Core Insights - Gartner identifies ten strategic technology trends that organizations need to focus on by 2026, emphasizing the unprecedented speed of innovation and transformation in the current year [1][3]. Group 1: AI Supercomputing Platforms - AI supercomputing platforms integrate various computing resources to manage complex workloads, enhancing performance and innovation potential [6]. - By 2028, over 40% of leading companies will apply hybrid computing paradigms to critical business processes, a significant increase from the current 8% [8]. Group 2: Multi-Agent Systems - Multi-agent systems consist of multiple AI agents that interact to achieve complex individual or collective goals, enhancing automation and collaboration [10]. Group 3: Domain-Specific Language Models (DSLM) - DSLMs are tailored AI models trained on specific industry data, providing higher accuracy and compliance for specialized tasks compared to general models [11]. - By 2028, over half of generative AI models used by enterprises will be domain-specific [13]. Group 4: AI Security Platforms - AI security platforms offer unified protection mechanisms for AI applications, helping organizations monitor activities and enforce usage policies [16]. - By 2028, over 50% of enterprises will utilize AI security platforms to safeguard their AI investments [16]. Group 5: AI Native Development Platforms - AI native development platforms enable rapid software development through generative AI, allowing non-technical experts to create applications [19]. - By 2030, 80% of enterprises will transform large software engineering teams into smaller, agile teams empowered by AI [19]. Group 6: Confidential Computing - Confidential computing protects sensitive data by isolating workloads in trusted execution environments, crucial for regulated industries [20]. - By 2029, over 75% of business processes handled in untrusted infrastructures will be secured through confidential computing [22]. Group 7: Physical AI - Physical AI empowers machines and devices with perception, decision-making, and action capabilities, providing significant benefits in automation and safety [23]. Group 8: Proactive Cybersecurity - Proactive cybersecurity is becoming a trend as organizations shift from passive defense to active protection, with AI-driven solutions playing a key role [26]. Group 9: Digital Traceability - Digital traceability is essential for verifying the source and integrity of software and data, especially as reliance on third-party software increases [30]. Group 10: Geopolitical Repatriation - Geopolitical repatriation involves moving data and applications to local platforms to mitigate geopolitical risks, a trend expected to grow significantly by 2030 [33].

Core Insights - Gartner, Inc. is a leading research and advisory company providing insights and tools for various sectors including IT, finance, HR, and customer service [1] - The company demonstrates effective capital management with a Return on Invested Capital (ROIC) of 24.87% and a Weighted Average Cost of Capital (WACC) of 8.07% [2][6] Capital Efficiency Comparison - Gartner's ROIC to WACC ratio is 3.08, indicating strong capital efficiency compared to its cost of capital [2] - CDW Corporation has a ROIC of 19.21% and a WACC of 7.30%, resulting in a ROIC to WACC ratio of 2.63, reflecting efficient capital use [3] - Mettler-Toledo International Inc. leads with a ROIC of 37.77% and a WACC of 9.74%, achieving the highest ROIC to WACC ratio of 3.88 among peers, indicating exceptional capital utilization [4] - Jack Henry & Associates has a ROIC to WACC ratio of 2.34, suggesting efficient capital use, while ANSYS, Inc. has a lower ratio of 0.88, indicating its returns do not cover its cost of capital [5][6]

Financial Data and Key Metrics Changes - Third-quarter revenue was $1.5 billion, up 3% year-over-year as reported and 1% FX neutral [15] - Adjusted EPS was $2.76, up 10% from Q3 of last year [23] - Free cash flow was $269 million, compared to $265 million in Q3 2024 [24] - EBITDA was $347 million, up 2% as reported, with FX contributing almost 3 percentage points [22] Business Line Data and Key Metrics Changes - Insights revenue grew 5% year-over-year as reported and 4% FX neutral [16] - Global Technology Sales (GTS) contract value was $3.8 billion, up 2% year-over-year [18] - Global Business Sales (GBS) contract value was $1.2 billion, up 7% year-over-year [19] - Consulting revenue was $124 million, compared to $128 million in the year-ago period [20] Market Data and Key Metrics Changes - Contract value grew 3% year-over-year, with a 6% growth excluding the U.S. federal government [13] - Client retention rates improved from Q2 to Q3, indicating a positive trend in client engagement [36] - New business in the quarter was down about 4% year-over-year, excluding U.S. federal contracts [17] Company Strategy and Development Direction - The company is focused on leveraging AI to enhance productivity and effectiveness internally [12] - There is a clear path back to long-term, sustained double-digit growth over the medium term [12] - The company plans to continue repurchasing stock to create value for shareholders [25] Management's Comments on Operating Environment and Future Outlook - The macroeconomic environment remains dynamic, but the company has made operational adaptations that are yielding results [5] - The selling environment has improved modestly, with increased engagement and retention rates [33][36] - The company expects to accelerate contract value growth in 2026, aiming for high single-digit growth rates [60][62] Other Important Information - The company repurchased more than $1 billion of stock in the quarter, reducing share count by 6% year-over-year [5] - The insights segment remains the largest and most profitable operating segment, with almost 100% recurring subscription revenue [15] Q&A Session Summary Question: Can you comment on upselling and downselling trends? - The selling environment has improved modestly, with new sales to new enterprises performing well, but upselling existing enterprises has faced challenges [33] Question: How are tariff-impacted industries performing? - Non-tariff-affected industries continue to perform about 200 basis points faster in contract value growth compared to tariff-affected industries [39] Question: What drove the improvement in renewal rates? - The improvement is attributed to operational adaptations and reduced uncertainty in certain geographies, leading to better client decision-making [45] Question: What are your expectations for sales headcount growth in 2026? - The expectation is to grow headcount three to four points slower than expected contract value growth [54] Question: Can you elaborate on the pricing environment? - The bulk of the price increase globally went into effect on November 1st, with a normal increase of around 3-4% [99]

