Financial Data and Key Metrics Changes - Fourth quarter revenue was $1.8 billion, up 2% year-over-year as reported and unchanged FX neutral [17] - Full year revenue was $6.5 billion, up 4% as reported and 3% FX neutral [17] - Fourth quarter EBITDA was $436 million, up 5% as reported and 1% FX neutral [17] - Full year EBITDA was $1.6 billion, with EBITDA margins at 24.8%, well above initial guidance [18] - Adjusted EPS for the fourth quarter was $3.94, and for the full year, it was $13.17 [28] - Free cash flow for the fourth quarter was $271 million, and for the full year, it was $1.2 billion [29] Business Line Data and Key Metrics Changes - Insights segment revenue grew 3% year-over-year in the fourth quarter and 5% for the full year [18] - Fourth quarter Insights contribution margin was 77%, up 59 basis points from last year [18] - Global Technology Sales contract value was $3.9 billion, flat compared to the prior year, with CV outside the U.S. federal business growing 4% [21] - Global Business Sales contract value was $1.2 billion, up 3% year-over-year, with wallet retention for GBS at 99% for the quarter [22] Market Data and Key Metrics Changes - Contract value outside the U.S. federal government grew 4% year-over-year [19] - All but two of the top ten countries grew in 2025, with one growing double digits [21] - New business in the fourth quarter exceeded $400 million [21] Company Strategy and Development Direction - The company is transforming Business and Technology Insights along four dimensions: impact, volume, timeliness, and user experience [14][15] - Focus on increasing client engagement to drive retention and growth [6][14] - The divestiture of the Digital Markets business allows for a more concentrated focus on core insights offerings [16][68] Management's Comments on Operating Environment and Future Outlook - The external environment has become more volatile, leading to longer buying cycles and increased scrutiny from clients [5][6] - Management expects contract value growth to accelerate throughout 2026, driven by operational changes and reduced federal government headwinds [42][51] - The company is optimistic about the impact of its transformation initiatives on future growth [15][66] Other Important Information - The company repurchased over $2 billion of stock in 2025, enhancing shareholder value [5][14] - The company has a strong balance sheet with $2.7 billion of liquidity and low levels of leverage [31] Q&A Session Summary Question: Expected contract value acceleration - Management expects contract value to accelerate throughout 2026, not just due to reduced federal government headwinds but also from operational changes [42] Question: Leading indicators and renewal rates - Engagement levels have been rising, and higher conference scores indicate positive trends in client engagement [44] Question: Quarterly phasing of contract value growth - Management anticipates a consistent quarterly phasing of contract value growth, with more renewals expected in Q1 and Q4 [56] Question: Strategic divestitures and organizational changes - The divestiture of the Digital Markets business was driven by a focus on core insights and the need for skills aligned with future business needs [66][68] Question: Institutionalizing processes for insights collection - The company has developed sophisticated systems to ensure analysts receive relevant insights from client interactions [75]

