Q3 24 EPS
$2.50
BEAT +5.04%
Est. $2.38
Q3 24 Revenue
$1.48B
BEAT +0.62%
Est. $1.48B
vs S&P Since Q3 24
-104.7%
TRAILING MARKET
IT -75.3% vs S&P +29.5%
Market Reaction
Did IT Beat Earnings? Q3 2024 Results
Gartner delivered a solid beat on both top and bottom lines in Q3 2024, posting adjusted EPS of $2.50 against the $2.38 consensus estimate, a 5.04% beat, while revenue of $1.48 billion edged past expectations by 0.62% and grew 5.4% year over year. Th… Read more Gartner delivered a solid beat on both top and bottom lines in Q3 2024, posting adjusted EPS of $2.50 against the $2.38 consensus estimate, a 5.04% beat, while revenue of $1.48 billion edged past expectations by 0.62% and grew 5.4% year over year. The headline numbers, however, were shaped by a remarkable one-time item: a $300 million gain from event cancellation insurance claims tied to events scrapped in 2020 and 2021, which propelled GAAP net income up 130.6% to $415 million and GAAP diluted EPS to $5.32. Beneath that windfall, the underlying business showed steady if measured progress, with the Research segment contributing $1.28 billion in revenue at a 73.7% gross contribution margin, and total contract value reaching $5 billion, up 7.3% on an FX-neutral basis. Free cash flow surged 86.8% to $565 million, partly reflecting the insurance settlement. CEO Gene Hall reiterated confidence in a long-term path toward sustained double-digit growth, citing a large addressable market and strong client demand.
Key Takeaways
- • Contract value reached $5.0 billion, growing 7.3% YoY FX neutral
- • Global Business Sales contract value grew 11.6% FX neutral, outpacing GTS growth of 6.1%
- • Conferences revenue surged 32.5% YoY with contribution margin expanding to 40.2%
- • $300 million gain on event cancellation insurance claims for events cancelled in 2020 and 2021
- • Strong free cash flow generation of $565 million, up 86.8% YoY
IT YoY Financials
Q3 2024 vs Q3 2023, source: SEC Filings
IT Revenue by Segment
With YoY comparisons, source: SEC Filings
“Revenue, Adjusted EBITDA, and Adjusted EPS were ahead of expectations. Contract value in the third quarter grew high single digits. We remain on a path to long-term, sustained, double-digit growth because of the compelling client value proposition we offer and the large addressable market we serve.”
— Gene Hall, Q3 2024 Earnings Press Release
IT Earnings Trends
IT vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
IT EPS Trend
Earnings per share: estimate vs actual
IT Revenue Trend
Quarterly revenue: estimate vs actual
IT Quarterly Results
7 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q1 26 BEAT | $2.92 | $3.32 | +13.64% | $1.51B | -0.28% |
| Q4 25 BEAT FY | $3.51 | $3.94 | +12.21% | $1.75B | +0.21% |
| FY Full Year | — | $13.17 | — | $6.50B | — |
| Q3 25 BEAT | $2.43 | $2.76 | +13.73% | $1.52B | +0.23% |
| Q2 25 BEAT | $3.31 | $3.53 | +6.80% | $1.69B | +0.74% |
| Q1 25 BEAT | $2.72 | $2.98 | +9.71% | $1.53B | -0.05% |
| Q4 24 BEAT FY | $3.26 | $5.45 | +67.22% | $1.72B | +1.46% |
| FY Full Year | — | $14.09 | — | $6.30B | — |
| Q3 24 BEAT | $2.38 | $2.50 | +5.04% | $1.48B | +0.62% |