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GARTNER INC

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Business Summary

Gartner, Inc. operates in the market for actionable, objective business and technology insights, serving over 13,000 enterprises in approximately 90 countries and territories across every major function, geography, industry and sector. The company delivers its products and services globally through three reportable segments: Business and Technology Insights (Insights), Conferences, and Consulting. Enterprise leaders face pressure to stay ahead amidst digital transformation, cybersecurity risk mitigation, supply chain disruptions, and large-scale regulatory changes, and Gartner positions itself as a trusted advisor providing expert-led, practitioner-sourced, and data-driven research to drive smarter decisions on mission-critical priorities.

Gartner believes its principal competitive differentiators include superior content, its leading brand name built over more than 40 years, a global footprint with clients in approximately 90 countries and territories on six continents, insights that create connections through a global community of experts, an experienced management team with long tenure, substantial operating leverage in its business model allowing distribution of intellectual property across multiple platforms, and a vast network of more than 2,400 business and technology experts and 920 experienced consultants located around the world. The company faces competition from independent providers of information products and services, consulting firms, other data and information providers, electronic and print media companies, and free internet sources, and anticipates encountering more competition with increased adoption of AI services.

Gartner generates revenue through a diversified business model that leverages its differentiated intellectual capital across multiple platforms. The foundation is its ability to create and distribute proprietary content via published reports, interactive tools, facilitated peer networking, briefings, and direct communications. Revenue is derived from subscription-based insights services, conferences including the Gartner Symposium/Xpo series, and consulting and advisory services. The company seeks to increase business volume and penetration with its most valuable clients by expanding relationships with strategically relevant insights, and also seeks to extend the Gartner brand to develop new client relationships, augment sales capacity, and expand into new markets globally.

The Insights segment delivers independent, objective insights to leaders across an enterprise through subscription services that include on-demand access to published content, data and benchmarks, and direct access to a network of more than 2,400 business and technology experts located around the globe. Within Insights, Global Technology Sales sells to users and providers of technology, while Global Business Sales sells to all other functional leaders. Insights revenues were $5,072,570,000 in 2025, representing approximately 78% of total revenues. The segment had a gross contribution margin of 77% in both 2025 and 2024. Contract value was $5,155,000,000 at December 31, 2025 on a foreign exchange neutral basis. At December 31, 2025, 77% of Insights subscription contracts were multi-year. The Conferences segment provides executives and teams the opportunity to learn, share and network through the Gartner Symposium/Xpo series and other industry-leading conferences. In 2025, Gartner held 53 in-person conferences with more than 83,000 attendees, including 12 Symposiums/Xpos. Conferences revenues were $644,743,000 in 2025, an increase of 11% compared to 2024 on a reported basis, with a gross contribution margin of 50% in 2025 versus 48% in 2024. The Consulting segment serves senior executives leading technology-driven strategic initiatives through custom analysis and on-the-ground support. Consulting revenues were $552,499,000 in 2025, a decrease of 1% compared to 2024 on a reported basis, with a gross contribution margin of 34% in 2025 versus 36% in 2024. Backlog was $173,700,000 at December 31, 2025.

During the year ended December 31, 2025, a goodwill impairment loss of $150,000,000 was recognized in the Digital Markets reporting unit due to ongoing weakness in the market and changes in the Company's internal organization structure prompting a revision to the long-term earnings forecast. On January 29, 2026, the Company entered into a definitive agreement to sell its Digital Markets business, and on February 5, 2026, completed the sale for approximately $110,000,000 , prior to customary purchase price adjustments. As of December 31, 2025, the assets and liabilities of Digital Markets were considered held for sale, resulting in $106,361,000 of assets held for sale and $20,503,000 of liabilities held for sale on the Consolidated Balance Sheet. During 2025, the Company repurchased 7,042,314 shares of its common stock for an aggregate purchase price of approximately $2,004,251,000 . In November 2025, the Company issued $350,000,000 of 4.950% Senior Notes due 2031 and $450,000,000 of 5.600% Senior Notes due 2035, using a portion of the net proceeds to repay the $274,400,000 then outstanding under the 2024 Credit Agreement. In August 2025, the Company launched AskGartner, a new AI-powered tool. The Company also made an installment payment of $24,000,000 during the second quarter of 2025 in consideration for a lease amendment entered into in the fourth quarter of 2024.

