Gartner (IT) Q4 2025 earnings summary

Executive summary

• Q4 2025 revenue reached $1.8 billion, up 2% year-over-year as reported, with adjusted EBITDA of $436 million, up 5%, and adjusted EPS of $3.94, though net income declined 39% year-over-year.

• Full-year 2025 revenue was $6.5 billion, up 4% as reported, with adjusted EPS of $13.17 and free cash flow of $1.2 billion, but net income fell 42%.

• Over $2 billion in share repurchases were completed in 2025, reducing share count by 8%, and board authorization was refreshed to $1.2 billion in January 2026.

• Major transformation initiatives in Business and Technology Insights (BTI) began, focusing on impact, volume, timeliness, and user experience to drive higher client engagement and retention.

• The company divested its Digital Markets business, completed a bond issuance to increase leverage, and added new directors to the board.

Financial highlights

• Q4 revenue was $1.8 billion, up 2% year-over-year; full-year revenue was $6.5 billion, up 4%.

• Q4 EBITDA was $436 million, up 5% year-over-year; full-year EBITDA was $1.6 billion, with margins at 24.8%.

• Adjusted EPS for Q4 was $3.94; full-year adjusted EPS was $13.17.

• Free cash flow for Q4 was $271 million; full-year free cash flow was $1.2 billion, representing 161% of GAAP net income.

• ROIC remained strong at 24%.

Outlook and guidance

• 2026 consolidated revenue guidance is at least $6.455 billion, with 2% FX-neutral growth and EBITDA margin of 24.9%.

• 2026 adjusted EPS is expected to be $12.30 or more, and free cash flow at $1.135 billion or more.

• Contract value (CV) growth is expected to accelerate throughout 2026, driven by transformation initiatives and lessening federal government headwinds.

• Medium-term guidance targets ≥10% revenue growth, EBITDA growth above revenue, and EPS growth above EBITDA.