Financial Data and Key Metrics Changes - Second quarter contract value (CV) grew 5% year over year, with revenue at $1.7 billion, up 6% year over year as reported and 5% FX neutral [24][26] - Adjusted EPS was $3.53, up 10% from Q2 of last year, and free cash flow was $347 million, reflecting strong performance [27][41] - Total contribution margin was 68%, up 70 basis points from last year, and EBITDA was $443 million, up 7% as reported and 5% FX neutral [26][37] Business Line Data and Key Metrics Changes - Insights revenue grew 4% year over year as reported and 3% FX neutral, with subscription revenue growing 5% FX neutral [27] - Global Technology Sales (GTS) contract value was $3.8 billion, up 4% year over year, while Global Business Sales (GBS) contract value was $1.2 billion, up 9% year over year [31][33] - Conferences revenue increased 14% as reported and 12% FX neutral compared to 2024, with consulting revenue at $156 million, up about 9% as reported [34][35] Market Data and Key Metrics Changes - CV growth was broad-based across practices, industry sectors, company sizes, and geographic regions, with energy, banking, transportation, and healthcare leading the growth [30] - Excluding the US federal government, CV growth was about 150 basis points faster at around 6% [28] - Dollar retention year to date was around 47%, with approximately $200 million of US federal CV [31] Company Strategy and Development Direction - The company is focusing on AI as a significant opportunity and is adapting to ensure a clear path back to double-digit growth [6][22] - The research segment has been renamed to business and technology insights to better reflect the value provided to clients [21] - The company is enhancing its capabilities in cost optimization and AI, including the rollout of Ask Gartner, an AI-powered tool for clients [14][15] Management's Comments on Operating Environment and Future Outlook - Management noted headwinds from declining CEO confidence and cost-cutting measures among clients, particularly in tariff-affected industries [8][10] - The company is confident in its ability to adapt and respond to changes, particularly in the US federal government sector [11][12] - Future growth is expected to be driven by the renewal of federal contracts and stabilization in tariff-affected industries [53][54] Other Important Information - The company has increased its share repurchase program, buying back approximately $720 million year to date [25][43] - The updated guidance for 2025 includes expectations for insights revenue of at least $5.255 billion, with FX neutral growth of about 2% [47][49] - The company maintains a strong balance sheet with $2.9 billion of liquidity and low levels of leverage [43] Q&A Session Summary Question: Can you size the tariff-impacted industries and their CV representation? - The company estimates that around 35% to 40% of its CV falls into tariff-impacted industries [61] Question: What are the common client questions regarding AI and operational efficiency? - Clients seek help with mission-critical priorities, such as cybersecurity and leveraging AI, which require significant investment and effort [69][70] Question: How are new purchases among government clients performing? - New business is being written, but the contracting process is complex, leading to challenges in growth [84]