Financial Data and Key Metrics Changes - Gartner's third-quarter revenue was $1.5 billion, up 3% year over year as reported and 1% FX neutral [12] - Adjusted EPS was $2.76, up 10% from Q3 of last year [20] - Free cash flow was $269 million, compared to $265 million in Q3 2024 [21] - EBITDA was $347 million, up 2% as reported, with FX contributing almost 3 percentage points [19] Business Line Data and Key Metrics Changes - Insights revenue grew 5% year over year as reported and 4% FX neutral, with a contribution margin of 77% [13] - Global Technology Sales (GTS) contract value was $3.8 billion, up 2% year over year, with wallet retention at 98% [16] - Global Business Sales (GBS) contract value was $1.2 billion, up 7% year over year, with wallet retention at 102% [17] - Consulting revenue was $124 million, compared to $128 million in the year-ago period [18] Market Data and Key Metrics Changes - Contract value (CV) grew 3% year over year, with a 6% growth excluding the U.S. federal government [11] - New business in GTS was down 12% compared to last year, while GBS new business was down 10% [16][17] - The amount of content published per analyst increased by 31% year over year [7] Company Strategy and Development Direction - Gartner is focusing on AI as a key growth area, helping clients determine the best AI tools and applications [4][5] - The company is adapting its operational strategies to improve client engagement and retention [10] - There is a clear path back to long-term, sustained double-digit growth over the medium term [10] Management's Comments on Operating Environment and Future Outlook - The macroeconomic environment remains dynamic, but Gartner's Q3 results were ahead of expectations [4] - Management noted improvements in client engagement and retention rates, which are positive indicators for future growth [30] - The company expects to see a re-acceleration in contract value growth in 2026, driven by improved selling conditions and adaptations made [26][58] Other Important Information - Gartner repurchased $1.1 billion of stock during the third quarter, reducing share count by 6% year over year [4][23] - The company has a strong balance sheet with about $1.4 billion in cash and a debt balance of approximately $2.5 billion [22][23] Q&A Session Summary Question: Comments on upselling and downselling trends - Management noted that the selling environment has improved modestly, with upselling existing enterprises being the most affected area [29] Question: Update on tariff-impacted industries - Non-tariff-affected industries continue to perform about 200 basis points faster than tariff-affected industries [31] Question: Improvement in renewal rates - The improvement is attributed to operational adaptations and reduced uncertainty in certain geographies [32] Question: Expectations for sales headcount growth in 2026 - The expectation is to grow headcount three to four points slower than expected contract value growth [36] Question: Pricing environment and increases - A normal price increase of around 3-4% went into effect on November 1, with minimal pushback expected [59]

Group 1 - The article does not provide any specific content related to a company or industry [1]

Core Insights - Gartner reported quarterly earnings of $2.76 per share, exceeding the Zacks Consensus Estimate of $2.41 per share, and showing an increase from $2.50 per share a year ago, resulting in an earnings surprise of +14.52% [1] - The company achieved revenues of $1.52 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 0.35% and up from $1.48 billion year-over-year [2] - Gartner's stock has underperformed, losing approximately 49.2% since the beginning of the year, while the S&P 500 has gained 16.5% [3] Earnings Outlook - The future performance of Gartner's stock will largely depend on management's commentary during the earnings call and the revisions of earnings estimates [3][4] - The current consensus EPS estimate for the upcoming quarter is $3.26, with expected revenues of $1.75 billion, and for the current fiscal year, the EPS estimate is $12.19 on revenues of $6.49 billion [7] Industry Context - The Consulting Services industry, to which Gartner belongs, is currently ranked in the top 26% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked using tools like the Zacks Rank [5][6]

