Gartner(US:IT)2026-02-03 11:01Financial 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]