Financial Data and Key Metrics Changes - Fourth quarter revenue was $1.8 billion, up 2% year-over-year as reported and unchanged FX neutral [16] - Full year revenue was $6.5 billion, up 4% as reported and 3% FX neutral [16] - Fourth quarter EBITDA was $436 million, up 5% as reported and 1% FX neutral [16] - Adjusted EPS for the fourth quarter was $3.94, and for the full year, it was $13.17 [27] - Free cash flow for the fourth quarter was $271 million, and for the full year, it was $1.2 billion [28] Business Line Data and Key Metrics Changes - Insights segment revenue in the fourth quarter grew 3% year-over-year as reported and 1% FX neutral [17] - Fourth quarter Insights contribution margin was 77%, up 59 basis points versus last year [17] - Global Technology Sales contract value was $3.9 billion at the end of the fourth quarter, about flat compared with the prior year [20] - Global Business Sales contract value was $1.2 billion at the end of the fourth quarter, up 3% year-over-year [21] - Consulting revenue for the fourth quarter was $134 million, compared with $153 million in the year-ago period [23] Market Data and Key Metrics Changes - Contract value outside the U.S. Federal Government grew 4% year-over-year [18] - All but two of the top ten countries grew in 2025, with one growing double digits [20] - Wallet retention for Global Technology Sales was 96% for the quarter [20] - Wallet retention for Global Business Sales was 99% for the quarter [21] Company Strategy and Development Direction - The company is focusing on transforming business and technology insights along four dimensions: impact, volume, timeliness, and user experience [12] - The transformation aims to enhance client engagement and retention, which are critical for growth [62] - The company plans to continue expanding its AI insights, having documented over 1,000 unique use cases and conducted more than 200,000 client conversations on AI [7][10] - The divestiture of the digital markets business allows the company to concentrate on its core insights business [15][66] Management's Comments on Operating Environment and Future Outlook - The management noted that external market forces have led to increased scrutiny and extended buying cycles [4] - The company expects contract value to accelerate throughout 2026, driven by operational changes and reduced headwinds from the federal government [41][50] - Management emphasized the importance of client engagement, stating that higher engagement leads to better renewal rates [44] - The company is prepared for ongoing disruption and chaos in the market, focusing on enhancing its core offerings [61] Other Important Information - The company repurchased more than $2 billion of its stock in 2025 [4] - The expected free cash flow generation for 2026 is $1.135 billion or more, reflecting a conversion from GAAP net income of 140% [37] - The company has a strong balance sheet with $2.7 billion of liquidity and low levels of leverage [30] Q&A Session Questions and Answers Question: Expected contract value acceleration - The company expects contract value to accelerate throughout the year, not just due to lesser headwinds in the federal government but also from operational changes made in the second half of last year [41] Question: Leading indicators and renewal rates - Leading indicators show that client engagement is rising, which is expected to positively impact renewal rates over the next 12 to 24 months [44] Question: CV growth expectations for 2026 - The company expects contract value growth to accelerate over the course of 2026, with various factors supporting this growth [50] Question: Quarterly phasing of CV growth - The company anticipates a consistent quarterly phasing of contract value growth, with more renewals expected in Q1 and Q4 [55] Question: Strategic actions and divestitures - The divestiture of the digital markets business was driven by a focus on core insights and the need to adapt to a changing environment [66]

Financial Data and Key Metrics Changes - Fourth quarter revenue was $1.8 billion, up 2% year-over-year as reported and unchanged FX neutral [17] - Full year revenue was $6.5 billion, up 4% as reported and 3% FX neutral [17] - Fourth quarter EBITDA was $436 million, up 5% as reported and 1% FX neutral [17] - Adjusted EPS for the fourth quarter was $3.94, and for the full year, it was $13.17 [18][26] - Free cash flow for the fourth quarter was $271 million, compared to $311 million in Q4 2024 [27] - Full year free cash flow was $1.2 billion, with a strong ROIC at around 24% [18][28] Business Line Data and Key Metrics Changes - Insights segment revenue grew 3% year-over-year in Q4, and 5% for the full year [18] - Fourth quarter Insights contribution margin was 77%, up 59 basis points from last year [18] - Global Technology Sales contract value was $3.9 billion, flat compared to the prior year, with CV outside the U.S. federal business growing 4% [20] - Global Business Sales contract value was $1.2 billion, up 3% year-over-year, with wallet retention for GBS at 99% for the quarter [21] Market Data and Key Metrics Changes - Contract value outside the U.S. Federal Government grew 4% year-over-year [19] - All but two of the top ten countries grew in 2025, with one growing double digits [20] - Conferences revenue for Q4 was $286 million, with a contribution margin of 51% [23] Company Strategy and Development Direction - The company is focusing on transforming business and technology insights along four dimensions: impact, volume, timeliness, and user experience [12][38] - A definitive agreement was made to sell the digital markets business to concentrate on core insights offerings [16][28] - The company aims to enhance client engagement to drive retention and growth, particularly through the transformation program [62] Management Comments on Operating Environment and Future Outlook - The external environment has become more volatile, leading to longer buying cycles and increased scrutiny from clients [4][5] - Management expects contract value to accelerate throughout 2026, driven by operational changes and reduced federal government headwinds [41][50] - The company anticipates continued strong free cash flow generation and shareholder value enhancement through share repurchases [15][68] Other Important Information - The company repurchased over $2 billion of stock in 2025, enhancing shareholder value [4][13] - The company has a strong balance sheet with $2.7 billion of liquidity and low levels of leverage [29] Q&A Session Summary Question: Expected contract value acceleration in 2026 - Management expects contract value to accelerate throughout the year, not just due to reduced federal government headwinds but also from operational changes [41] Question: Leading indicators and renewal rates - Leading indicators show increased client engagement, particularly through improved conference scores and the impact of Ask Gartner [42][46] Question: CV growth expectations for 2026 - Management expects CV growth to accelerate, with a focus on both federal and non-federal segments [50] Question: Quarterly phasing of CV growth - The company anticipates a consistent quarterly phasing of CV growth, with more renewals expected in Q1 and Q4 [55] Question: Strategic actions and divestitures - The divestiture of the digital markets business was driven by a focus on core insights and enhancing shareholder value [62][68] Question: Institutionalizing processes for insights collection - The company has developed sophisticated systems to collect and analyze insights from client interactions, enhancing the research process [73][75] Question: Client feedback on AI - AI is a significant topic in client discussions, but there is no substantial concern about AI substituting Gartner's services [79][80]

