Gartner Earnings Surpass Estimates in Q2, Revenues Increase Y/Y

Gartner, Inc. IT has reported second-quarter 2025 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate.The company’s adjusted earnings per share of $3.53 beat the Zacks Consensus Estimate by 4.4% and increased 9.6% from the year-ago quarter. Revenues of $1.7 billion beat the consensus estimate by a slight margin and improved 5.7% year over year.The IT stock has declined 30.5% in the year-to-date period compared with the 13.7% fall of the industry it belongs to and 7.3% 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 Insights segment were $1.3 billion, which increased 4.2% from the year-ago quarter on a reported basis and 4.1% on a foreign-currency-neutral basis. The gross contribution margin was 74.5%, which amounted to a gross contribution of $945 million in the second quarter of 2025.Consulting segment revenues amounted to $135 million, which grew 6% from the year-ago quarter on a reported basis and 6.9% on a foreign-currency-neutral basis. The gross contribution margin was 40.3% in the reported quarter, which amounted to a gross contribution of $54 million.Conferences’ revenues were $70 million, which gained 8.4% year over year on a reported basis and 8.5% on a foreign-currency-neutral basis. The gross contribution margin was 33.2%, which logged a gross contribution of $23 million.Gartner’s Operating PerformanceAdjusted EBITDA of $382 million moved up marginally from the year-ago quarter on a reported basis and 5% on a foreign-currency-neutral basis.Balance Sheet & Cash Flow of ITGartner had $2.2 billion in cash and cash equivalents at the end of the quarter compared with $2 billion at the end of the preceding quarter. The long-term debt was $2.5 billion, flat with the first quarter of 2025.The operating cash flow totaled $384 million and the free cash flow utilized was $347 million in the reported quarter. Capital expenditure totaled $36 million.Gartner’s 2025 OutlookFor 2025, the company has lowered the guidance for total revenues and expects it to be at least $6.46 billion compared with the preceding quarter’s view of $6.54 billion. The guidance is lower than the Zacks Consensus Estimate of $6.57 billion.IT has raised the guidance for adjusted earnings per share to at least $11.75 compared with the preceding quarter’s view of $11.70. The guidance is lower than the Zacks Consensus Estimate for earnings of $12.65 per share.The adjusted EBITDA guidance has been lowered to at least $1.52 billion from the $1.53 billion given in the previous quarter. The free cash flow guidance is kept at least $1.15 billion.Gartner carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Earnings Snapshot of PeersVerisk VRSK reported impressive second-quarter fiscal 2025 results.VRSK’s adjusted earnings were $1.88 per share, surpassing the Zacks Consensus Estimate by 6.2% and increasing 8.1% from the year-ago quarter. Total revenues of $772.6 million beat the consensus estimate marginally and increased 7.8% on a year-over-year basis.IQVIA Holdings Analytics Inc. IQV posted impressive second-quarter 2025 results.IQV’s adjusted earnings were $2.81 per share, beating the Zacks Consensus Estimate by 1.8% and rising 6.4% on a year-over-year basis. Total revenues of $4 billion surpassed the consensus estimate by 1.5% and grew 5.3% from the year-ago quarter.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent. Thousands have taken advantage of this opportunity.Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators, and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks Now >>Want 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 Verisk Analytics, Inc. (VRSK): Free Stock Analysis Report IQVIA Holdings Inc. (IQV): 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