Gartner (IT) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenues grew 2.7%–3% year-over-year to $1.52 billion, with FX-neutral growth of 1.2%–3%; contract value reached $5.0 billion, up 3% FX neutral.

• Net income dropped sharply to $35.4 million from $415 million in Q3 2024, primarily due to a $150 million goodwill impairment and the absence of a $300 million insurance gain recognized in 2024.

• Adjusted EBITDA rose 1.9% to $347 million, with adjusted EPS up 10.4% to $2.76.

• Operational adaptations and AI investments, including the AskGartner tool, supported client engagement and retention.

• Record share repurchases exceeded $1.1 billion in Q3, with $1.3 billion remaining authorized.

Financial highlights

• Q3 2025 revenue was $1.52 billion, up 2.7%–3% year-over-year; adjusted EBITDA was $347 million, up 1.9%; adjusted EPS was $2.76, up 10.4%.

• Insights segment revenue rose 5%–5.1% to $1.27 billion, with a 76.7%–77% contribution margin.

• Conferences revenue declined 1.6%–2% to $74.6–$75 million; contribution margin 36.6%–37%.

• Consulting revenue fell 3%–3.2% to $123.6–$124 million; contribution margin 28.5%–29%.

• Free cash flow for Q3 was $269 million; rolling four-quarter free cash flow conversion from GAAP net income was 137%.

Outlook and guidance

• Full-year 2025 guidance raised: revenue at least $6.475 billion, adjusted EBITDA at least $1.575 billion, adjusted EPS at least $12.65, and free cash flow at least $1.145 billion.

• Adjusted EBITDA and margin guidance increased; contract value growth expected to accelerate in 2026.

• Medium-term guidance targets 12–16% revenue growth for Insights, 5–10% for Conferences, and 3–8% for Consulting.

• FX expected to provide a modest tailwind to revenue and EBITDA.