CGI Secures 10-Year New Jersey Disaster Recovery Contract

CGI has secured significant multi-year contracts with both New Jersey and Texas, reinforcing its position as a leading provider of government technology solutions. In New Jersey, CGI will continue its decade-long partnership to support the State Integrated Recovery Operations Management Systems (SIROMS), helping manage over $7.2 billion in federal disaster recovery funds and enhancing the state's readiness for future emergencies. Meanwhile, CGI won a contract with the Texas Comptroller of Public Accounts to replace legacy financial systems with its cloud-based Advantage® enterprise resource planning solution, aiming to modernize the state's financial backbone and improve reporting and compliance. Despite a recent 9% drop in CGI's stock price over the past year, the company is viewed by some investors as undervalued due to its strong growth prospects, margin expansion potential, and strategic focus on scalable SaaS solutions for governments. Both contracts highlight CGI's expanding presence in the public sector and its role in delivering scalable, modern technology to improve operational efficiency and financial transparency for state governments. However, ongoing macroeconomic uncertainties and integration challenges from acquisitions remain potential risks to CGI's organic growth and margins.