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Gartner Earnings Surpass Estimates in Q2, Revenues Increase Y/Y
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Key Takeaways
Gartner's Q2 EPS of $3.53 beat estimates by 4.4% and rose 9.6% y/y.
Revenue grew 5.7% Y/Y to $1.7B, with all segments posting reported and currency-neutral growth.
IT cut its 2025 revenue and EBITDA guidance but raised its EPS outlook slightly to at least $11.75.
Gartner, Inc. (IT - Free Report) has reported second-quarter 2025 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate.
The company’s adjusted earnings per share of $3.53 beat the Zacks Consensus Estimate by 4.4% and increased 9.6% from the year-ago quarter. Revenues of $1.7 billion beat the consensus estimate by a slight margin and improved 5.7% year over year.
The IT stock has declined 30.5% in the year-to-date period compared with the 13.7% fall of the industry it belongs to and 7.3% growth of the Zacks S&P 500 Composite.
Revenues in the Insights segment were $1.3 billion, which increased 4.2% from the year-ago quarter on a reported basis and 4.1% on a foreign-currency-neutral basis. The gross contribution margin was 74.5%, which amounted to a gross contribution of $945 million in the second quarter of 2025.
Consulting segment revenues amounted to $135 million, which grew 6% from the year-ago quarter on a reported basis and 6.9% on a foreign-currency-neutral basis. The gross contribution margin was 40.3% in the reported quarter, which amounted to a gross contribution of $54 million.
Conferences’ revenues were $70 million, which gained 8.4% year over year on a reported basis and 8.5% on a foreign-currency-neutral basis. The gross contribution margin was 33.2%, which logged a gross contribution of $23 million.
Gartner’s Operating Performance
Adjusted EBITDA of $382 million moved up marginally from the year-ago quarter on a reported basis and 5% on a foreign-currency-neutral basis.
Balance Sheet & Cash Flow of IT
Gartner had $2.2 billion in cash and cash equivalents at the end of the quarter compared with $2 billion at the end of the preceding quarter. The long-term debt was $2.5 billion, flat with the first quarter of 2025.
The operating cash flow totaled $384 million and the free cash flow utilized was $347 million in the reported quarter. Capital expenditure totaled $36 million.
Gartner’s 2025 Outlook
For 2025, the company has lowered the guidance for total revenues and expects it to be at least $6.46 billion compared with the preceding quarter’s view of $6.54 billion. The guidance is lower than the Zacks Consensus Estimate of $6.57 billion.
IT has raised the guidance for adjusted earnings per share to at least $11.75 compared with the preceding quarter’s view of $11.70. The guidance is lower than the Zacks Consensus Estimate for earnings of $12.65 per share.
The adjusted EBITDA guidance has been lowered to at least $1.52 billion from the $1.53 billion given in the previous quarter. The free cash flow guidance is kept at least $1.15 billion.
VRSK’s adjusted earnings were $1.88 per share, surpassing the Zacks Consensus Estimate by 6.2% and increasing 8.1% from the year-ago quarter. Total revenues of $772.6 million beat the consensus estimate marginally and increased 7.8% on a year-over-year basis.
IQV’s adjusted earnings were $2.81 per share, beating the Zacks Consensus Estimate by 1.8% and rising 6.4% on a year-over-year basis. Total revenues of $4 billion surpassed the consensus estimate by 1.5% and grew 5.3% from the year-ago quarter.
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Gartner Earnings Surpass Estimates in Q2, Revenues Increase Y/Y
Key Takeaways
Gartner, Inc. (IT - Free Report) has reported second-quarter 2025 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate.
The company’s adjusted earnings per share of $3.53 beat the Zacks Consensus Estimate by 4.4% and increased 9.6% from the year-ago quarter. Revenues of $1.7 billion beat the consensus estimate by a slight margin and improved 5.7% year over year.
The IT stock has declined 30.5% in the year-to-date period compared with the 13.7% fall of the industry it belongs to and 7.3% growth of the Zacks S&P 500 Composite.
Gartner, Inc. Price, Consensus and EPS Surprise
Gartner, Inc. price-consensus-eps-surprise-chart | Gartner, Inc. Quote
IT’s Revenues by Segments
Revenues in the Insights segment were $1.3 billion, which increased 4.2% from the year-ago quarter on a reported basis and 4.1% on a foreign-currency-neutral basis. The gross contribution margin was 74.5%, which amounted to a gross contribution of $945 million in the second quarter of 2025.
Consulting segment revenues amounted to $135 million, which grew 6% from the year-ago quarter on a reported basis and 6.9% on a foreign-currency-neutral basis. The gross contribution margin was 40.3% in the reported quarter, which amounted to a gross contribution of $54 million.
Conferences’ revenues were $70 million, which gained 8.4% year over year on a reported basis and 8.5% on a foreign-currency-neutral basis. The gross contribution margin was 33.2%, which logged a gross contribution of $23 million.
Gartner’s Operating Performance
Adjusted EBITDA of $382 million moved up marginally from the year-ago quarter on a reported basis and 5% on a foreign-currency-neutral basis.
Balance Sheet & Cash Flow of IT
Gartner had $2.2 billion in cash and cash equivalents at the end of the quarter compared with $2 billion at the end of the preceding quarter. The long-term debt was $2.5 billion, flat with the first quarter of 2025.
The operating cash flow totaled $384 million and the free cash flow utilized was $347 million in the reported quarter. Capital expenditure totaled $36 million.
Gartner’s 2025 Outlook
For 2025, the company has lowered the guidance for total revenues and expects it to be at least $6.46 billion compared with the preceding quarter’s view of $6.54 billion. The guidance is lower than the Zacks Consensus Estimate of $6.57 billion.
IT has raised the guidance for adjusted earnings per share to at least $11.75 compared with the preceding quarter’s view of $11.70. The guidance is lower than the Zacks Consensus Estimate for earnings of $12.65 per share.
The adjusted EBITDA guidance has been lowered to at least $1.52 billion from the $1.53 billion given in the previous quarter. The free cash flow guidance is kept at least $1.15 billion.
Gartner carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Snapshot of Peers
Verisk (VRSK - Free Report) reported impressive second-quarter fiscal 2025 results.
VRSK’s adjusted earnings were $1.88 per share, surpassing the Zacks Consensus Estimate by 6.2% and increasing 8.1% from the year-ago quarter. Total revenues of $772.6 million beat the consensus estimate marginally and increased 7.8% on a year-over-year basis.
IQVIA Holdings Analytics Inc. (IQV - Free Report) posted impressive second-quarter 2025 results.
IQV’s adjusted earnings were $2.81 per share, beating the Zacks Consensus Estimate by 1.8% and rising 6.4% on a year-over-year basis. Total revenues of $4 billion surpassed the consensus estimate by 1.5% and grew 5.3% from the year-ago quarter.