Gartner Reports $1.534 Billion Revenue and $210.9 Million Net Income in Q1 2025

Gartner, Inc. reported a total revenue of $1.534 billion for the first quarter of 2025, reflecting a 4% increase from $1.473 billion in the same period of 2024. The company's net income for the quarter was $210.9 million, slightly up from $210.5 million year-over-year. Diluted earnings per share rose to $2.71 from $2.67, driven by increased revenues and lower interest expenses. Operating income also saw a modest increase to $278.0 million, compared to $273.9 million in the prior year, despite rising costs in services and administrative expenses.

In terms of operational metrics, Gartner's Research segment generated $1.322 billion in revenue, a 4% increase from the previous year, with a gross contribution margin of 74%. The contract value for Research grew to $5.051 billion, up 7% year-over-year, indicating strong demand across various sectors, particularly in energy and healthcare. However, the company faced challenges in its U.S. federal government contracts, which decreased from approximately $275 million at the end of 2024 to $225 million by March 31, 2025, with several contracts not renewed.

Gartner's total costs and expenses for the quarter were $1.256 billion, up from $1.199 billion in the prior year, primarily due to a $40.5 million increase in selling, general, and administrative expenses, attributed to higher personnel costs. The company reported a significant increase in cash provided by operating activities, totaling $313.5 million, compared to $188.8 million in the same quarter of 2024. This improvement was largely due to better timing in collections.

The company continues to focus on strategic growth, with a total employee count of 21,107 as of March 31, 2025, marking a 4% increase from the previous year. Gartner's share repurchase program remains active, with $0.9 billion available for future buybacks. The company also maintains a strong liquidity position, with $2.1 billion in cash and cash equivalents and approximately $0.7 billion in available borrowing capacity under its revolving credit facility.

Looking ahead, Gartner acknowledges the potential impact of geopolitical uncertainties and government actions on its business operations. The company remains committed to monitoring these developments while focusing on enhancing its product offerings and client engagement strategies to sustain growth in a competitive market environment.