Alithya reports Q2 earnings miss, revenue below forecasts

Alithya Group Inc. reported second-quarter earnings that missed analyst projections, with adjusted profit per share declining to 10 Canadian cents, 4 cents below estimates. Revenue for the period totaled C$178.6 million, down 5.2% year-over-year and falling short of the C$185 million consensus forecast.

The Montreal-based IT consulting and digital transformation services provider cited weaker demand in its core Canadian market as a key factor behind the shortfall. The company noted that while project pipelines remained healthy, client spending had softened in recent months, particularly among mid-sized enterprises.

Alithya’s adjusted EBITDA margin contracted to 8.1% from 9.3% in the same period last year, reflecting higher operating costs and pricing pressure. The firm maintained its full-year guidance, reaffirming revenue expectations of C$740 million to C$760 million and adjusted EBITDA of C$65 million to C$70 million.

Shares of Alithya were down 3.2% in pre-market trading following the results. The company has not provided an updated outlook update beyond its annual guidance.

The earnings miss follows a broader trend of subdued corporate IT spending in Canada, as businesses prioritize cost discipline amid economic uncertainty. Alithya’s performance contrasts with some peers in the sector that have reported stronger demand for cloud and cybersecurity services.