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Jun 30, 2025
Gartner Q2 2025 Earnings Report
Gartner reported strong second quarter 2025 results, exceeding expectations in revenue, adjusted EBITDA, adjusted EPS, and free cash flow.
Key Takeaways
Gartner delivered a robust second quarter in 2025, with revenues reaching $1.7 billion, a 5.7% increase year-over-year. The company reported a net income of $241 million and diluted EPS of $3.11. Adjusted EPS stood at $3.53, reflecting a 9.6% growth. Free cash flow was $347 million, and the company repurchased $274 million in common shares, demonstrating strong financial performance and commitment to shareholder value.
Revenues for the second quarter of 2025 reached $1.7 billion, marking a 5.7% increase as reported and 4.6% on an FX neutral basis.
Net income for the quarter was $241 million, up 4.9% year-over-year, with diluted EPS at $3.11, a 6.1% increase.
Adjusted EPS grew by 9.6% to $3.53, and adjusted EBITDA increased by 6.6% to $443 million.
Free cash flow was $347 million, and the company repurchased $274 million of common shares, with the Board increasing the share repurchase authorization by an additional $700 million.
Revenue by Segment
Forward Guidance
Gartner updated its financial outlook for the full year 2025, with management expressing confidence in continued growth and shareholder value creation, partly driven by the rollout of AskGartner.
Positive Outlook
- Continued strong performance in revenue, adjusted EBITDA, adjusted EPS, and free cash flow, exceeding expectations.
- Acceleration of stock buybacks to increase shareholder value, with a significant increase in repurchase authorization.
- Successful rollout of AskGartner, an AI-powered tool expected to enhance client experience and value.
- Commitment to delivering actionable, objective business and technology insights.
- Positive outlook for full year 2025 financial results.
Challenges Ahead
- Ability to maintain and expand products and services in a competitive market.
- Need to keep pace with technological developments in AI and comply with evolving AI regulations.
- Potential challenges in achieving continued customer renewals and new contract value growth due to competitive pressures.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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