Gartner(US:IT)2025-11-04 11:02Financial 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]