Q3 2025 Financial Performance - Global Contract Value (CV) increased by 30% to $50 billion[13] - Consolidated Revenues grew by 27% to $15 billion[13] Foreign Exchange (FX) neutral growth was 12%[13] Contribution Margin was 689%[13] - Insights Revenues increased by 51% to $13 billion[13] FX Neutral growth was 36%[13] Contribution Margin reached 767%[13] - Conference Revenues decreased by 16% to $75 million[13] FX Neutral decrease was 41%[13] Contribution Margin was 366%[13] - Consulting Revenues decreased by 32% to $124 million[13] FX Neutral decrease was 48%[13] Contribution Margin was 285%[13] - Adjusted EBITDA increased by 19% to $347 million[13] FX Neutral growth was -08%[13] Adjusted EBITDA Margin was 228%[13] - Adjusted EPS grew by 104% to $276[13] - Free Cash Flow was $269 million[13] Updated 2025 Guidance - Consolidated Revenues are projected to be at least $6475 billion[13] - Adjusted EBITDA is expected to be at least $1575 billion[13] - Adjusted EPS is projected to be at least $1265[13] - Free Cash Flow is expected to be at least $1145 billion[13] Capital Allocation - Share repurchases amounted to $11 billion[13] - Approximately $13 billion remains authorized for repurchase as of September 30, 2025[39]

Financial Performance - Total revenues for the third quarter of 2025 were $1.5 billion, a 3% increase compared to the third quarter of 2024[146]. - Insights revenue increased by 5% year-over-year, totaling $1.27 billion, while Conferences and Consulting revenues decreased by 2% and 3%, respectively[146][151]. - Net income for the third quarter of 2025 was $35.4 million, a significant decrease of 91% from $415.0 million in the same period of 2024, primarily due to a $150.0 million goodwill impairment loss[147][151]. - Total revenues for the nine months ended September 30, 2025, were $4.7 billion, an increase of $0.2 billion, or 4%, compared to the same period in 2024[154]. - Operating income for the nine months ended September 30, 2025, was $691.5 million, a decrease of $147.0 million, or 18%, compared to $838.5 million in 2024, primarily due to a goodwill impairment loss of $150.0 million[160]. - Net income for the nine months ended September 30, 2025, was $487.1 million, a decrease of $368.1 million, or 43%, compared to $855.1 million in 2024[165]. Expenses and Costs - Selling, general and administrative expenses increased by 7% to $762.6 million in the third quarter of 2025[151]. - Selling, general and administrative (SG&A) expenses for the nine months ended September 30, 2025, were $2.3 billion, an increase of $156.1 million, or 7%, compared to the same period in 2024[156]. - Cost of services and product development for the nine months ended September 30, 2025, was $1.5 billion, an increase of $32.9 million, or 2%, compared to the same period in 2024[155]. Goodwill Impairment - A goodwill impairment loss of $150.0 million was recognized in the Digital Markets reporting unit due to ongoing market weakness and internal organizational changes[142]. - Goodwill impairment of $150.0 million was recognized during the three months ended September 30, 2025, in the Digital Markets reporting unit[159]. Cash Flow and Financing - Cash provided by operating activities was $1.0 billion for the nine months ended September 30, 2025, compared to $1.1 billion for the same period in 2024[147]. - Cash provided by operating activities was $995.8 million for the nine months ended September 30, 2025, down from $1.1 billion in 2024[189]. - Cash used in financing activities increased significantly to $1.5 billion for the nine months ended September 30, 2025, compared to $615.6 million in 2024[191]. - The company had $1.4 billion in cash and cash equivalents and approximately $0.7 billion of available borrowing capacity as of September 30, 2025[183]. Employee and Client Metrics - The company had a total of 20,854 employees globally as of September 30, 2025, reflecting a 0.6% decrease from the previous year[138]. - Client retention for Global Technology Sales improved by 1 percentage point to 84% for the three months ended September 30, 2025, compared to the same period in 2024[169]. - GTS client retention was 84% as of September 30, 2025, compared to 83% in 2024, while GBS client retention remained stable at 87%[173]. - The number of quota-bearing sales associates increased by 2% compared to September 30, 2024, reflecting growth in the sales force[156]. Market and Regulatory Environment - The company continues to monitor the unpredictable geopolitical environment and its potential impact on business operations and financial performance[140]. - The One Big Beautiful Bill Act (OBBBA) enacted in July 2025 did not have a material impact on the company's consolidated financial results for the current period[141]. Debt and Interest Rate Exposure - As of September 30, 2025, the Company had $2.5 billion of principal amount of debt outstanding[193]. - Approximately $274.4 million of the total debt was based on a floating base rate of interest, exposing the Company to interest rate fluctuations[196]. - A 100 basis point change in interest rates would increase or decrease the Company's interest expense by approximately $2.7 million annually[196]. Foreign Currency Exposure - The Company had $1.4 billion of cash and cash equivalents as of September 30, 2025, with a significant portion in foreign currencies[198]. - A 10% change in foreign currency exchange rates could result in an increase or decrease of approximately $112.8 million in cash and cash equivalents[198]. - The Company is exposed to both foreign currency translation and transaction risk due to significant revenues derived from international sales[197]. - The translation of foreign currency revenues and expenses has historically not had a material impact on consolidated earnings[198].

