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Gartner Earnings Surpass Estimates in Q3, Revenues Increase Y/Y
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Key Takeaways
Gartner's Q3 EPS of $2.76 beat estimates by 14.5% and rose 10.4% y/y.
Revenues grew 2.7% y/y to $1.5B, driven by a 5.1% rise in the Insights segment.
Gartner raised the 2025 EPS outlook to at least $12.65 and EBITDA to $1.58B.
Gartner, Inc. (IT - Free Report) has reported third-quarter 2025 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate.
The company’s adjusted earnings per share of $2.76 beat the Zacks Consensus Estimate by 14.5% and increased 10.4% from the year-ago quarter. Revenues of $1.5 billion beat the consensus estimate by a slight margin and improved 2.7% 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 against 7.3% growth of the Zacks S&P 500 Composite.
Revenues in the Insights segment were $1.3 billion, which increased 5.1% from the year-ago quarter on a reported basis and 3.6% on a foreign-currency-neutral basis. The gross contribution margin was 76.7%, which amounted to a gross contribution of $974 million in the third quarter of 2025.
Conferences segment revenues amounted to $75 million, which declined 1.6% from the year-ago quarter on a reported basis and 4.1% on a foreign-currency-neutral basis. The gross contribution margin was 36.6% in the reported quarter, which amounted to a gross contribution of $27 million.
Consulting revenues were $124 million, which fell 3.2% year over year on a reported basis and 4.8% on a foreign-currency-neutral basis. The gross contribution margin was 28.5%, which logged a gross contribution of $35 million.
Gartner’s Operating Performance
Adjusted EBITDA of $347 million moved up 1.9% from the year-ago quarter on a reported basis but declined marginally on a foreign-currency-neutral basis.
Balance Sheet & Cash Flow of IT
Gartner had $1.4 billion in cash and cash equivalents at the end of the third quarter compared with $2.2 billion at the end of the preceding quarter. The long-term debt was $2.5 billion, flat with the second quarter of 2025.
The operating cash flow totaled $299 million and the free cash flow utilized was $269 million in the reported quarter. Capital expenditure totaled $29 million.
Gartner’s 2025 Outlook
For 2025, the company has raised the guidance for total revenues and expects it to be at least $6.48 billion compared with the $6.46 billion provided in the preceding quarter. The guidance is lower than the Zacks Consensus Estimate of $6.49 billion.
IT has raised the guidance for adjusted earnings per share to at least $12.65 from the preceding quarter’s view of $11.75. The guidance is higher than the Zacks Consensus Estimate for earnings of $12.19.
The adjusted EBITDA guidance has been hiked to at least $1.58 billion from the $1.52 billion given in the previous quarter. The free cash flow guidance is kept at $1.15 billion.
RSG’s earnings per share (EPS) of $1.90 beat the Zacks Consensus Estimate by 7.3% and gained 5% from the year-ago quarter. Revenues of $4.2 billion missed the consensus mark by 1% but gained 3.3% year over year.
WM’s quarterly adjusted earnings of $1.98 per share missed the consensus mark by 1.5% but moved up 1% year over year. Total revenues of $6.4 billion missed the consensus mark by a slight margin but grew 14.9% from the year-ago quarter.
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Gartner Earnings Surpass Estimates in Q3, Revenues Increase Y/Y
Key Takeaways
Gartner, Inc. (IT - Free Report) has reported third-quarter 2025 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate.
The company’s adjusted earnings per share of $2.76 beat the Zacks Consensus Estimate by 14.5% and increased 10.4% from the year-ago quarter. Revenues of $1.5 billion beat the consensus estimate by a slight margin and improved 2.7% 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 against 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 5.1% from the year-ago quarter on a reported basis and 3.6% on a foreign-currency-neutral basis. The gross contribution margin was 76.7%, which amounted to a gross contribution of $974 million in the third quarter of 2025.
Conferences segment revenues amounted to $75 million, which declined 1.6% from the year-ago quarter on a reported basis and 4.1% on a foreign-currency-neutral basis. The gross contribution margin was 36.6% in the reported quarter, which amounted to a gross contribution of $27 million.
Consulting revenues were $124 million, which fell 3.2% year over year on a reported basis and 4.8% on a foreign-currency-neutral basis. The gross contribution margin was 28.5%, which logged a gross contribution of $35 million.
Gartner’s Operating Performance
Adjusted EBITDA of $347 million moved up 1.9% from the year-ago quarter on a reported basis but declined marginally on a foreign-currency-neutral basis.
Balance Sheet & Cash Flow of IT
Gartner had $1.4 billion in cash and cash equivalents at the end of the third quarter compared with $2.2 billion at the end of the preceding quarter. The long-term debt was $2.5 billion, flat with the second quarter of 2025.
The operating cash flow totaled $299 million and the free cash flow utilized was $269 million in the reported quarter. Capital expenditure totaled $29 million.
Gartner’s 2025 Outlook
For 2025, the company has raised the guidance for total revenues and expects it to be at least $6.48 billion compared with the $6.46 billion provided in the preceding quarter. The guidance is lower than the Zacks Consensus Estimate of $6.49 billion.
IT has raised the guidance for adjusted earnings per share to at least $12.65 from the preceding quarter’s view of $11.75. The guidance is higher than the Zacks Consensus Estimate for earnings of $12.19.
The adjusted EBITDA guidance has been hiked to at least $1.58 billion from the $1.52 billion given in the previous quarter. The free cash flow guidance is kept at $1.15 billion.
Gartner carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Snapshot of Peers
Republic Services, Inc. (RSG - Free Report) reported mixed third-quarter 2025 results.
RSG’s earnings per share (EPS) of $1.90 beat the Zacks Consensus Estimate by 7.3% and gained 5% from the year-ago quarter. Revenues of $4.2 billion missed the consensus mark by 1% but gained 3.3% year over year.
WM (WM - Free Report) reported dismal third-quarter 2025 results.
WM’s quarterly adjusted earnings of $1.98 per share missed the consensus mark by 1.5% but moved up 1% year over year. Total revenues of $6.4 billion missed the consensus mark by a slight margin but grew 14.9% from the year-ago quarter.