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]

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]

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 [23][25] - Adjusted EBITDA was $443 million, up 7% as reported and 5% FX neutral compared to the previous year [25][36] - Adjusted EPS increased to $3.53, reflecting a 10% rise from Q2 of last year [26][38] - Free cash flow for the quarter was $347 million, up 2% compared to Q2 in 2024 [39][48] Business Line Data and Key Metrics Changes - Insights revenue grew 4% year over year as reported and 3% FX neutral, with subscription revenue increasing by 5% FX neutral [26][27] - Global Technology Sales (GTS) contract value was $3.8 billion, up 4% year over year, while Global Business Sales (GBS) contract value reached $1.2 billion, up 9% year over year [29][31] - Conference revenue increased by 14% as reported and 12% FX neutral, while consulting revenue was $156 million, up about 9% as reported [33][34] 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 [28] - Excluding the US federal government, CV growth was approximately 6%, with positive NCVI of $13 million [27][28] - Dollar retention year to date was around 47%, with approximately $200 million of US federal CV [29][30] 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 [5][21] - The research segment has been renamed to business and technology insights to better reflect the value provided to clients [20][26] - The company is enhancing its capabilities in cost optimization and supply chain reconfiguration due to tariff changes [10][12] 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 [7][8] - The company expects to return to double-digit growth by addressing operational changes and leveraging AI tools [49][55] - The updated guidance reflects continued challenges in the selling environment, but there is high visibility into subscription revenue for 2025 [42][43] Other Important Information - The company has increased its share repurchase program, buying back approximately $720 million year to date [24][41] - The expected free cash flow for 2025 is at least $1.145 billion, reflecting a conversion from GAAP net income of 141% [48] Q&A Session Summary Question: Can you size the tariff-impacted industries and their CV representation? - Approximately 35% to 40% of CV falls into tariff-impacted industries across both GTS and GBS [59] Question: What are the common AI-related questions from clients? - Clients seek help with mission-critical priorities such as cybersecurity and leveraging AI within their organizations [67][68] Question: How is new business performing among government clients? - New business is being written, but the contracting process is complex, leading to challenges in growth [81][83] Question: What is the impact of tariffs on GTS and GBS? - GBS is likely more reliant on tariff-affected clients due to its focus on supply chain practices [85] Question: How is the company addressing AI's potential impact on service demand? - The company is focused on demonstrating the unique value of its insights and services, which are complex and multi-year in nature [110][112]