts, reliance on cyclical enterprise clients exposes CGI to...

Read the full narrative on CGI (it's free!)

CGI's narrative projects CA$17.9 billion revenue and CA$2.3 billion earnings by 2028. This requires 4.8% yearly revenue growth and a CA$0.6 billion earnings increase from CA$1.7 billion today.

Uncover how CGI's forecasts yield a CA$171.17 fair value, a 36% upside to its current price.

Exploring Other Perspectives

The Simply Wall St Community’s seven fair value estimates for CGI range from CA$125.70 to a striking CA$15,301.68, displaying sharp differences in outlook. While many see upside linked to recurring revenue from large contracts, a key risk remains client budget cycles and rebidding pressures that could weigh on near-term revenue clarity, make sure to compare these views for a fuller picture of where CGI may head next.

Explore 7 other fair value estimates on CGI - why the stock might be worth just CA$125.70!

Build Your Own CGI Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your CGI research is our analysis highlighting 5 key rewards that could impact your investment decision.
• Our free CGI research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate CGI's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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