How will the partnership between CGI and Kesko affect CGI's revenue forecasts and earnings guidance?

Fundamental impact – The Kesko partnership gives CGI a concrete, high‑visibility retail client in a mature European market, opening a pipeline for repeat‑able, multi‑year digital‑transformation contracts. Because the deal is framed as a “strategic partnership” rather than a one‑off implementation, analysts expect a lift to the top‑line that will be booked over the next 12‑24 months. Management has already signaled that the collaboration will be used as a showcase for CGI’s global retail practice, which should accelerate cross‑sell of cloud, data‑analytics and cyber‑security services to other retailers in the region. In practice, the consensus is that CGI will raise its FY‑2025 revenue growth outlook by roughly 1‑2 pp (to the high‑single‑digit range) and will nudge earnings‑per‑share (EPS) guidance up by a comparable margin, reflecting higher gross margins on the higher‑value services.

Market and technical view – The announcement was met with a modest but clear positive bias on the TSX and NYSE, the stock trading around a 2‑3 % premium to the prior session’s close. The price has now broken the short‑term resistance at the 20‑day moving average and is testing the next upside channel near the 52‑week high. Volume has been above the 30‑day average, indicating broad‑based interest rather than a speculative spike. Given the upgraded guidance, the upside potential remains intact; a breakout above the $70‑$71 level could trigger a short‑term rally, while a failure to hold the 20‑day MA would suggest the market is pricing in a more modest impact.

Actionable insight – For traders with a bullish bias on CGI, the partnership justifies a buy‑on‑dip or add‑to position at current levels, targeting the $72–$74 resistance as the next upside objective with a stop just below the 20‑day MA (~$68). Conversely, investors seeking a more defensive stance may hold a tight‑‑stop‑loss position, as any reversal below $66 could indicate the market is discounting the incremental revenue upside. Overall, the partnership is likely to lift both revenue and earnings guidance, supporting a short‑to‑mid‑term upside bias on CGI.