Total revenues for 2025 were $6,497,226,000 , an increase of 4% compared to 2024 on a reported basis and 3% excluding the foreign currency impact. Net income decreased to $729,231,000 in 2025 from $1,253,715,000 in 2024, a decrease of 42% . Diluted earnings per share was $9.65 in 2025 compared to $16.00 in 2024. The decrease in net income was primarily due to the $150,000,000 goodwill impairment loss, the $300,000,000 gain on event cancellation insurance claims in 2024, an increase in operating expenses, and a higher provision for income taxes, partially offset by an increase in revenues. Cash provided by operating activities was $1,290,365,000 in 2025 compared to $1,484,922,000 in 2024. As of December 31, 2025, the Company had $1,722,521,000 of cash and cash equivalents and approximately $1,000,000,000 of available borrowing capacity on its revolving credit facility.

Business Outlook

A critical growth vector is the expansion of the Insights subscription business, which constituted approximately 78% of total revenues in 2025. The company aims to increase business volume and penetration with its most valuable clients by expanding relationships through strategically relevant insights. Contract value, a key forward-looking indicator, was $5,155,000,000 at December 31, 2025 on a foreign exchange neutral basis, with Global Business Sales contract value increasing by 3% year-over-year. The company also seeks to extend the Gartner brand to develop new client relationships, augment sales capacity, and expand into new markets around the world, creating additional revenue streams through more effective packaging, campaigning, and cross-selling of products and services.

Another growth vector is the continued development and deployment of AI technologies. In August 2025, the Company launched AskGartner, a new AI-powered tool designed to give clients an improved user experience by providing faster, more efficient access to insights. The company acknowledges that developing, testing, and deploying AI systems requires additional investment and increased costs, including costs related to developing talent. The company also notes that its competitors or other third parties may incorporate AI into their offerings more effectively or quickly, which could impair its ability to compete. The company faces risks related to the regulation of AI, such as the EU Artificial Intelligence Act which entered into force on August 1, 2024, and may impose significant costs and necessitate changes to certain business practices.

The filing discusses margin trajectory primarily through segment gross contribution margins. The Insights gross contribution margin was 77% in both 2025 and 2024. The Conferences gross contribution margin improved to 50% in 2025 from 48% in 2024, primarily due to an increase in revenue, partially offset by an increase in conference-related expenses. The Consulting gross contribution margin decreased to 34% in 2025 from 36% in 2024, primarily due to a decrease in revenue and an increase in personnel expenses. Cost of services and product development as a percent of revenues was 32% for both 2025 and 2024. Selling, general and administrative expense as a percent of revenues was 47% in 2025 compared to 46% in 2024. The company faces risks from increasing wage inflation which may affect profit margin as it strives to provide competitive compensation packages.

The company's operational outlook includes a focus on technology infrastructure investments. The company has invested substantial amounts and expects to continue investing in access to data centers and equipment, moving more workload into cloud services, and upgrading technology and network infrastructure to handle increased traffic on its websites and deliver products and services through emerging channels such as mobile applications. The company operates under a hybrid working environment, meaning most employees have the option to work remotely at least some of the time, and believes its current real estate footprint is sufficient to support future growth. The company has moved to a global hoteling model to better manage its footprint and reduce operating expenses. At December 31, 2025, the company had 20,244 employees globally, 9,994 of which were outside of the U.S.

Capital allocation is discussed through share repurchases and debt management. The Board authorized incremental share repurchases of up to an aggregate additional $5,800,000,000 of the Company's common stock from February 2021 to September 2025, with $745,347,000 remaining available as of December 31, 2025. The Board also authorized incremental share repurchases of up to an additional $500,000,000 in January 2026. During 2025, the Company used $2,004,251,000 in cash for share repurchases. In November 2025, the Company issued $350,000,000 of 4.950% Senior Notes due 2031 and $450,000,000 of 5.600% Senior Notes due 2035. The company does not currently pay cash dividends on its common stock. Capital expenditures for additions to property, equipment and leasehold improvements were $115,142,000 in 2025.

