What guidance did Gartner's management provide for the next earnings period?

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What factors drove the changes in Gartner's revenue and profit?

What does Gartner do and what are its main business segments?

What were the key takeaways from Gartner's earnings call?

What is the market's earnings forecast for Gartner next quarter?

What were the key takeaways from Gartner’s earnings call?

What is the revenue and EPS growth rate for Gartner year over year?

- **Revenue Beat Expectations**: $1.5 billion Q3 revenue (+3% YoY).\n- **AI-Driven Growth**: 6,000+ AI documents and 1,000 use cases fuel demand, with internal AI tools boosting analyst productivity by 31%.\n- **Strong Financials**: EBITDA of $347M (+2% YoY), EPS of $2.76 (+10% YoY), and $269M free cash flow.\n- **Guidance Uptick**: 2025 CV growth of 3% (4% FX-neutral), EBITDA of $1.575B, and EPS of $12.65.\n- **2026 Outlook**: High single-digit CV growth, with double-digit growth resuming by 2027.\n- **Share Buybacks**: $1.1B repurchased in Q3, reducing shares by 6% YoY.\n- **Tariff Impact**: Non-tariff industries outperformed by 200bps, with normalization expected in 2026.\n

**【CEO Summary Section】**
- Q3 financial results exceeded expectations, with contract value (CV) growth of 3% year-over-year (6% excluding U.S. federal government).\n- Enterprise client retention improved, with in-quarter renewal rates rising from Q2 and dollar retention at 46% year-to-date.\n- AI adoption is driving demand for Gartner's insights, with over 6,000 AI-related documents and 1,000 use cases cataloged.\n- Internal AI tools have increased analyst productivity by 31% YoY and reduced publishing time by 75%.\n- Stock buybacks of $1.1 billion reduced shares outstanding by 6% YoY.\n
**【CFO Financial Commentary】**
- Q3 revenue: $1.5 billion (3% YoY as reported, 1% FX-neutral).\n- EBITDA: $347 million (2% YoY growth).\n- Adjusted EPS: $2.76 (10% YoY increase).\n- Free cash flow: $269 million.\n- Updated 2025 guidance: CV growth of 3% (4% FX-neutral), EBITDA of $1.575 billion, and EPS of $12.65.\n- 2026 outlook: CV growth acceleration to high single digits, with a path to double-digit growth by 2027.\n
**【Q&A Key Highlights】**\n- **Contract Renewals**: In-quarter renewal rates improved from Q2, with retention rates up 270bps excluding U.S. federal business.\n- **Tariff Impact**: Non-tariff-affected industries grew 200bps faster than tariff-affected sectors.\n- **Expense Management**: SG&A growth of 7% YoY driven by headcount and merit increases, balanced with automation and lower-cost geographies.\n- **Sales Headcount**: Expect 3-4% slower growth than CV in 2026, aligning with reacceleration plans.\n- **AskGartner**: Fully integrated into client access, boosting engagement and retention without additional cost.\n- **U.S. Federal Business**: $165 million CV remaining, with 85% of contracts renewed YoY.\n- **AI Competition**: Minimal client interest in LLMs as alternatives to Gartner's AI-driven insights.\n

Gartner, Inc. (IT) Q3 2025 Earnings Call Transcript

- **AI-Driven Growth**: AskGartner tool and internal AI applications position Gartner to capture AI-related opportunities, with pilot clients achieving 75% time savings.
- **Q2 Financial Resilience**: Revenue ($1.7B), EBITDA ($443M), and EPS ($3.53) all exceeded expectations, supported by strong free cash flow ($347M) and $720M in share buybacks.
- **Path to Double-Digit Growth**: 2026 CV growth expected to accelerate to low to mid-single digits, targeting double-digit growth by 2027 through federal renewals, tariff normalization, and operational efficiency improvements.
- **Tariff Impact**: ~35-40% of CV affected by tariffs, with slowed sales cycles but strong demand for cost optimization services.
- **Share Repurchases**: $720M in buybacks year-to-date, with authorization increased to $1B, driving EPS accretion and shareholder value.

