CGI Inc.

ladies and gentlemen, and welcome to CGI's second quarter fiscal 2026 conference call. I would now like to turn the meeting over to Mr. Kevin Linder, SVP of Investor Relations. Please go ahead, Mr. Linder.

Thank you, Sylvia, and good morning. With me to discuss CGI's second quarter fiscal 2026 results are Francois Belanger, our President and CEO, and Steve Perron, Executive Vice President and CFO. This call is being broadcast on cgi.com and recorded live at 9 a.m. Eastern Time on Wednesday, April 29, 2026. Supplemental slides, as well as a press release we issued earlier this morning, are available for download, along with our MD&A financial statements and accompanying notes, all of which have been filed with both Cedar Plus and Edgar. Please note that some statements made on the call may be forward-looking. Actual events or results may differ materially from those expressed or implied NCGI disclaims any intent or obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise. The complete safe harbor statement is available in both our MD&A and press release, as well as on cgi.com. We recommend our investors read it in entirety. We're reporting our financial results in accordance with international financial reporting standards, or IFRS. As always, we will also discuss non-GAAP performance measures, which should be viewed as supplemental. The MD&A contains definitions of each one used in our reporting. All of the dollar figures expressed on this call are Canadian and less otherwise noted. Now I'll turn the call over to Steve to review our Q2 financials, and then Francois will comment on business and market outlook. Steve.

Thank you, Kevin, and good day, everyone. In our second quarter of fiscal 2026, we continued to create value for our shareholders while executing on our AI strategy. In the quarter, we delivered $4.2 billion of revenue, up 3.3% year-over-year, or up 1.6% when excluding the impact of foreign exchange. Growth was driven by our recent business acquisitions and continued demand for our APAC delivery center, especially from our North American clients. APAC reported growth of 7.2% supported by DJOps, our award-winning AI-powered offering for the delivery of managed services. In our UK and Australia segment, with our acquisition of BJSS, growth was 16.5%. In our Western and Southern Europe segment, growth was 8.3%, led by our acquisition of EPSID, which added scale for our software engineering services. Our U.S. federal unit took a bit longer to recover from delays in decision-making and the ramp-up of new contracted work following the fall U.S. government shutdowns. This segment improves sequentially, and based on what we see in the pipeline and our booking strength in Q2, we expect that CGI federal will return to positive organic growth in Q3. We also were impacted by delays in decision-making across Europe, mainly with the Nordic countries. Bookings in the quarter were $4.3 billion, or a book-to-bill ratio of 104%, led by a strong return in our U.S. federal segment at 122%. Other notable segments were concentrated in Europe, with Germany at 114%, and Scandinavia, Northwest and Central East Europe, and WSC both at 111%. Managed services and SINC each had a book-to-bill ratio of 104% in the quarter. For SINC, this represented a continued sequential improvement over the last three quarters. SINC projects are shorter in duration relative to managed services but realize revenue much sooner after their bookings. On a trading 12-month basis, bookings reached a record high of $18 billion, up 6%, or nearly $1 billion. Book-to-bill ratio was 108%, with North America at 117% and Europe at 102%. On the same basis, managed services had a book-to-bill ratio of 118%, and the SINC book-to-bill ratio was 98%. Our contracted backlog stands at $31.5 billion or 1.9 times revenue. Of the $31.5 billion, we have almost $12 billion in already contracted revenue to be realized over the next 12 months. Turning to profitability. Adjusted debit in the quarter was $692 million, up 3.9% year-over-year, for a very strong margin of 16.6%, up 10 basis points. Including acquisition and related integration costs of $41 million, earnings before income taxes were $618 million, for a margin of 14.9%. Our effective tax rate in the quarter was 26.6%, an increase from the 25.9% in the prior year when excluding the tax impacts from acquisition and related integration costs. The increase is mainly explained by the new corporate tax surcharge in France. Based on enacted rates at the end of the quarter in our current profitability mix, we expect our tax rate for future quarters to be in the range of 26 to 27%. Adjusted net earnings were $483 million for a margin of 11.6%. On the same basis, diluted EPS was $2.27, an accretion of 7.1% when compared to Q2 last year. Net earnings were $445 million for a margin of 10.7%, and diluted EPS was $2.09, an accretion of 10.6% when compared to Q2 last year. Turning to cash. On the back of strong cash generation in our first quarter with $180 million of prepayments from clients, In Q2, we generated $451 million, representing 11% of total revenue. Our cash on a trailing 12-month basis was $2.5 billion, representing 15% of revenue. The ESO was 40 days unchanged when compared to the prior year. In Q2, We continued to deploy our capital and invested $105 million back in her business, which includes strategic investment in Advanced AI, $397 million to buy back our stock, and in addition, we returned $36 million to our shareholders under our dividend program. Yesterday, our board of directors approved a quarterly cash dividend of 17 cents per share. This dividend is payable on June 19, 2026 to shareholders of records as of the close of business on May 15, 2020. At quarter end, BGI had over $2.2 billion in capital resources readily available and a net debt leverage ratio of just over one. And yesterday, we increased our credit facility by $1 billion, now totaling $2.5 billion, providing additional financial capacity for our built-and-buy growth plans. Our capital allocation priorities have always remained consistent to deliver shareholder value. Investing back in the business, pursuing accretive acquisitions, and share buybacks. I will turn the call over to François to further discuss insights on the quarter, the progress on our AI strategy, and the outlook for our business and markets. François.