Q1 25 EPS
$2.98
BEAT +9.71%
Est. $2.72
Q1 25 Revenue
$1.53B
MISS 0.05%
Est. $1.53B
vs S&P Since Q1 25
-103.8%
TRAILING MARKET
IT -70.1% vs S&P +33.6%
Market Reaction
Did IT Beat Earnings? Q1 2025 Results
Gartner delivered a profit-driven beat in the first quarter of 2025, with adjusted EPS of $2.98 clearing the $2.72 consensus estimate by 9.71%, even as revenue of $1.53 billion landed essentially in line with expectations, up 4.2% year over year. The… Read more Gartner delivered a profit-driven beat in the first quarter of 2025, with adjusted EPS of $2.98 clearing the $2.72 consensus estimate by 9.71%, even as revenue of $1.53 billion landed essentially in line with expectations, up 4.2% year over year. The earnings strength came largely from sharply improved cash conversion, with free cash flow jumping 73.3% to $288.00 million, alongside a lower share count of 77.8 million diluted shares that amplified per-share growth on net income that was broadly flat at $210.90 million. A key operational signal was contract value reaching $5.10 billion, growing 6.7% on an FX-neutral basis, with the Global Business Sales segment showing notably stronger momentum at 10.8% FX-neutral growth. CEO Gene Hall characterized results as ahead of internal expectations and noted that adjusted EBITDA margin is tracking above initial guidance, even as the company continues investing for growth amid a cautious macroeconomic backdrop, including tariff uncertainty that some analysts see as a headwind to contract value growth in coming quarters.
Key Takeaways
- • Contract value grew 6.7% FX neutral to $5.1 billion
- • Global Business Sales contract value grew 10.8% FX neutral, outpacing Global Technology Sales at 5.5%
- • Operating cash flow surged 66.0% year-over-year to $314 million
- • Free cash flow increased 73.3% to $288 million
- • Conferences gross contribution grew 17.7% with improving margins
- • Lower interest expense ($13 million vs $19 million) supported earnings
IT YoY Financials
Q1 2025 vs Q1 2024, source: SEC Filings
IT Revenue by Segment
With YoY comparisons, source: SEC Filings
“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.”
— Gene Hall, Q1 2025 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% |