Gartner Inc

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.