If I could only buy and hold one Canadian stock for the long run right now, my choice would have to be CGI (TSX:GIB.A). That might sound like a bold claim, but when you look closely at what this Canadian stock does, how it performs, and how it’s positioning itself for the future, it’s hard not to be impressed. CGI checks nearly every box when it comes to long-term value, steady growth, and adaptability, three things that matter a lot when investing with decades in mind.
About CGI stock
CGI is one of the world’s largest IT and business consulting services firms. Headquartered in Montreal, it operates in over 400 locations worldwide. What makes CGI unique is its ability to work behind the scenes on everything from digital transformation to cybersecurity and cloud solutions for governments and major corporations. These services are in demand regardless of economic cycles, making CGI a resilient and dependable player.
In its second quarter of fiscal 2025, CGI delivered another strong performance. The IT consultancy reported revenue of $4 billion, up 7.6% from the same quarter last year. It also posted adjusted earnings before interest (EBIT) of $666 million, with a healthy margin of 16.5%. Net earnings came in at $481 million, which represented a net margin of 11.9%. These are solid numbers that show the Canadian firm knows how to grow profitably. It’s not just about chasing sales, CGI continues to run an efficient, high-margin business.
More to come
What’s more impressive is the company’s track record of reinvesting in itself. CGI continues to grow through strategic acquisitions, picking up companies that expand its capabilities and global reach. In Q2 2025 alone, it acquired BJSS in the UK, Novatec in Germany and Spain, and Momentum Technologies in Quebec. These additions broaden CGI’s footprint while also deepening its bench of expertise in high-growth areas like cloud integration and digital consulting.
Unlike some tech companies that scale too fast and struggle with integration, CGI has a proven playbook. It has completed dozens of acquisitions over the years, and each time, it finds a way to integrate the new business without disrupting margins or culture. That’s a skill in itself, and it’s one that CGI has mastered.
The company also boasts a massive backlog. As of the latest quarter, CGI’s contract backlog stood at $31 billion, which is more than double its annual revenue. That gives the business a ton of visibility into future earnings. Its book-to-bill ratio was 112%, meaning it signed more new contracts than it billed during the quarter. In North America alone, that ratio hit 124%. This signals that demand remains strong and growing, especially in its largest market.
Strength in numbers
Now let’s talk about one of the things that makes CGI so attractive for long-term investors, and that’s its capital allocation strategy. CGI doesn’t pay a dividend, but instead focuses on reinvesting in the business and buying back shares. It recently renewed its share repurchase program to buy back up to 10% of its public float. This signals management’s confidence in the company’s valuation and is great news for shareholders looking for capital appreciation.
Beyond the numbers, what I like most about CGI is its stability. It doesn’t chase hype. It doesn’t make big headlines. It just consistently delivers. Whether the market is up or down, CGI is busy helping governments manage infrastructure or businesses modernize their IT systems. That’s not flashy, but it’s the kind of work that doesn’t go out of style.
Bottom line
In a Tax-Free Savings Account (TFSA), where tax-free growth is the goal, CGI is a near-perfect candidate. It has a long runway for growth, generates strong free cash flow, and has a proven history of turning those cash flows into shareholder value. If you’re looking for something that won’t keep you up at night but could quietly compound over the next 10 or 20 years, this is it.
So, if I had to pick just one Canadian stock to buy and hold forever, CGI would be the one. It’s steady, smart, and built to last. And in a world where tech trends change quickly and market noise is loud, having a Canadian stock like CGI in your corner is the kind of quiet strength that long-term investors dream of.
