Gartner (IT) reported earnings 30 days ago. What's next for the stock?
Despite recent share price decline, I maintain a buy rating on Gartner due to resilient 1Q25 results and strong underlying fundamentals. IT's key segments like Global Technology Sales and Global Business Sales show solid demand, indicating potential for future revenue growth. Federal headwinds are de-risking, and sales force expansion is on track, reinforcing confidence in growth acceleration into FY26.
Gartner, Inc. reported mixed Q1 results, with sales of $1.5B slightly missing estimates, but non-GAAP EPS beat expectations at $2.98 per share. Research remains the main revenue driver, with strong client retention and contribution margins, but federal contract renewals and tariffs pose risks. Despite a decline in NCVI, Gartner showed strong free cash flow growth and maintained a solid financial position with manageable debt levels.
An improved segmental performance benefits IT's top line in the first quarter of 2025.
Gartner, Inc. (NYSE:IT ) Q1 2025 Results Conference Call May 6, 2025 8:00 AM ET Company Participants David Cohen - Senior Vice President of Investor Relations Gene Hall - Chairman & Chief Executive Officer Craig Safian - Chief Financial Officer Conference Call Participants Jeffrey Meuler - Baird Toni Kaplan - Morgan Stanley George Tong - Goldman Sachs Joshua Chan - UBS Faiza Alwy - Deutsche Bank Jason Haas - Wells Fargo Andrew Nicholas - William Blair Jeff Silber - BMO Capital Markets David Cohen Good morning, everyone. Welcome to Gartner's First Quarter 2025 Earnings Call.
Although the revenue and EPS for Gartner (IT) give a sense of how its business performed in the quarter ended March 2025, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.
Gartner (IT) came out with quarterly earnings of $2.98 per share, beating the Zacks Consensus Estimate of $2.72 per share. This compares to earnings of $2.93 per share a year ago.
Gartner (IT) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Gartner (IT) reported earnings 30 days ago. What's next for the stock?
IT delivered strong 4Q24 results with 8.1% y/y revenue growth, driven by research, conferences, and consulting, and plans to expand the sales force. RCV growth accelerated for three consecutive quarters, indicating sustained future revenue growth and potential for research revenue to exceed 10% in FY25. Consulting and conference segments showed significant growth, reinforcing the view that underlying demand is back, with strong forward bookings for FY25.
Gartner, Inc. (NYSE:IT ) Q4 2024 Earnings Conference Call February 4, 2025 8:00 AM ET Company Participants David Cohen - Senior Vice President of Investor Relations Gene Hall - Chairman & Chief Executive Officer Craig Safian - Chief Financial Officer Conference Call Participants Jeffrey Meuler - Baird Toni Kaplan - Morgan Stanley Faiza Alwy - Deutsche Bank Andrew Nicholas - William Blair Manav Patnaik - Barclays Surinder Thind - Jefferies Joshua Chan - UBS George Tong - Goldman Sachs Jeff Silber - BMO Capital Markets Jason Haas - Wells Fargo David Cohen Good morning, everyone. Welcome to Gartner's Fourth Quarter 2024 Earnings Call.
Strong growth across segments benefits the top line of IT in the fourth quarter of 2024.