Financial Performance - Gartner's Q4 2025 revenue increased by 2% year over year, reaching $1.75 billion, aligning with analyst expectations [2] - Adjusted earnings for Q4 2025 fell by 28% to $3.94 per diluted share, surpassing the Street's forecast of $3.51 per share [2] Future Projections - Management anticipates 2026 sales of at least $6.46 billion, which is 0.6% lower than the full-year 2025 results [3] - Adjusted earnings are projected at $12.30 per share for 2026, representing a 6.6% decline from the $13.17 per share earned in 2025 [3] - Analyst consensus estimates for full-year 2026 earnings are approximately $13.48 per share on revenues near $6.7 billion [3] Stock Performance and Valuation - Gartner's stock has decreased by 71% over the past 52 weeks, trading at low valuation ratios of 13.8 times trailing earnings and 9.3 times free cash flow [5] - The percentage of Gartner shares on loan to short-sellers is increasing, indicating a rising trend among short-sellers despite the stock's decline [5] Market Conditions - The demand for business advice is challenging in the current economic climate, with clients having access to artificial intelligence tools [6] - Gartner needs to demonstrate its value through enhanced services amidst macroeconomic challenges, which may require time to adjust its marketing strategy [6]

Key Takeaways IT posted Q4 EPS of $3.94 and revenues of $1.8B, topping estimates despite a 27.7% y/y EPS decline.Gartner saw Insights revenues rise 3% to $1.3B and Conferences jump 14%, while Consulting fell 13%.IT sees FY26 revenues at $6.46B and EPS at $12.3, both below the consensus estimate, with EBITDA at $1.52B.Gartner, Inc. (IT) has reported fourth-quarter 2025 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate.The company’s adjusted earnings per share of $3.94 beat the Zac ...

Gartner (NYSE:IT) Q4 2025 Earnings call February 03, 2026 08:00 AM ET Company ParticipantsCraig Safian - CFODavid Cohen - SVP of Investor RelationsGene Hall - Chairman and CEOConference Call ParticipantsAndrew Nicholas - VP, Senior Equity Research AnalystAshish Sabadra - AnalystFaiza Alwy - Equity Research AnalystJason Haas - Equity Research AnalystJeff Meuler - Managing Director and Senior Research AnalystJeff Silber - AnalystJoshua Chan - Equity Research AnalystManav Patnaik - AnalystScott Wurtzel - Analy ...

Financial Data and Key Metrics Changes - Fourth quarter revenue was $1.8 billion, up 2% year-over-year as reported and unchanged FX neutral [16] - Full year revenue was $6.5 billion, up 4% as reported and 3% FX neutral [16] - Fourth quarter EBITDA was $436 million, up 5% as reported and 1% FX neutral [16] - Adjusted EPS for the fourth quarter was $3.94, and for the full year, it was $13.17 [27] - Free cash flow for the fourth quarter was $271 million, and for the full year, it was $1.2 billion [28] Business Line Data and Key Metrics Changes - Insights segment revenue in the fourth quarter grew 3% year-over-year as reported and 1% FX neutral [17] - Fourth quarter Insights contribution margin was 77%, up 59 basis points versus last year [17] - Global Technology Sales contract value was $3.9 billion at the end of the fourth quarter, about flat compared with the prior year [20] - Global Business Sales contract value was $1.2 billion at the end of the fourth quarter, up 3% year-over-year [21] - Consulting revenue for the fourth quarter was $134 million, compared with $153 million in the year-ago period [23] Market Data and Key Metrics Changes - Contract value outside the U.S. Federal Government grew 4% year-over-year [18] - All but two of the top ten countries grew in 2025, with one growing double digits [20] - Wallet retention for Global Technology Sales was 96% for the quarter [20] - Wallet retention for Global Business Sales was 99% for the quarter [21] Company Strategy and Development Direction - The company is focusing on transforming business and technology insights along four dimensions: impact, volume, timeliness, and user experience [12] - The transformation aims to enhance client engagement and retention, which are critical for growth [62] - The company plans to continue expanding its AI insights, having documented over 1,000 unique use cases and conducted more than 200,000 client conversations on AI [7][10] - The divestiture of the digital markets business allows the company to concentrate on its core insights business [15][66] Management's Comments on Operating Environment and Future Outlook - The management noted that external market forces have led to increased scrutiny and extended buying cycles [4] - The company expects contract value to accelerate throughout 2026, driven by operational changes and reduced headwinds from the federal government [41][50] - Management emphasized the importance of client engagement, stating that higher engagement leads to better renewal rates [44] - The company is prepared for ongoing disruption and chaos in the market, focusing on enhancing its core offerings [61] Other Important Information - The company repurchased more than $2 billion of its stock in 2025 [4] - The expected free cash flow generation for 2026 is $1.135 billion or more, reflecting a conversion from GAAP net income of 140% [37] - The company has a strong balance sheet with $2.7 billion of liquidity and low levels of leverage [30] Q&A Session Questions and Answers Question: Expected contract value acceleration - The company expects contract value to accelerate throughout the year, not just due to lesser headwinds in the federal government but also from operational changes made in the second half of last year [41] Question: Leading indicators and renewal rates - Leading indicators show that client engagement is rising, which is expected to positively impact renewal rates over the next 12 to 24 months [44] Question: CV growth expectations for 2026 - The company expects contract value growth to accelerate over the course of 2026, with various factors supporting this growth [50] Question: Quarterly phasing of CV growth - The company anticipates a consistent quarterly phasing of contract value growth, with more renewals expected in Q1 and Q4 [55] Question: Strategic actions and divestitures - The divestiture of the digital markets business was driven by a focus on core insights and the need to adapt to a changing environment [66]

