Gartner Q4 Revenues Rise 2% to $1.75B; Announces $2B Share Buyback
Gartner’s Q4 revenues rose 2% year-over-year to $1.753 billion while diluted EPS fell 34% to $3.36 as net income declined 39% to $242 million. The company repurchased $2 billion of shares, issued its first investment-grade bond and agreed to divest Digital Markets, expecting contract value growth to accelerate in 2026.
1. Q4 2025 Financial Results
Gartner’s fourth‐quarter 2025 revenue reached $1.753 billion, up 2% year-over-year on a reported basis and flat on an FX-neutral basis. GAAP net income declined 39% to $242 million, driven primarily by a 34% drop in diluted EPS to $3.36. Adjusted EBITDA rose 5% to $436 million, reflecting improved operating leverage in its Insights business. Free cash flow was $271 million, down 13% from the prior year, as working capital needs increased late in the quarter.
2. Segment Performance Breakdown
In Q4, the Insights segment generated $1.283 billion in revenue, up 3% (1% FX-neutral), with gross contribution of $989 million and a 77% contribution margin. Conferences revenue climbed 14% to $286 million (11% FX-neutral), while Consulting fell 13% to $134 million (15% FX-neutral) amid reduced project activity. Other revenues declined 22% to $50 million, driven by lower volume in ancillary services. Global Technology Sales contract value held steady at $3.9 billion, while Global Business Sales CV increased 3% to $1.2 billion on an FX-neutral basis.
3. 2026 Guidance and Outlook
Management expects contract value growth to accelerate through 2026, backed by resilient subscription renewal rates above 90% and continued expansion into AI-powered advisory services. The company forecast full-year revenue growth in the mid-single-digit range on a reported basis, with adjusted EPS projected above $15 per share. Capital allocation plans include up to $1 billion in share repurchases and continued investment in research to support the rollout of new digital platforms for enterprise clients.
4. Balance Sheet and Capital Allocation
In 2025 Gartner repurchased $2 billion of stock and completed its first investment-grade bond issuance, increasing financial flexibility. The company entered a definitive agreement to divest its Digital Markets business, expected to close in mid-2026. Two new independent directors were appointed to strengthen governance. As of December 31, 2025, total debt stood at $3.1 billion, with net leverage at 2.5x adjusted EBITDA, leaving headroom under its credit facility for strategic acquisitions or opportunistic share buybacks.