It’s easy to assume that a falling stock must mean something is badly wrong with the company. Sometimes that’s true. Sometimes it’s not. CGI (TSX: GIB.A) could be a good example of why investors should not judge a stock by looking at its recent share price movement.
Although CGI stock has lost a lot of ground over the last year, the company is still making money, producing strong cash flow, and building a large book of future business. At the same time, it’s also expanding into newer areas such as artificial intelligence (AI) and quantum computing instead of simply relying on its older services. While these efforts don’t erase its weak stock performance, they do make the full picture more balanced.
In this article, I’ll explain why CGI could be worth considering and what makes it one of the most overlooked stocks on the TSX today.
An overlooked Canadian tech stock
Simply put, this Canadian technology firm provides information technology and business consulting services around the world. Its offerings range from strategic consulting and systems integration to managed IT services, business process services, and intellectual property solutions.
After diving by nearly 24% so far in 2026, CGI stock now trades at $95.90 per share, giving it a market cap of roughly $17.5 billion. In addition, the stock offers a small 0.7% annualized dividend yield.
The recent decline in CGI stock is part of what makes this overlooked TSX stock even more interesting today, as the company remains profitable and continues to show growth in several important areas.
Strong results beneath the weak share price
In the third quarter of fiscal 2026 (ended in June), the company’s revenue rose 2.5% year over year (YoY) to about $4.2 billion. CGI’s net earnings climbed nearly 14% YoY to $465 million, while earnings per share jumped 22.5% to $2.23.
Adding to the optimism, its cash generation remained strong as the business generated about $605 million in operating cash flow during the quarter, up from roughly $487 million a year ago.
CGI ended the June quarter with a solid backlog of $31.8 billion, compared with $30.6 billion a year ago. Meanwhile, its trailing 12-month book-to-bill ratio reached 108.1%, with the company focusing on government-sector awards.
For a stock that has struggled on the market, those figures suggest the underlying business is performing much better than the share price might imply.
New growth opportunities are taking shape
Another key reason you may want to consider this overlooked TSX stock right now is CGI’s continued investment in emerging technologies. Earlier in September, CGI acquired Callibrity, bringing 120 consultants into the business while expanding its capabilities in production-ready enterprise AI, platform engineering, and digital product development.
Similarly, the company recently partnered with D-Wave Quantum to help clients apply quantum computing to areas such as transportation, retail, production planning, energy-grid optimization, and asset maintenance scheduling.
More importantly, CGI Federal also entered an applied research agreement with the U.S. Defense Logistics Agency and the University of Tennessee. This initiative will explore how agentic AI and quantum computing could support warehouse management and improve supply-chain and logistics resilience.
Such projects give CGI more exposure to technologies that could become increasingly important for enterprise and government clients. Combined with its large backlog, rising earnings, and strong cash generation, these strengths make CGI an attractive, overlooked TSX stock for long-term investors willing to look past its recent share-price weakness.