CGI is a global IT-services company with an outsize exposure to governments. Compared with private-sector customers, which make IT spending decisions based on the prevailing macro sentiment, governments have more-stable spending patterns. We see this affecting CGI’s performance both positively and negatively. When IT demand boomed during the pandemic, CGI’s growth was mostly in line with or slightly below that of its peers. However, as overall demand started to fade in late 2024, the trend reversed and CGI became one of the fastest-growing IT-services names. That said, near-term volatility with government IT spending is still possible as the budgeting process becomes more unpredictable.