Gartner's Q3 profit beats; raises FY adj EBITDA forecast

Gartner

04/11/2025 11:17

Overview

Gartner Q3 revenue grows 2.7%

Adjusted EPS for Q3 beats analyst expectations, rising 10.4%

Company repurchased 4 mln shares for $1.1 bln, boosting repurchase authorization

Outlook

Gartner raises full-year 2025 Adjusted EBITDA and margin guidance

Company expects contract value to accelerate in 2026

Result Drivers

CONTRACT VALUE GROWTH - Contract value increased by 3% YoY, with a 6% rise excluding the US Federal business

AI TOOL LAUNCH - Completed Beta launch of AskGartner, an AI-powered tool for enhanced client experience

SHARE REPURCHASE - Repurchased $1.1 bln in shares, a record for a single qtr, reflecting perceived value

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
$1.52 bln
$1.52 bln (11 Analysts)
Q3 Adjusted EPS
Beat
$2.76
$2.42 (13 Analysts)
Q3 EPS
$0.47
Q3 Net Income
$35 mln
Q3 Operating Cash Flow
$299 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 5 "strong buy" or "buy", 9 "hold" and 1 "sell" or "strong sell"

The average consensus recommendation for the it services & consulting peer group is "buy."

Wall Street's median 12-month price target for Gartner Inc is $290.00, about 15.2% above its November 3 closing price of $245.92

The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 26 three months ago

Press Release: ID:nBw5sJ8NYa

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)