**【CEO Summary Section】**
- **AI as Strategic Growth Driver**: AI is the largest demand area, with clients seeking Gartner's expertise for their AI journeys. The company rolled out AskGartner, an AI-powered tool providing faster access to proprietary insights, with pilot clients reporting up to 75% time savings. Internal AI applications have been implemented across 50+ use cases to improve efficiency.
- **Headwinds and Adaptations**: Q2 challenges included U.S. federal government procurement changes (DOGE) and tariff-related cost-cutting measures, leading to 78% of CEOs implementing cost-saving strategies. Gartner adapted by expanding cost optimization services, redesigning research processes, and launching a sales development program to equip associates with AI and cost-saving expertise.
- **Growth Path to Double-Digits**: Despite Q2 CV growth of 5% (FX-neutral), management expects 2026 growth to accelerate to low to mid-single digits, driven by U.S. federal renewals, normalized tariff-affected industries, tech vendor recovery, and operational improvements. The goal is to return to double-digit growth by 2027.

**【CFO Financial Commentary】**
- **Q2 Financial Highlights**: Revenue of $1.7B (+6% YoY), EBITDA of $443M (+7% YoY), and adjusted EPS of $3.53 (+10% YoY) exceeded expectations. Free cash flow was $347M, with $720M in share repurchases year-to-date.
- **Segment Performance**: Insights segment grew 4% YoY, with subscription revenue up 5%. Conferences revenue rose 14% YoY, and Consulting revenue increased 9% YoY. Non-subscription Insights revenue faced traffic volume challenges.
- **Guidance Update**: Full-year 2025 revenue guidance of $6.455B (+2% FX-neutral), EBITDA of $1.515B, and adjusted EPS of $11.75 reflect cautious outlook due to macro challenges. Free cash flow is expected to remain strong at $1.145B.

**【Q&A Highlights】**
- **Tariff-Impacted Industries**: ~35-40% of CV is from tariff-affected sectors, with GBS (e.g., supply chain) more impacted than GTS. Escalated decision-making (e.g., CFO/CEO approval) slowed sales cycles, but demand for Gartner's cost optimization services surged.
- **AskGartner Rollout**: Available to all licensed users, with thousands added monthly, aiming for full rollout by year-end. The tool leverages Gartner's proprietary data, offering structured answers via NLP.
- **Federal Government Business**: Dollar retention rate of ~47% YoY, with challenges in renewals due to procurement changes. New business is limited but retained clients value Gartner's efficiency-focused solutions.
- **Headcount Strategy**: QBH (quota-bearing headcount) is flat for 2025, with focus on optimizing territories and productivity. Reacceleration of QBH growth is tied to 2026-2027 double-digit growth goals.


Gartner, Inc. (IT) Q2 2025 Earnings Call Transcript

- **Q1 Strong Results**: 7% CV growth, 4% revenue growth, and 2% EPS beat, with free cash flow up 73%. 
- **Tech Vendor Momentum**: Research CV +8% FX-neutral, Consulting backlog +16%, Contract Optimization +38%. 
- **AI Differentiation**: Gartner helps 1000+ enterprises with AI adoption, positioning for future growth. 
- **Federal Resilience**: U.S. federal CV down 40% YoY, but 50% renewal rate in Q1, with 80% of impact from policy changes. 
- **2025 Guidance**: EBITDA up $25M to $1.535B, free cash flow $1.145B, targeting 4% FX-neutral revenue growth. 
- **Margin Expansion**: EBITDA margin to improve through operating leverage and disciplined cost management. 


**【CEO Summary Section】**
- **Resilient Q1 Performance**: Contract Value (CV) grew 7% YoY, with revenue, EBITDA, EPS, and free cash flow exceeding expectations. 
- **Research Dominance**: Research remains the largest segment, with CV up 7% (8% excluding U.S. federal). Tech vendor CV growth accelerated, driven by large vendors. 
- **Diversified Growth**: GBS (non-IT sales) CV rose 11%, Consulting revenue increased 5%, and Contract Optimization revenue surged 38%. 
- **AI and Client Value**: Gartner leverages AI internally and advises thousands of enterprises on AI adoption, positioning for long-term growth. 
- **Future Outlook**: Targeting 12-16% research CV growth in a normalized macro environment, with EBITDA margin expansion through operating leverage. 

