Gartner Earnings Outpace Estimates in Q4, Revenues Rise Y/Y

Gartner, Inc. IT has reported fourth-quarter 2025 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate.

The company’s adjusted earnings per share of $3.94 beat the Zacks Consensus Estimate by 12.6% but decreased 27.7% from the year-ago quarter. Revenues of $1.8 billion beat the consensus estimate by a slight margin and improved 2.2% year over year.

The IT stock has lost 63% in a year compared with the 35.1% dip in the industry it belongs to and against the 18.8% rally of the Zacks S&P 500 Composite.

IT’s Revenues by Segments

Revenues in the Insights segment were $1.3 billion, which increased 3% from the year-ago quarter on a reported basis and 1% on a foreign-currency-neutral basis, meeting the Zacks Consensus Estimate. The gross contribution margin was 77%, which amounted to a gross contribution of $989 million in the fourth quarter of 2025.

Conferences segment revenues amounted to $286 million, which jumped 14% from the year-ago quarter on a reported basis and 11% on a foreign-currency-neutral basis. The metric surpassed the consensus mark of $271.4 million. The gross contribution margin was 51% in the reported quarter, which amounted to a gross contribution of $147 million.

Consulting revenues were $134 million, which declined 13% year over year on a reported basis and 15% on a foreign-currency-neutral basis. It missed the consensus estimate of $156.7 million. The gross contribution margin was 27%, which logged a gross contribution of $36 million.

Gartner’s Operating Performance

Adjusted EBITDA of $436 million gained 5% from the year-ago quarter on a reported basis and 1% on a foreign-currency-neutral basis.

Balance Sheet & Cash Flow of IT

Gartner had $1.7 billion in cash and cash equivalents at the end of the fourth quarter compared with $1.4 billion at the end of the preceding quarter. The long-term debt was $3 billion compared with $2.5 billion in the third quarter of 2025.

The operating cash flow totaled $294.5 million and the free cash flow utilized was $311 million in the reported quarter. Capital expenditure totaled $23.8 million.

Gartner’s 2026 Outlook

For 2026, the company expects revenues of $6.46 billion. The guidance is lower than the Zacks Consensus Estimate of $6.7 billion.

IT’s guidance for adjusted earnings per share is $12.3. The guidance is lower than the Zacks Consensus Estimate for earnings of $13.63.

The adjusted EBITDA guidance is kept at $1.52 billion. The free cash flow guidance is set at $1.14 billion.

Gartner carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Earnings Snapshot of Peers

Automatic Data Processing, Inc. ADP reported impressive second-quarter fiscal 2026 results.

ADP’s earnings per share of $2.62 beat the consensus estimate by 1.6% and increased 11.5% from the year-ago quarter. Total revenues of $5.4 billion missed the consensus estimate by a slight margin but grew 6.1% on a year-over-year basis.

FactSet FDS posted impressive results for the first quarter of fiscal 2026.

FDS’s earnings per share of $4.51 beat the consensus mark by 2.7% and increased 3.2% from the year-ago quarter. Revenues of $607.6 million beat the Zacks Consensus Estimate by 1.4% and rose 6.9% from the year-ago quarter.

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This article originally published on Zacks Investment Research (zacks.com).

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