GARTNER INC (IT) Earnings History

GARTNER INC - Q4 2025 EarningsBeat

Filed at: Feb 3, 2026, 6:01 AM EST|Read from source

EXECUTIVE SUMMARY

Gartner reported fourth quarter results that exceeded expectations, driven by solid performance in its Conferences segment and a slight acceleration in FX-neutral growth for Global Business Sales Contract Value. Despite a year-over-year decline in GAAP net income and diluted EPS, the company demonstrated resilience with growth in adjusted EBITDA and free cash flow, supported by ongoing share repurchases and strategic initiatives like the divestiture of the Digital Markets business.

POSITIVE HIGHLIGHTS

  • •

    Fourth quarter financial results were ahead of expectations.

    positive
  • •

    Adjusted EBITDA increased 5% as reported and 1% FX neutral to $436 million.

    positive
  • •

    Global Business Sales Contract Value grew 3% YoY FX Neutral.

    positive
  • •

    Board of Directors increased the share repurchase authorization by $500 million.

    positive
  • •

    Repurchased $2.0 billion of Gartner stock in 2025, resulting in an 8% reduction in outstanding share count YoY.

    positive

CONCERNS & RISKS

  • •

    GAAP Net income decreased 39% to $242 million compared to $399 million in the prior year.

    negative
  • •

    Diluted EPS decreased 34% to $3.36 compared to $5.11 in the prior year.

    negative
  • •

    Operating cash flow decreased 12% to $295 million compared to $335 million in the prior year.

    negative
  • •

    Free cash flow decreased 13% to $271 million compared to $311 million in the prior year.

    negative
  • •

    Revenues were unchanged FX neutral at $1.8 billion, with the Consulting segment revenues down 13% YoY and Other segment revenues down 22% YoY.

    attention
  • •

    Goodwill and other asset impairments of $150 million related to Digital Markets in Q3 2025.

    attention

FINANCIAL METRICS

Revenue
Quarterly
$1.75B
N/A
Net Income
Quarterly
$242.10M
-39.2%
Prior year: $398.60M
Annual (YTD)
$729.00M
N/A
Prior year: $1.25B
EPS (Diluted)
Quarterly
$3.36
-34.2%
Prior year: $5.11
Operating Income
Quarterly
$334.20M
N/A
EPS (Basic)
Quarterly
N/A
N/A

MARGIN ANALYSIS

Operating Margin
Current Quarter
19.1%
Prior Year
18.5%
YoY Change
+54 bps
Net Margin
Current Quarter
13.8%
Prior Year
23.2%
YoY Change
-943 bps

Margin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.

REVENUE BY SEGMENT — Q4 2025 2025

VISUAL OVERVIEW

|
Insights
0.0%
N/A
CC: +1.0%
Conferences
0.0%
N/A
CC: +11.0%
Consulting
0.0%
N/A
CC: -15.0%
Other
0.0%
N/A
CC: -22.0%

DETAILED BREAKDOWN

|
SegmentCurrentPrior YrYoY% TotalCC
Insights
N/A———+1.0%
Conferences
N/A———+11.0%
Consulting
N/A———-15.0%
Other
N/A———-22.0%
Total Revenue$0.00M——100.0%—

Segment performance shows business unit health and growth drivers. Constant currency (CC) removes FX impact for like-for-like comparison.

SPECIAL ITEMS & ADJUSTMENTS

Q4 2025
Workforce reduction expenses and other non-recurring items
Includes amortization and write-off of deferred financing fees.
+$23M
$0.32 per share
Q4 2025
Amortization of acquired intangibles
Non-cash charges from acquired intangibles.
+$20M
$0.28 per share
FY 2025
Goodwill and other asset impairments
Includes $150 million of goodwill impairment related to Digital Markets in Q3 2025.
+$155M
$2.05 per share
FY 2025
Workforce reduction expenses and other non-recurring items
+$78M
$1.03 per share
FY 2025
Amortization of acquired intangibles
Non-cash charges from acquired intangibles.
+$82M
$1.09 per share
Total Impact
+$358M$4.77 per share

Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.

MANAGEMENT COMMENTARY

Fourth quarter financial results were ahead of expectations.

— GARTNER INC, Q4 2025 2025 Earnings Call

We repurchased $2 billion of Gartner stock in 2025.

— GARTNER INC, Q4 2025 2025 Earnings Call

Over the past few months, we increased our leverage through the successful completion of our first investment-grade bond issuance, we entered into a definitive agreement to divest the Digital Markets business, and the Board appointed two new directors who bring unique and valuable skills.

— GARTNER INC, Q4 2025 2025 Earnings Call

Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.

OPERATIONAL METRICS

Global Business Sales Contract Value
1200.0M
+3.0% YoY
USD
Global Technology Sales Contract Value
3900.0M
0.0% YoY
USD

Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.