Gartner Earnings Surpass Estimates in Q1, Revenues Increase Y/Y

Gartner, Inc. IT has reported first-quarter 2025 results wherein earnings surpassed the Zacks Consensus Estimate and revenues met the same.The company’s adjusted earnings per share of $2.98 beat the Zacks Consensus Estimate by 9.6% and increased 1.7% from the year-ago quarter. Revenues of $1.5 billion met the consensus estimate and improved 4.2% year over year.The IT stock has declined 2.3% in a year compared with the 4.1% fall of the industry it belongs to and 9.1% growth of the Zacks S&P 500 Composite.Gartner, Inc. Price, Consensus and EPS Surprise  Gartner, Inc. price-consensus-eps-surprise-chart | Gartner, Inc. QuoteIT’s Revenues by SegmentsRevenues in the Research segment were $1.3 billion, which increased 4.2% from the year-ago quarter on a reported basis and 5.8% on a foreign-currency-neutral basis. The gross contribution margin was 74.5%, which amounted to a gross contribution of $985 million in the first quarter of 2025.Consulting segment revenues amounted to $140 million, which grew 3.7% from the year-ago quarter on a reported basis and 5.3% on a foreign-currency-neutral basis. The gross contribution margin was 38.2% in the reported quarter, which amounted to a gross contribution of $53 million.Conferences’ revenues were $73 million, which gained 3.6% year over year on a reported basis and 5.4% on a foreign-currency-neutral basis. The gross contribution margin was 37.7%, which logged a gross contribution of $27 million.Gartner’s Operating PerformanceAdjusted EBITDA of $385 million moved up marginally from the year-ago quarter on a reported basis and 2.9% on a foreign-currency-neutral basis.Balance Sheet & Cash Flow of ITGartner had $2 billion in cash and cash equivalents at the end of the quarter compared with $1.9 billion at the end of the preceding quarter. The long-term debt was $2.5 billion, flat with the fourth quarter of 2024.The operating cash flow totaled $313.5 million and the free cash flow utilized was $288 million in the reported quarter. Capital expenditure totaled $26 million.Gartner’s 2025 OutlookFor 2025, the company has lowered the guidance for total revenues and expects it to be at least $6.54 billion compared with the preceding quarter’s view of $6.56 billion. The guidance is higher than the Zacks Consensus Estimate of $6.51 billion.IT has raised the guidance for adjusted earnings per share to at least $11.70 from the $11.45 provided in the preceding quarter. The guidance is lower than the Zacks Consensus Estimate for earnings of $12.18.The adjusted EBITDA guidance has been hiked to at least $1.53 billion from the $1.51 billion given in the previous quarter. The free cash flow guidance is raised to at least $1.15 billion from the $1.14 billion provided in the preceding quarter.Gartner carries a Zacks Rank #4 (Sell) at present.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Earnings Snapshot of PeersFiserv, Inc. FI reported mixed first-quarter 2025 results.FI’s adjusted earnings per share of $2.14 beat the consensus mark by 2.9% and gained 13.8% year over year. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)Adjusted revenues of $4.8 billion missed the consensus estimate by 1.6% but gained 5.5% on a year-over-year basis.TransUnion TRU posted impressive first-quarter 2025 results.TRU’s quarterly adjusted earnings (adjusting 20 cents from non-recurring items) of 95 cents per share surpassed the consensus mark by 10.5% and increased 14.5% year over year. Total revenues of $1.1 billion outpaced the consensus mark by 2.5% and increased 7.3% from the year-ago quarter.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Gartner, Inc. (IT): Free Stock Analysis Report Fiserv, Inc. (FI): Free Stock Analysis Report TransUnion (TRU): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks