Gartner reported its third‑quarter 2025 financial results, posting revenue of $1.524 billion, a 2.7% year‑over‑year increase. Net income fell to $35 million, a 91.5% decline from $415 million in the same quarter of 2024, and diluted earnings per share dropped to $0.47, down 91.2% from $5.32. The company’s adjusted earnings per share, however, rose to $2.76, beating the consensus estimate of $2.41 and reflecting the impact of non‑cash items and restructuring charges that were excluded from the adjusted figure.
Operating cash flow for the quarter was $299 million, and free cash flow reached $269 million. Adjusted EBITDA climbed to $347 million, up 3% from the prior year, and the adjusted EBITDA margin improved to 22.7% from 21.9% in Q3 2024. Contract value for the quarter was $5.0 billion, a 3% year‑over‑year increase and 6% when excluding U.S. federal business, indicating steady demand for Gartner’s services.
The company announced a record share‑repurchase program, buying back $1.1 billion of shares—more than 4 million shares—in a single quarter. This move signals management’s confidence in the company’s valuation and its commitment to returning value to shareholders.
Gartner also updated its full‑year 2025 outlook, raising adjusted EBITDA guidance to $1.4 billion and margin guidance to 23.5%. The company cited stronger demand in its Insights segment, which grew 5.1% year‑over‑year, and highlighted the launch of its AI‑powered tool, AskGartner, as a key driver of future growth.
The company’s three operating segments—Insights (formerly Research), Conferences, and Consulting—reported mixed performance. Insights revenue increased, while Conferences and Consulting revenue declined, reflecting a shift in client spending toward data‑driven advisory services.
Management noted that the decline in net income and diluted EPS was largely due to higher operating costs and one‑time restructuring charges, but emphasized that the adjusted figures provide a clearer view of core profitability. The raised guidance reflects expectations of continued contract value growth and margin expansion in 2026.
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