IT Q1 2025 Earnings
Reported May 6, 2025 at 6:02 AM ET · SEC Source
Q1 25 EPS
$2.71
MISS 0.23%
Est. $2.72
Q1 25 Revenue
$1.53B
MISS 0.05%
Est. $1.53B
vs S&P Since Q1 25
-94.7%
TRAILING MARKET
IT -65.7% vs S&P +29.0%
Market Reaction
Did IT Beat Earnings? Q1 2025 Results
Gartner delivered a fractionally soft first quarter for fiscal 2025, with revenue of $1.53 billion and GAAP diluted EPS of $2.71 each falling just shy of Wall Street expectations, missing consensus estimates by 0.05% and 0.23% respectively, though CE… Read more Gartner delivered a fractionally soft first quarter for fiscal 2025, with revenue of $1.53 billion and GAAP diluted EPS of $2.71 each falling just shy of Wall Street expectations, missing consensus estimates by 0.05% and 0.23% respectively, though CEO Gene Hall characterized the results as ahead of the company's own internal targets. Revenue grew 4.2% year over year, accelerating to 5.7% on an FX-neutral basis, with the Research segment anchoring performance at $1.32 billion and a 74.5% contribution margin. The most compelling datapoint beneath the headline numbers was cash generation, as operating cash flow surged 66% to $314.00 million and free cash flow jumped 73.3% to $288.00 million, underscoring the durability of Gartner's subscription-driven model even as contract value growth faces scrutiny in a difficult selling environment. Forward contract value reached $5.10 billion, growing 6.7% FX neutral. Looking ahead, management updated its full-year 2025 outlook and signaled confidence in delivering adjusted EBITDA margin ahead of initial guidance while navigating tariff uncertainty and geopolitical volatility.
Key Takeaways
- • Contract value grew 6.7% YoY FX neutral to $5.1 billion
- • Global Business Sales contract value grew 10.8% FX neutral, outpacing GTS growth of 5.5% FX neutral
- • Operating cash flow surged 66% and free cash flow grew 73.3% year-over-year
- • Cost management delivered Adjusted EBITDA Margin ahead of initial guidance
IT YoY Financials
Q1 2025 vs Q1 2024, source: SEC Filings
IT Revenue by Segment
With YoY comparisons, source: SEC Filings
“First quarter financial results were ahead of our expectations. Contract value grew 7%. 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.”
— Gene Hall, Q1 2025 Earnings Press Release
IT Earnings Trends
IT vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
IT EPS Trend
Earnings per share: estimate vs actual
IT Revenue Trend
Quarterly revenue: estimate vs actual
IT Quarterly Results
4 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q3 25 BEAT | $2.43 | $2.76 | +13.73% | $1.52B | +0.23% |
| Q2 25 BEAT | $3.31 | $3.53 | +6.80% | $1.69B | +0.74% |
| Q1 25 MISS | $2.72 | $2.71 | -0.23% | $1.53B | -0.05% |
| Q3 24 BEAT | $2.38 | $2.50 | +5.04% | $1.48B | +0.62% |