Gartner (NYSE:IT) Q2 Earnings Match Analyst Forecasts

US Stocks

Gartner, a top research and advisory firm, released its Q2 CY2025 earnings, showing strong results that align with analyst predictions. The company posted revenue of $1.69 billion, a 5.7% increase from last year, and an adjusted EPS of $3.53, beating expectations by 6.8%. These figures matter to the stock market, as they signal Gartner’s ability to deliver consistent growth and satisfy investors.

We crafted this article to give you a clear view of Gartner’s latest performance and its impact on the stock market. You will find details on revenue, earnings, strategic moves like the new AskGartner tool, and analyst forecasts for the next year.

Gartner Q2 CY2025 Earnings Breakdown

Gartner reported $1.69 billion in revenue for Q2 CY2025, up 5.7% from the same period last year. This growth matched analyst forecasts, proving the company’s steady pace. The adjusted EPS hit $3.53, topping estimates by 6.8%, a win for shareholders.

Key financial highlights include:

  1. Adjusted EBITDA: $443 million
  2. Adjusted EBITDA margin: 26.3%
  3. Operating margin: 19.4%

These metrics show Gartner runs a tight ship, balancing growth with solid profits.

Gartner’s Five-Year Track Record

Over the past five years, Gartner’s EPS has soared at a 27.6% annual rate. Compare that to its revenue growth of 8.9%, and you see a company squeezing more profit from every dollar. This focus on earnings growth appeals to stock market watchers looking for value.

The gap between EPS and revenue trends highlights Gartner’s efficiency. It’s a sign of smart management and a strong business model.

Gartner
Gartner Quarterly Revenue

Gartner’s Bold Strategic Moves

Gartner is doubling down on its stock buyback program, ramping up since Q1 CY2025 ended. Buying back shares shows confidence and returns cash to investors, a move the stock market often rewards. It’s a clear signal Gartner believes in its long-term strength.

The company also launched AskGartner, an AI-powered tool to speed up client insights. This innovation could sharpen Gartner’s edge in the advisory space. Clients get faster answers, and Gartner stays ahead of rivals.

Gartner
Gartner Year-On-Year Revenue Growth

Analyst Outlook for Gartner’s Next 12 Months

  • Revenue Growth Expected: Analysts forecast a 5.6% rise in Gartner’s revenue over the next 12 months.
  • Earnings Decline Projected: Full-year EPS is expected to fall 10.6% to $14.46.
  • Investor Caution: The dip in earnings raises concerns about profit margins.
  • Mixed Outlook: Sales are growing, but declining profits suggest operational or cost challenges.
  • Stock Market Impact: Gartner’s response to this squeeze will be key for its stock performance.
  • Pivotal Moment: The forecast marks a turning point for Gartner’s near-term financial trajectory.
Gartner
Gartner Trailing 12-Month Operating Margin (GAAP)

What This Means for Gartner’s Stock

Matching analyst forecasts in Q2 CY2025 steadies Gartner’s stock market standing. Beating EPS expectations adds a spark, hinting at upside potential. The buyback program and AskGartner rollout fuel optimism, too.

Yet the projected EPS decline looms large. Investors must weigh steady revenue against shrinking profits. Gartner’s stock could hold firm if it manages costs well.

Gartner
Gartner Trailing 12-Month EPS (Non-GAAP)

Final Thoughts

Gartner’s Q2 CY2025 results prove it can meet stock market expectations with $1.69 billion in revenue and a strong EPS beat. Moves like stock buybacks and AskGartner show a company planning for growth. Still, the expected EPS drop next year calls for caution.

We see Gartner as a solid name in the stock market, balancing progress with challenges. Its story is one of stability and ambition worth tracking.

Disclaimer:

This is for information only, not financial advice. Always do your research.