This article first appeared on GuruFocus.
Fourth-Quarter Revenue: $1.8 billion, up 2% year-over-year as reported, unchanged FX neutral.
Full Year Revenue: $6.5 billion, up 4% reported, 3% FX neutral.
Fourth-Quarter EBITDA: $436 million, up 5% reported, 1% FX neutral.
Full Year EBITDA: $1.6 billion, with margins at 24.8%.
Adjusted EPS (Q4): $3.94.
Adjusted EPS (Full Year): $13.17.
Free Cash Flow (Q4): $271 million.
Free Cash Flow (Full Year): $1.2 billion.
Contract Value (Q4): $5.2 billion, up 1% year-over-year.
Insights Revenue (Q4): Grew 3% year-over-year as reported, 1% FX neutral.
Conferences Revenue (Q4): $286 million, with 8% FX neutral growth on a same conference basis.
Consulting Revenue (Q4): $134 million, compared to $153 million in the prior year.
Stock Repurchase: $2 billion in 2025.
2026 Revenue Guidance: $6.455 billion or more, FX-neutral growth of 2%.
2026 Adjusted EPS Guidance: $12.30 or more.
2026 Free Cash Flow Guidance: $1.135 billion or more.
Release Date: February 03, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Gartner Inc (NYSE:IT) exceeded expectations in Q4 2025 with strong revenue, EBITDA, margins, EPS, and free cash flow.
The company repurchased over $2 billion of its stock in 2025, enhancing shareholder value.
Gartner Inc (NYSE:IT) is transforming its business and technology insights along four dimensions: impact, volume, timeliness, and user experience, which is expected to increase client engagement and retention.
The company expanded its AI insights significantly, with over 6,000 AI-related documents and more than 200,000 in-depth client conversations on AI in 2025.
Gartner Inc (NYSE:IT) successfully increased leverage with an inaugural investment-grade bond offering, supporting further share repurchase capacity.
External market forces, such as government efficiency initiatives and evolving trade policies, have created a tougher selling environment with increased scrutiny and extended buying cycles.
The US federal government contracts faced significant headwinds, impacting contract value growth.
The company experienced challenges with clients reducing seats or taking lower levels of service due to budget constraints.
The selling environment remains challenging, with no expected improvement in 2026 compared to 2025.
Gartner Inc (NYSE:IT) anticipates a step down in margin guidance for 2026, reflecting incremental investments and a challenging market environment.
Story Continues
Q: On the expected contract value acceleration as 2026 unfolds, are you expecting acceleration beyond the federal government headwind? What are the leading indicators for this? A: Eugene Hall, CEO: Yes, we expect contract value (CV) to accelerate throughout the year, not just due to lesser headwinds from the US federal government. We made significant changes in the second half of last year, and we expect these to impact 2026 and 2027. Leading indicators, such as increased client engagement and positive conference feedback, suggest we’re on a good track.
Q: How are you thinking about getting back to high single-digit CV growth in 2026? Have there been any changes to the factors affecting this? A: Craig Safian, CFO: We expect CV growth to accelerate over 2026, including within the US federal business. While we don’t guide specifically to CV, we anticipate that the factors we’ve discussed will support this growth. The environment remains chaotic, but our guidance and operating assumptions include accelerating CV growth.
Q: Can you discuss the quarterly phasing of CV growth and any internal initiatives that might impact this? A: Craig Safian, CFO: Our expiration schedule for 2026 is consistent with historical patterns, with more renewals in Q1 and Q4. We expect NCVI to be consistent with past years, with more impact from our transformation initiatives in the second half of the year.
Q: What drove the recent strategic steps, such as the divestiture of the non-subscription business and organizational realignment? A: Eugene Hall, CEO: We concluded that the world will continue to be disruptive, so we focused on our core business and increasing client engagement. The divestiture of the digital markets business and staff changes were part of ensuring we have the right skills and focus to thrive in any economic environment.
Q: Are there any changes to your sales strategy or go-to-market approach for 2026? A: Eugene Hall, CEO: We continue to innovate in sales, including using AI-based role-play tools for training and identifying weekly high-value content for salespeople. We’re expanding the role of business developers, with a modest sales force expansion planned for 2026, focusing on areas with strong productivity.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.