Gartner (IT) Announces First Quarter 2025 Earnings Results

Gartner, Inc. (IT) today announced its financial results for the recent quarter. The company reported earnings per share of $232, significantly surpassing the estimated $2.72, marking a substantial beat. However, Gartner’s quarterly revenue came in at $1.5341 billion, slightly below the anticipated $1.5348 billion, resulting in a revenue miss. Despite the revenue shortfall, the impressive earnings per share highlight the company’s strong financial performance.

Key Highlights:

• Gartner reported first-quarter 2025 revenues of $1.5 billion, marking a 4.2% increase as reported and a 5.7% increase on an FX-neutral basis.
• Net income for the quarter was $211 million, with adjusted EBITDA at $385 million, reflecting a 0.7% increase as reported and a 2.9% increase FX-neutral.
• Diluted EPS was $2.71, a 1.5% increase, while adjusted EPS was $2.98, a 1.7% increase.
• Operating cash flow increased by 66.0% to $314 million, and free cash flow rose by 73.3% to $288 million.
• Contract value grew by 7%, with Global Technology Sales Contract Value at $3.9 billion and Global Business Sales Contract Value at $1.2 billion.
• Gartner’s CEO, Gene Hall, emphasized the company’s focus on managing costs and investing for future growth.

Summary:

Gartner, Inc. reported robust financial results for the first quarter of 2025, with revenues reaching $1.5 billion, a 4.2% increase from the previous year, and a 5.7% increase on an FX-neutral basis. The company achieved a net income of $211 million, with adjusted EBITDA at $385 million, reflecting a 0.7% increase as reported and a 2.9% increase FX-neutral. Diluted EPS was $2.71, a 1.5% increase, while adjusted EPS was $2.98, a 1.7% increase. Operating cash flow saw a significant rise of 66.0% to $314 million, and free cash flow increased by 73.3% to $288 million. Contract value grew by 7%, with Global Technology Sales Contract Value at $3.9 billion and Global Business Sales Contract Value at $1.2 billion.

Gene Hall, Gartner’s Chairman and CEO, commented on the results, stating, “First quarter financial results were ahead of our expectations. Contract value grew 7%. In a dynamic world, we are managing our costs to deliver Adjusted EBITDA Margin ahead of our initial guidance while also investing for future growth. We continue to provide significant value to our clients and will emerge from the current environment even stronger.” The company remains focused on strategic initiatives, managing costs, and investing in growth opportunities to enhance its value proposition to clients.

Gartner, Inc. (IT) has experienced a rollercoaster ride in its stock price over the past year. Despite a modest decline of 0.39% over the year, the stock has seen significant volatility, with a notable 21.09% drop over the past three months, although it has rebounded by 11.41% in the last month. This recent uptick could be attributed to the company’s strong fundamentals, as evidenced by its impressive free cash flow growth of 18.00% over two years and a robust net profit margin of 19.97%. The company’s price-to-earnings ratio of 26.67 suggests that investors are willing to pay a premium for its earnings, likely due to its solid return on invested capital of 51.37%. Furthermore, Gartner’s earnings per share have grown at a compound annual growth rate of 11.75% over two years, indicating strong profitability. While the revenue growth rate of 6.98% over the same period is moderate, the company’s ability to generate cash and maintain profitability positions it well for future growth. As such, investors may view the recent price fluctuations as an opportunity to capitalize on Gartner’s strong financial metrics.

Gartner, Inc. operates as a research and advisory company in the United States, Canada, Europe, the Middle East, Africa, and internationally. It operates through three segments: Research, Conferences, and Consulting. The Research segment delivers its research primarily through a subscription service that include on-demand access to published research content, data and benchmarks, and direct access to a network of research experts. The Conferences segment offers business professionals in an organization the opportunity to learn, share, and network. The Consulting segment offers market research, custom analysis, and on-the-ground support services. This segment also offers actionable solutions for IT-related priorities, including IT cost optimization, digital transformation, and IT sourcing optimization. Gartner, Inc. was founded in 1979 and is headquartered in Stamford, Connecticut.