Gartner (IT) Q3 2024 Earnings
How Did IT Stock React to Q3 2024 Earnings?
S&P 500 over the same 30 days: +5.39%.
Did IT Beat Earnings? Q3 2024 Results
Yes. Gartner reported Q3 2024 earnings of $2.50 a share on Nov 5, 2024, beating the $2.38 consensus estimate by 5.0%. Revenue was $1.5B against a $1.5B estimate.
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.
- 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
“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.”
Gartner CEO, on the earnings call
What Was Gartner's Outlook in Q3 2024?
Gartner updated its full-year 2024 financial outlook, with details available in a separate earnings supplement on the company's Investor Relations website. The CEO noted the company remains on a path to long-term, sustained, double-digit growth.
IT YoY Financials
| Metric | Q3 2024 | Q3 2023 | Year over year |
|---|---|---|---|
| Revenue | $1.5B | $1.4B | +5.4% |
| Operating Income | $245.8M | $244.4M | +0.6% |
| Net Income | $415.0M | $180.0M | +130.5% |
IT Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.