Gartner's Q2 2025 Earnings Call: Unpacking Key Contradictions in Contract Value, Growth, and Government Sales

Impact of tariffs on contract value, renewal rates and sales cycles, new business growth in GTS, GTS and GBS client base dynamics, and U.S. federal government sales are the key contradictions discussed in Gartner's latest 2025Q2 earnings call.



AI as a Growth Opportunity:
- Gartner highlighted AI as the highest demand topic, with AI-powered tools like AskGartner being rolled out to enhance client engagement and insights.
- AI is driving demand across all client topics and is seen as a key opportunity for growth.

Impact of U.S. Federal Government Policies and Tariffs:
- U.S. federal government initiatives led to a decline in contract value, with around 50% retention year-to-date.
- Tariff policies affected industries, leading to cost-cutting measures and delayed purchase decisions.

Revenue and Contract Value Trends:
- Revenue was $1.7 billion, up 6% year-over-year, and contract value was $5 billion, up 5% from the previous year.
- The growth was broad-based across practices and industries though negatively affected by U.S. federal government and tariff-affected sectors.

Focus on Operational Adaptations:
- Gartner is implementing cost optimization services and retooling sales and research processes to reaccelerate growth.
- This includes the expansion of AI applications for internal efficiency and a focus on double-digit growth by 2027.