Gartner Inc
Q3 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +1.55%.
Did IT Beat Earnings? Q3 2025 Results
Gartner delivered a stronger-than-expected third quarter, with adjusted earnings per share of $2.76 beating the $2.43 consensus estimate by 13.73%, even as a $150 million goodwill impairment charge tied to its struggling Digital Markets unit weighed heavily on GAAP results, dragging GAAP diluted EPS down to $0.47 from $5.32 a year ago. Revenue of $1.52 billion grew 2.7% year-over-year, edging just above consensus by 0.23%, though the modest headline figure masks a growing divergence across the business; Global Business Sales contract value expanded 7.1% on an FX-neutral basis, while Federal-related headwinds kept overall total contract value growth to 3.0% FX-neutral, with ex-Federal CV growth running at a notably healthier 6%. Some analysts have flagged rising AI competition and contract cancellations as structural concerns for Gartner's traditional advisory model. Looking ahead, management raised its full-year adjusted EBITDA and margin guidance and expressed confidence that contract value growth will accelerate into 2026, offering investors a forward-looking anchor against the quarter's more complicated GAAP picture.
- Contract value growth of 3.0% FX neutral, reaching $5.0 billion
- Global Business Sales CV growth of 7.1% FX neutral outpaced Global Technology Sales CV growth of 1.7%
- Adjusted EPS grew 10.4% year-over-year to $2.76
- Insights segment revenue grew 5.1% year-over-year
- CV growth of 6% excluding U.S. Federal business
“Third quarter financial results were ahead of expectations. Contract value grew 3%, or 6% excluding the US Federal business. We increased our Adjusted EBITDA and margin guidance for the year and continue to expect CV to accelerate in 2026. Seeing extraordinary value and a unique opportunity, we repurchased more than $1 billion of stock, a Gartner record for a single quarter.”
Gartner CEO, on the earnings call
Forward Guidance & Outlook
Gartner updated its financial outlook for full year 2025, increasing Adjusted EBITDA and margin guidance. Management expects contract value to accelerate in 2026. Excluding U.S. Federal business, contract value growth was 6%, indicating underlying momentum in commercial and non-Federal segments.
IT YoY Financials
IT Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.