Financial Performance - Revenues for Q3 2025 were $1,524 million, up 2.7% as reported and 1.2% FX neutral compared to Q3 2024[5] - Net income decreased to $35 million, down 91.5% year-over-year, with diluted EPS at $0.47, a decline of 91.2%[6] - Adjusted EBITDA was $347 million, an increase of 1.9% year-over-year, while adjusted EPS rose to $2.76, up 10.4%[6] - Total revenues for the three months ended September 30, 2025, were $1,524.1 million, an increase from $1,484.3 million in 2024, representing a growth of 2.7%[29] - Adjusted net income for Q3 2025 was $207 million, compared to $195 million in Q3 2024, reflecting an increase of 6.2%[23] - GAAP net income for Q3 2025 was $35 million, significantly lower than $415 million in Q3 2024, a decline of 91.6%[29] Cash Flow and Expenses - Operating cash flow fell to $299 million, down 49.4%, and free cash flow decreased to $269 million, down 52.3%[6] - Free cash flow for Q3 2025 was $269 million, down from $565 million in Q3 2024, indicating a decrease of 52.4%[27] - The cost of services and product development for Q3 2025 was $474.2 million, slightly down from $475.3 million in Q3 2024[29] - Selling, general and administrative expenses increased to $762.6 million in Q3 2025 from $711.7 million in Q3 2024, a rise of 7.2%[29] Share Repurchase and Authorizations - The company repurchased 4.0 million common shares for $1.1 billion, marking a record for a single quarter[6] - The Board of Directors increased the share repurchase authorization by $1 billion in September 2025[6] Contract Value and Future Outlook - Contract value reached $5.0 billion, representing a 3.0% year-over-year increase on a foreign exchange neutral basis[1] - Global Technology Sales Contract Value (GTS CV) was $3.8 billion, up 1.7% year-over-year FX neutral, while Global Business Sales Contract Value (GBS CV) was $1.2 billion, up 7.1% FX neutral[10] - The company expects contract value to accelerate in 2026, indicating positive future growth prospects[4] Impairments and Tax Rates - The company reported a goodwill impairment of $150 million in Q3 2025, with no such impairment recorded in the same period of 2024[29] - The effective tax rate on adjustments was approximately 14.2% for Q3 2025, compared to 16.9% for Q3 2024[25] Other Developments - The company completed the Beta launch of AskGartner, an AI-powered tool aimed at enhancing user experience[6] - The company did not recognize any gain on event cancellation insurance claims in Q3 2025, contrasting with a gain of $300 million in Q3 2024[29]

Core Insights - Orchid Security has been recognized by Gartner as a Cool Vendor in the 2025 Gartner Cool Vendors in Identity-First Security report, highlighting its innovative approach to identity and access management (IAM) [1][5] - The company’s identity-first security strategy emphasizes the importance of identity at the center of security architecture, especially as traditional security models become inadequate due to digital transformation and cloud migration [2][3] - Orchid's platform utilizes AI-driven insights and orchestration to provide continuous assessment and remediation of identity-related risks, enabling organizations to manage both managed and unmanaged identities effectively [3][4] Company Overview - Orchid Security offers the industry's first Identity Control Plane, transforming IAM complexity into clarity, compliance, and control [7] - The platform continuously discovers enterprise applications and analyzes their authentication and authorization flows, significantly reducing the time and effort required for onboarding into governance systems [7] - Backed by Intel Capital and Team8, Orchid is trusted by Fortune 500 and global 2000 organizations, helping them reduce cybersecurity risks and meet compliance requirements at scale [4][7] Industry Context - The shift towards identity-first security is driven by the inadequacy of traditional network boundary-based security models in the face of evolving digital landscapes [2] - AI and large language models are increasingly being integrated into IAM to identify misconfigurations and enhance security posture through continuous analysis [2] - Organizations are facing challenges with "identity dark matter," which refers to unmanaged and unseen identities, and Orchid's solutions aim to expose and remediate these hidden risks [4][7]