Financial Data and Key Metrics Changes - Fourth quarter revenue was $1.8 billion, up 2% year-over-year as reported and unchanged FX neutral [17] - Full year revenue was $6.5 billion, up 4% as reported and 3% FX neutral [17] - Fourth quarter EBITDA was $436 million, up 5% as reported and 1% FX neutral [17] - Adjusted EPS for the fourth quarter was $3.94, and for the full year, it was $13.17 [18][26] - Free cash flow for the fourth quarter was $271 million, compared to $311 million in Q4 2024 [27] - Full year free cash flow was $1.2 billion, with a strong ROIC at around 24% [18][28] Business Line Data and Key Metrics Changes - Insights segment revenue grew 3% year-over-year in Q4, and 5% for the full year [18] - Fourth quarter Insights contribution margin was 77%, up 59 basis points from last year [18] - Global Technology Sales contract value was $3.9 billion, flat compared to the prior year, with CV outside the U.S. federal business growing 4% [20] - Global Business Sales contract value was $1.2 billion, up 3% year-over-year, with wallet retention for GBS at 99% for the quarter [21] Market Data and Key Metrics Changes - Contract value outside the U.S. Federal Government grew 4% year-over-year [19] - All but two of the top ten countries grew in 2025, with one growing double digits [20] - Conferences revenue for Q4 was $286 million, with a contribution margin of 51% [23] Company Strategy and Development Direction - The company is focusing on transforming business and technology insights along four dimensions: impact, volume, timeliness, and user experience [12][38] - A definitive agreement was made to sell the digital markets business to concentrate on core insights offerings [16][28] - The company aims to enhance client engagement to drive retention and growth, particularly through the transformation program [62] Management Comments on Operating Environment and Future Outlook - The external environment has become more volatile, leading to longer buying cycles and increased scrutiny from clients [4][5] - Management expects contract value to accelerate throughout 2026, driven by operational changes and reduced federal government headwinds [41][50] - The company anticipates continued strong free cash flow generation and shareholder value enhancement through share repurchases [15][68] Other Important Information - The company repurchased over $2 billion of stock in 2025, enhancing shareholder value [4][13] - The company has a strong balance sheet with $2.7 billion of liquidity and low levels of leverage [29] Q&A Session Summary Question: Expected contract value acceleration in 2026 - Management expects contract value to accelerate throughout the year, not just due to reduced federal government headwinds but also from operational changes [41] Question: Leading indicators and renewal rates - Leading indicators show increased client engagement, particularly through improved conference scores and the impact of Ask Gartner [42][46] Question: CV growth expectations for 2026 - Management expects CV growth to accelerate, with a focus on both federal and non-federal segments [50] Question: Quarterly phasing of CV growth - The company anticipates a consistent quarterly phasing of CV growth, with more renewals expected in Q1 and Q4 [55] Question: Strategic actions and divestitures - The divestiture of the digital markets business was driven by a focus on core insights and enhancing shareholder value [62][68] Question: Institutionalizing processes for insights collection - The company has developed sophisticated systems to collect and analyze insights from client interactions, enhancing the research process [73][75] Question: Client feedback on AI - AI is a significant topic in client discussions, but there is no substantial concern about AI substituting Gartner's services [79][80]

分组1 - Gartner reported quarterly earnings of $3.94 per share, exceeding the Zacks Consensus Estimate of $3.5 per share, but down from $5.45 per share a year ago, representing an earnings surprise of +12.63% [1] - The company posted revenues of $1.75 billion for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 0.49%, and up from $1.72 billion year-over-year [2] - Gartner has surpassed consensus EPS estimates four times over the last four quarters and topped consensus revenue estimates three times during the same period [2] 分组2 - Gartner shares have declined approximately 19.8% since the beginning of the year, while the S&P 500 has gained 1.9% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the upcoming quarter is $3.04 on revenues of $1.56 billion, and for the current fiscal year, it is $13.63 on revenues of $6.7 billion [7] 分组3 - The Zacks Industry Rank indicates that the Consulting Services industry is currently in the top 40% of over 250 Zacks industries, suggesting that companies in the top 50% outperform those in the bottom 50% by more than 2 to 1 [8] - The estimate revisions trend for Gartner was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6]

