Why Did Gartner Plunge 13.28% Despite Strong Q2 Earnings?

Gartner's stock price plummeted by 13.28% in pre-market trading on August 5, 2025, marking a significant downturn for the company.

Gartner reported a 5.7% increase in revenue for the second quarter of 2025, with total revenues reaching $1.7 billion. This growth was driven by strong performance across all segments, including Research, Conferences, and Consulting. The company's net income also saw a 4.9% increase to $241 million, reflecting its operational efficiency and strategic initiatives.

The company's adjusted earnings per share (EPS) rose by 6%, and its cash reserves stood at $2.2 billion. Gartner continued its share buyback program, repurchasing 0.7 million common shares for $274 million, demonstrating its commitment to enhancing shareholder value. The company's operating cash flow increased by 3.7% to $384 million, and free cash flow rose by 2.0% to $347 million, indicating its ability to generate cash for operations and growth.

Gartner's Chairman and Chief Executive Officer, Gene Hall, highlighted the company's strong performance in the second quarter, noting that revenue, adjusted EBITDA, adjusted EPS, and free cash flow were ahead of expectations. The company's rollout of AskGartner, an AI-powered tool, is expected to provide faster access to trusted business and technology insights, further enhancing client value.