Gartner Earnings Outpace Estimates in Q4, Revenues Rise Y/Y

Core Insights - Gartner, Inc. reported fourth-quarter 2025 results with earnings and revenues exceeding the Zacks Consensus Estimate, adjusted earnings per share were $3.94, beating estimates by 12.6% but down 27.7% year-over-year, while revenues reached $1.8 billion, slightly surpassing consensus and improving 2.2% year-over-year [1][9] Revenue Breakdown - Insights segment revenues were $1.3 billion, a 3% increase year-over-year, meeting the Zacks Consensus Estimate, with a gross contribution margin of 77%, resulting in a gross contribution of $989 million [3] - Conferences segment revenues amounted to $286 million, a 14% increase year-over-year, surpassing the consensus mark of $271.4 million, with a gross contribution margin of 51%, leading to a gross contribution of $147 million [4] - Consulting revenues were $134 million, a decline of 13% year-over-year, missing the consensus estimate of $156.7 million, with a gross contribution margin of 27%, resulting in a gross contribution of $36 million [5] Operating Performance - Adjusted EBITDA for the quarter was $436 million, reflecting a 5% increase year-over-year [6] Balance Sheet & Cash Flow - At the end of Q4, Gartner had $1.7 billion in cash and cash equivalents, up from $1.4 billion in the previous quarter, with long-term debt increasing to $3 billion from $2.5 billion [7] - Operating cash flow totaled $294.5 million, while free cash flow utilized was $311 million, with capital expenditure at $23.8 million [7] 2026 Outlook - For 2026, Gartner expects revenues of $6.46 billion, lower than the Zacks Consensus Estimate of $6.7 billion, with adjusted earnings per share guidance at $12.3, below the consensus estimate of $13.63, and adjusted EBITDA guidance at $1.52 billion [8][9]