Gartner (IT) Q1 2025 Earnings
How Did IT Stock React to Q1 2025 Earnings?
S&P 500 over the same 30 days: +7.22%.
Did IT Beat Earnings? Q1 2025 Results
Yes. Gartner reported Q1 2025 earnings of $2.98 a share on May 6, 2025, beating the $2.72 consensus estimate by 9.7%. Revenue was $1.5B against a $1.5B estimate.
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.
- 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
“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.”
Gartner CEO, on the earnings call
What Was Gartner's Outlook in Q1 2025?
Gartner updated its full-year 2025 financial outlook, with detailed guidance available in the earnings supplement on the company's investor relations website. CEO Gene Hall noted that adjusted EBITDA margin is running ahead of initial guidance, and the company is managing costs while investing for future growth in a dynamic macroeconomic environment.
IT YoY Financials
| Metric | Q1 2025 | Q1 2024 | Year over year |
|---|---|---|---|
| Revenue | $1.5B | $1.5B | +4.2% |
| Gross Profit | $1.1B | $1.0B | +4.5% |
| Operating Income | $278.0M | $273.9M | +1.5% |
| Net Income | $210.9M | $210.5M | +0.2% |
IT Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.