Gartner (IT) Posts Q2 2025 Financial Results

Gartner, Inc. (NYSE:IT) is one of the Reddit Stocks with the Highest Upside Potential. On August 5, the company posted Q2 2025 financial results, with revenue, adjusted EBITDA, adjusted EPS, and FCF ahead of expectations. Gartner, Inc. (NYSE:IT) noted that the challenging Q1 2025 selling environment, which was impacted by DOGE and tariff-affected industry spending changes, continued through Q2 2025. With the help of disciplined expense management, Gartner, Inc. (NYSE:IT) plans to continue to deliver healthy profitability and FCF.

Since the end of Q1 2025, Gartner, Inc. (NYSE:IT) increased its pace of share repurchases. The company purchased $274 million in Q2 2025 and an additional $282 million since the end of Q2 2025. Gartner, Inc. (NYSE:IT) expects 2025 adjusted EPS of at least $11.75, reflecting an increase from last quarter. For 2025, it anticipates FCF of at least $1.145 billion. The company expects Insights revenue of at least $5.255 billion, reflecting FX-neutral growth of ~2%. This demonstrates the subscription Insights revenue growth of ~4%.

Gartner, Inc. (NYSE:IT) anticipates ~$210 million of non-subscription revenue and conferences revenue of at least $625 million, reflecting FX-neutral growth of ~5%. Baron Funds, an investment management company, released its Q2 2025 investor letter. Here is what the fund said:

“Modest declines from the Fund’s sizable positions in Gartner, Inc. (NYSE:IT) and Roper Technologies, Inc. also contributed to relative weakness in the sector. Syndicated research provider Gartner was negatively impacted by reductions in government spending in its public sector business. We estimate U.S. federal exposure accounts for about 5% of Gartner’s total research contract value, with about half from the Department of Defense and intelligence organizations, and half from civilian agencies. While federal budget scrutiny remains high, we believe Gartner’s services deliver significant value to users, including the potential for hard dollar savings. Its private sector business appears well positioned for sustained growth, and management is adept at exercising cost controls to support margins and free cash flow generation. The company’s balance sheet is in excellent shape, and we expect management to take advantage of this drawdown through aggressive share repurchases.”

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Disclosure: None. This article is originally published at Insider Monkey.