**【CFO Financial Commentary】**
- **Q1 Financial Highlights**: 
  - Revenue: $1.5B (+4% YoY, +6% FX-neutral) 
  - EBITDA: $385M (+1% YoY, +3% FX-neutral) 
  - Adjusted EPS: $2.98 (+2% YoY) 
  - Free Cash Flow: $288M (+73% YoY) 
- **Segment Performance**: 
  - Research: Subscription CV +8% FX-neutral, GTS (+7% ex-federal), GBS (+11%). 
  - Consulting: Backlog +16% YoY, driven by multiyear contracts. 
  - Contract Optimization: Revenue +38% YoY. 
- **Expense Management**: SG&A up 7% YoY (FX-neutral), offset by revenue growth and cost control. 
- **2025 Guidance Update**: 
  - Research Revenue: $5.34B (4% FX-neutral growth) 
  - EBITDA: $1.535B (+$25M from prior guidance) 
  - Free Cash Flow: $1.145B (137% of GAAP net income) 

**【Q&A Key Takeaways】**
- **U.S. Federal Impact**: 40% of 2025 federal contracts renewed in Q1, with ~$30M termination notices. Excluding federal, CV growth 8%. 
- **Sales Strategy**: Mid-single-digit headcount growth outside federal, preserving capacity for future reacceleration. 
- **AI Rollout**: Internal AI tool for content navigation to be piloted externally, with focus on accuracy. 
- **Margin Outlook**: EBITDA margin expansion in 2025, driven by operating leverage and expense discipline. 
- **FX Benefits**: 50bps revenue growth and 130bps EBITDA growth from weaker USD. 


Gartner (IT)-6 May 25-2025 Q1 Earnings call transcript

- **Q4 Strong Performance**: 8% CV growth, $1.7B revenue, $5.45 EPS, and $311M free cash flow beat expectations.
- **Tech Vendor Recovery**: 3Q consecutive acceleration in tech vendor CV growth, signaling normalization.
- **AI Leadership**: Gartner guiding enterprises on scaling AI, with internal AI initiatives driving productivity gains.
- **2025 Growth Outlook**: 6% FX-neutral revenue growth, $1.51B EBITDA, and $11.45 EPS, supported by disciplined capital allocation.
- **Share Buybacks**: $735M repurchased in 2024; plans to remain opportunistic with $900M remaining authorization.


**【CEO Summary Section】**
- Q4 contract value (CV) grew 8%, with revenue, EBITDA, EPS, and free cash flow exceeding expectations.
- Tech vendor CV growth accelerated for the third consecutive quarter, driven by improved execution and market recovery.
- Emphasis on AI innovation to help clients scale AI adoption, with Gartner positioned as the leading advisor for enterprise decision-making.
- 2025 outlook includes modest margin expansion and double-digit revenue growth over the long term, supported by disciplined capital allocation and share repurchases.

**【CFO Financial Commentary】**
- Q4 revenue: $1.7 billion (8% YoY growth, 6% FX-neutral).
- EBITDA: $417 million (8% YoY growth, 9% FX-neutral).
- Adjusted EPS: $5.45 (79% YoY increase).
- Free cash flow: $311 million (59% YoY growth).
- 2025 guidance: 
  - Research revenue: $5.365 billion (6% FX-neutral growth).
  - Conferences revenue: $625 million (10% FX-neutral growth).
  - Consulting revenue: $565 million (2% FX-neutral growth).
  - EBITDA: $1.51 billion (23% margin).
  - Adjusted EPS: $11.45.
  - Free cash flow: $1.14 billion.
- FX headwind expected to be 2 percentage points for 2025 revenue and EBITDA growth.

**【Q&A Key Highlights】**
- **Tech Vendor Recovery**: Gene Hall noted tech vendor CV growth has accelerated for three consecutive quarters, with normalization expected over the next several quarters.
- **Public Sector Strategy**: Gartner serves 74 countries in the public sector, with 85% of U.S. federal CV in GTS. Management remains cautious on near-term hiring but confident in long-term opportunities.
- **AI Adoption**: Gartner is helping tens of thousands of executives scale AI, with internal AI initiatives driving productivity improvements across the organization.
- **Share Buybacks**: $735 million repurchased in 2024; plans to remain opportunistic with $900 million remaining authorization, focusing on dilution offset.
- **Sales Growth**: GTS quota-bearing headcount to grow mid-single digits in 2025, GBS to grow double digits, driven by pipeline strength and market demand.


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