Gartner, Inc. (NYSE: IT) announced its financial results for the first quarter ending March 31, 2025, reporting significant growth and operational efficiency amid a dynamic economic landscape. This authoritative analysis delves into who the company is, what the reported figures reveal, when the results were announced, where the impacts lie across financial statements, and why the outlook signals robust future potential.
Revenues for Q1 2025 rose to $1.534 billion, marking a 4.2% increase as reported and 5.7% on a foreign exchange (FX) neutral basis compared to Q1 2024.
Net income remained stable at $211 million, increasing marginally by 0.2%.
Adjusted EBITDA, a key profitability metric, grew to $385 million, a 0.7% rise (2.9% FX neutral).
Diluted EPS climbed 1.5% to \(2.71, while adjusted EPS increased 1.7% to \)2.98.
Operational cash flow witnessed a remarkable 66.0% surge to \(314 million, and free cash flow soared 73.3% to \)288 million.
Global Technology Sales Contract Value increased 5.5% FX neutral to $3.9 billion.
Global Business Sales Contract Value expanded 10.8% FX neutral to $1.2 billion.
Segment revenues reflected consistent growth: Research (\(1.322 billion, +5.8% FX neutral), Conferences (\)73 million, +5.4% FX neutral), Consulting ($140 million, +5.3% FX neutral).
CEO Gene Hall emphasized managing costs strategically while investing for future growth, aligning with the reported $5.1 billion contract value, up 6.7% YoY FX neutral. He stated, “In a dynamic world, we are managing our costs to deliver Adjusted EBITDA Margin ahead of our initial guidance while also investing for future growth. We continue to provide significant value to our clients and will emerge from the current environment even stronger.”
Placing the Q1 results in perspective with FY 2024 data: - FY 2024 total revenues were approximately \(6.27 billion, meaning Q1 revenues represent about 24.5% of the annual revenue run rate. - Net income for FY 2024 was \)1.25 billion; the Q1 net income proportion of about 16.9% suggests steady profitability sustained throughout the year. - The operating margin for FY 2024 was 23.9%, inline with the Q1 performance indicating operational consistency.
The 66% increase in operating cash flow and 73.3% increase in free cash flow highlight strong cash generation abilities foundational for debt repayment, stock repurchases, or strategic acquisitions.
As Gartner operates in technology research, consulting, and conference services, its results are influenced by global economic conditions including inflation, geopolitical risks, and regulatory changes, especially in artificial intelligence advancements. Tariffs and economic uncertainties consistently pose risks but Gartner’s diverse contract base and investment in growth enable resilience.
“First quarter financial results were ahead of our expectations,” said Gene Hall, Chairman and CEO of Gartner. This confidence is backed by solid contract growth and operational efficiency metrics.
For the full detailed release, please visit the official SEC filing here: https://sec.gov/Archives/edgar/data/749251/000074925125000026/it-03312025xex991.htm
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