Consulting Firm Gartner Q4: Earnings Beat, Soft FY25 Guidance & More

Gartner Inc IT reported fourth-quarter sales growth of 8% year-on-year to $1.72 billion, beating the analyst consensus estimate of $1.69 billion.

Global Contract Value climbed 7.8% to $5.3 billion, Global Technology Sales Contract Value (GTS CV) increased 7% Y/Y to $4.0 billion and Global Business Sales Contract Value (GBS CV) jumped 12% to $1.2 billion.

Selling, general and administrative expenses increased 9.5% to $771.2 million. Operating income for the quarter increased 5.6% to $318 million and the operating margin contracted 40 basis points to 18.5%

Adjusted EBITDA for the quarter increased 8% to $417 million with an adjusted EBITDA margin of 24.3%. Adjusted EPS of $5.45 beat the consensus estimate of $3.25.

Operating cash flow for the quarter was $335 million, with a free cash flow of $311 million.

Gene Hall, Gartner’s Chief Executive Officer, commented, “Fourth quarter financial results were ahead of expectations. Contract value growth accelerated. Gartner delivered another strong year, providing exceptional value for our clients and shareholders, driving high single digit growth in contract value and generating almost $1.4 billion of free cash flow.”

Outlook: Gartner sees FY25 total revenue of at least $6.555 billion (consensus $6.699 billion) and adjusted EPS of at least $11.45 (estimate $13.10).

Price Action: IT shares are trading lower by 0.83% at $543.25 at the last check Tuesday.

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