Gartner Inc (NYSE:IT) Reports Mixed Q3 2025 Results with EPS Beat and Revenue Miss

GARTNER INC (NYSE:IT) has reported financial results for the third quarter of 2025, delivering a performance that presents a mixed picture for investors. The company's earnings per share surpassed analyst forecasts, while its revenue fell short of expectations. The market's initial reaction appears to be cautiously digesting these contrasting signals.

Earnings and Revenue vs. Estimates

The core metrics from the earnings release show a clear divergence between profitability and top-line growth when measured against Wall Street's expectations.

• Adjusted EPS: The company reported Adjusted Earnings Per Share of $2.76. This figure solidly exceeded the analyst consensus estimate of $2.50.
• Revenue: Total revenue for the quarter was $1.524 billion. This came in below the analyst estimate of $1.566 billion.

This combination of a bottom-line beat and a top-line miss helps explain the nuanced market reaction. The stock's modest pre-market movement suggests investors are balancing the positive surprise on profitability against the softer-than-expected revenue performance.

Management Commentary and Key Performance Indicators

In the earnings release, CEO Gene Hall stated that the "third quarter financial results were ahead of expectations," highlighting strength in the company's core contract value metric and a record share repurchase program.

Key operational highlights from the press release include:

• Contract Value Growth: Total contract value grew by 3% year-over-year. Excluding the impact of the US Federal business, growth was 6%.
  • Global Technology Sales (GTS) CV: $3.8 billion, up 1.7% FX Neutral.
  • Global Business Sales (GBS) CV: $1.2 billion, up 7.1% FX Neutral.
• Capital Return: The company executed a record $1 billion in stock repurchases during the quarter.
• Updated Guidance: Gartner increased its full-year 2025 outlook for Adjusted EBITDA and margin.
• Segment Performance: The high-margin Insights segment, which represents the bulk of revenue, saw a 5.1% increase in sales. However, the Consulting and Conferences segments experienced revenue declines.

GAAP vs. Non-GAAP Results

A significant feature of this quarter's report is the substantial difference between GAAP and the company's preferred non-GAAP metrics. While Adjusted Net Income was a robust $207 million, GAAP net income was only $35 million. This was primarily due to a $150 million non-cash goodwill impairment charge related to the Gartner Digital Markets unit, which the company has reclassified into an "Other" reporting segment.

Forward Outlook and Analyst Estimates

The company's increased guidance for Adjusted EBITDA suggests internal confidence in its ongoing profitability. Looking ahead, analysts currently have estimates for the upcoming periods. For the next quarter (Q4 2025), the consensus is for revenue of $1.796 billion and earnings per share of $3.36. For the full 2025 year, the estimates stand at $6.683 billion in revenue and $12.57 in earnings per share. Investors will be watching to see if Gartner's operational momentum can meet or exceed these future targets.

Conclusion

Gartner's third-quarter results tell a story of resilient profitability and strategic capital management, albeit against a backdrop of slower revenue growth than anticipated. The strong EPS beat and aggressive stock buybacks provide a positive signal, while the revenue miss and one-time impairment charge introduce elements of caution. The market's tempered reaction reflects this balancing act, as investors weigh the company's solid underlying operational performance against its near-term top-line challenges.

For a more detailed look at Gartner's historical earnings and future analyst estimates, you can review the data here.

Disclaimer: This article is for informational purposes only and does not constitute investment advice, nor does it recommend buying or selling any security. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.