Core Insights - Gartner forecasts annual revenue and earnings below Wall Street expectations due to reduced enterprise spending impacting demand for consulting services [1] Group 1 - The company anticipates a decline in revenue and earnings, indicating a challenging market environment [1] - Enterprises are scaling back their spending, which is a significant factor affecting demand for Gartner's consulting services [1]

Fourth Quarter 2025 Results February 3, 2026 © 2026 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates. This presentation, including all supporting materials, is proprietary to Gartner, Inc. and/or its affiliates and is for the sole internal use of the intended recipients. Because this presentation may contain information that is confidential, proprietary or otherwise legally protected, it may not be further copied, distributed or p ...

Financial Performance - Fourth quarter revenues were $1.8 billion, representing a 2% increase as reported and unchanged FX neutral[5] - Net income for the fourth quarter was $242 million, a decrease of 39% year-over-year[5] - Adjusted EBITDA for the fourth quarter was $436 million, up 5% as reported and 1% FX neutral[5] - Full year revenues reached $6.5 billion, a 4% increase as reported and 3% FX neutral[5] - GAAP net income for Q4 2025 was $242 million, down from $399 million in Q4 2024, resulting in a diluted EPS of $3.36 compared to $5.11[28] - Total revenues for Q4 2025 reached $1,752.6 million, a slight increase from $1,715.1 million in Q4 2024, driven by growth in the Insights segment[28] - Adjusted net income for Q4 2025 was $284 million, with an adjusted EPS of $3.94, compared to $425 million and $5.45 in Q4 2024[24] - Operating income for Q4 2025 was $334.2 million, up from $317.8 million in Q4 2024, indicating improved operational efficiency[28] Share Repurchase and Stock Information - The company repurchased $2 billion of its stock in 2025, reducing the outstanding share count by 8% year-over-year[5] - The Board of Directors increased the share repurchase authorization by $500 million in January 2026[5] Contract Value and Sales Performance - Global Technology Sales Contract Value (GTS CV) was $3.9 billion, flat year-over-year FX neutral[9] - Global Business Sales Contract Value (GBS CV) was $1.2 billion, reflecting a 3% increase year-over-year FX neutral[9] - The company expects contract value to accelerate throughout 2026[3] Segment Performance - Segment revenues for Insights were $1.283 billion, a 3% increase, while Consulting revenues decreased by 13% to $134 million[7] Cash Flow and Expenses - Free cash flow for Q4 2025 was $311 million, an increase from $271 million in Q4 2024, while GAAP cash provided by operating activities was $295 million[25] - The company reported a total of $1,290 million in GAAP cash provided by operating activities for the year ended December 31, 2025, down from $1,485 million in 2024[25] - The cost of services and product development for Q4 2025 was $572.6 million, slightly lower than $574.9 million in Q4 2024[28] - The company incurred $78 million in workforce reduction expenses for the year ended December 31, 2025, compared to $35 million in 2024[24] - The effective tax rate on adjustments for Q4 2025 was approximately 3%, compared to 32% in Q4 2024[24] - The company’s total costs and expenses for Q4 2025 were $1,418.4 million, compared to $1,397.3 million in Q4 2024[28]

Core Insights - Gartner, Inc. reported fourth quarter results for 2025 that exceeded expectations, with a revenue of $1.753 billion, a 2% increase from $1.715 billion in 2024 [4][21] - The company repurchased $2 billion of its stock in 2025 and completed its first investment-grade bond issuance, indicating a strategic move to increase leverage [2] - The company anticipates an acceleration in contract value (CV) throughout 2026 [2] Financial Performance - **Revenues**: $1,753 million in Q4 2025, up 2% from $1,715 million in Q4 2024 [4][21] - **Net Income**: Decreased to $242 million in Q4 2025 from $399 million in Q4 2024, a decline of 39% [4][21] - **Diluted EPS**: Dropped to $3.36 from $5.11, a decrease of 34% [4][21] - **Operating Cash Flow**: Fell to $295 million, down 12% from $335 million [4][21] - **Adjusted EBITDA**: Increased to $436 million, a 5% rise from $417 million [4][21] - **Free Cash Flow**: Decreased to $271 million from $311 million, a 13% decline [4][21] Segment Results - **Insights Revenue**: $1,283 million, a 3% increase [5] - **Conferences Revenue**: $286 million, a 14% increase [5] - **Consulting Revenue**: $134 million, a 13% decrease [5] - **Other Revenue**: $50 million, a 22% decrease [5] Contract Value Highlights - **Global Technology Sales Contract Value (GTS CV)**: Remained flat at $3.9 billion year-over-year [6] - **Global Business Sales Contract Value (GBS CV)**: Increased by 3% year-over-year to $1.2 billion [6]