Consulting Firm Gartner Q1 Earnings Beat Estimates As Contract Value Climbs

Gartner Inc. (NYSE:IT) reported first-quarter FY25 revenue growth of 4.2% year-on-year to $1.53 billion, which is in line with the analyst consensus estimate.

Global Contract Value climbed 6.7% to $5.1 billion. Global Technology Sales Contract Value (GTS CV) increased 5.5% Y/Y to $3.9 billion and Global Business Sales Contract Value (GBS CV) jumped 10.8% to $1.2 billion.

Selling, general and administrative expenses increased 5.8% to $730.3 million. Operating income for the quarter increased 1.4% to $278 million and the operating margin contracted 50 basis points to 18.1%.

Also Read: Peloton Faces Subscriber Setbacks, Tariff Troubles Despite Profit Push

Adjusted EBITDA for the quarter increased 0.7% to $385 million with an adjusted EBITDA margin of 24.9%. Adjusted EPS of $2.98 beat the consensus estimate of $2.72.

The company held $2.1 billion in cash and equivalents as of March 31, 2025.

Operating cash flow for the quarter was $314 million, with a free cash flow of $288 million.

“In a dynamic world, we are managing our costs to deliver Adjusted EBITDA Margin ahead of our initial guidance while also investing for future growth,” Gene Hall, Gartner's CEO said. “We continue to provide significant value to our clients and will emerge from the current environment even stronger."

Price Action: IT shares traded lower by 0.23% at $426.00 in premarket at last check Tuesday.

Read Next: Footwear Giant Skechers To Go Private At 30% Premium In PE Deal

Photo: Shutterstock