1 TSX stock to buy and hold forever, especially in a TFSA

If you want to put one TSX stock in a tax-free savings account (TFSA) and forget about it, you need more than a pretty chart. You need a business that can continue to evolve despite recessions, interest rate fluctuations and technology fads, all while adding new contribution space. Look for sustainable demand, strong cash generation, sensible debt and a valuation that leaves room for error. A forever pick should also put you to sleep, because the biggest TFSA killer is panic selling at the wrong time. Track your contributions, automate deposits, and reinvest any dividends so compounding happens on autopilot while you focus on life. That’s why today we’re looking at this autopilot option.

C.G.I

C.G.I (TSX:GIB.A) fits the mold of a “silent compounder” better than most. It runs an IT services and consulting business that helps governments and large corporations modernize systems, manage data and operate critical applications. Managed services add recurring work, which can improve results when budgets suddenly tighten. Customers sign multi-year contracts and CGI often stays close to customers through local delivery teams. That model makes sales feel steadier than many tech names when the economy cools.

The stock’s recent story has been inconsistent, which actually helps buyers in the longer term. Shares are near the low $120s today, with a 52-week range of $117.71 to $175.35, with shares down about 24% at the time of writing. That drop could look ugly, but could provide patient TFSA investors with a more reasonable entry point.

Zoom out and CGI still looks like a company that knows how to execute. It grew through acquisitions and continues to buy back shares as cash flow allows. In fiscal 2025, the company invested $1.27 billion in share repurchases under its buyback program. When a TSX stock can fund both mergers and acquisitions and buybacks without starving operations, it usually indicates a healthy engine.

Revenue support

Now let’s discuss income, because that’s where money is earned ‘forever’. In the fourth quarter of fiscal 2025, CGI reported revenues of $4.01 billion, up 9.7% year-over-year, and booked bookings of $4.79 billion, for a book-to-bill ratio of 119.2%. It also generated $663 million in cash flow from operations in the quarter. These figures show that demand remained strong and money continued to flow.

For the full fiscal year 2025, CGI reported revenue of $15.91 billion, up 8.4% year over year. It posted net income of $1.66 billion and diluted earnings per share (EPS) of $7.35, with adjusted diluted earnings per share of $8.30. It also reported a backlog of $31.45 billion, equivalent to about twice its annual revenue. That gap is important for a single-share TFSA because it increases visibility.

The prospects for next year depend on execution and balance sheet discipline. CGI completed a restructuring program in the fourth quarter and management pointed to an expanded pipeline of new opportunities. It also had higher net debt at year-end, with net debt of $3.45 billion and a net debt-to-capitalization ratio of 25.1%. That level doesn’t scare me, but it does raise the bar for sustained cash flow.

In short

So, should you buy and hold GIB.A forever in a TFSA? If you want a high-yield check every month, this will disappoint you. If you want a Canadian tech blue-chip TSX stock that can continue to grow through contracts, backlogs, disciplined M&A, and steady cash flow, this could be the “forever” job. The stock’s pullback over the past year gives you a better entry point than near its highs. Add it up, keep contributing, reinvest the dividend and give it years instead of weeks because time does the heavy lifting here.