A significant headwind explicitly flagged by management is the impact of U.S. federal government spending reductions. The company's Insights contract value with the US federal government was approximately $126,000,000 at December 31, 2025, and less than half of the December 31, 2024 Insights contract value was retained in 2025. The company has received notices of termination-for-convenience from various US government agencies for approximately $3,000,000 of contracts primarily scheduled to expire in the first quarter of 2026. In 2025, revenues with U.S. federal government agencies declined approximately $58,000,000 year over year, primarily due to reductions in discretionary spending. The company notes that further significant reduction in federal government spending, a partial or full federal government shutdown, or a change in budgetary priorities could have a material adverse impact.

Another structural headwind is the impact of global economic conditions. The filing notes that in its recent report, Global Economic Prospects, January 2026, the World Bank noted growth is projected to ease to 2.6% , driven by a notable slowdown in demand for traded goods and softening domestic demand in many major economies. The World Bank expects growth to pick up slightly to 2.7% in 2027. The report notes that near-term risks are tilted to the downside, observing growth could falter if trade tensions escalate, barriers rise further, or financial market sentiment deteriorates amid asset price declines, fiscal concerns, or inflation surprises. A downturn in growth could negatively and materially affect future demand for the company's products and services. The company also faces risks from foreign currency volatility, as a significant portion of revenues are derived from sales outside the United States and are typically transacted in local currencies.

Risk Factors

The company faces material risks from its dependence on renewals of subscription-based Insights services, which constituted approximately 78% of total revenues in 2025 and 77% in 2024; while the Insights client retention rate was 85% in 2025, any failure to maintain this rate could lead to a decrease in revenues. A significant and specific risk is the exposure to U.S. federal government spending reductions, with Insights contract value with the US federal government at approximately $126,000,000 at December 31, 2025, less than half of the prior year's contract value retained, and revenues with U.S. federal government agencies declining approximately $58,000,000 year over year. The company's balance sheet includes significant goodwill and intangible assets representing approximately 38% of total assets at December 31, 2025, and a goodwill impairment loss of $150,000,000 was recognized in 2025 for the Digital Markets reporting unit, indicating risk of further impairment. The company faces risks related to the rapid evolution of technology, particularly artificial intelligence, and anticipates encountering more competition with increased adoption of AI services, while also facing potential costs and compliance burdens from evolving AI regulations such as the EU Artificial Intelligence Act which entered into force on August 1, 2024. The company's outstanding debt obligations of $3,005,000,000 in principal as of December 31, 2025 could negatively impact financial condition and future operating results, and the company may require additional cash resources which may not be available on favorable terms.

Management Priorities

Management's message emphasizes the company's role as a trusted advisor delivering actionable, objective business and technology insights that drive smarter decisions and stronger performance on mission-critical priorities. The strategic priorities emphasized for the period ahead include focusing on creating actionable insights for executive leaders and their teams, delivering innovative and highly differentiated product offerings, building a strong sales capability, providing world class client service with a focus on client engagement and retention, and continuously improving operational effectiveness. Management highlights the company's diversified business model that provides multiple entry points and sources of value for clients, leading to increased client spending on insights, conferences, and consulting services. A critical part of the long-term strategy is to increase business volume and penetration with the most valuable clients by expanding relationships with strategically relevant insights. The company also seeks to extend the Gartner brand name to develop new client relationships, augment sales capacity, and expand into new markets around the world. Management notes that the fundamentals of the strategy include these elements and that the company had total revenues of $6,500,000,000 in 2025, an increase of 4% compared to 2024 on a reported basis. Net income decreased to $729,231,000 in 2025 from $1,253,715,000 in 2024, and diluted earnings per share was $9.65 in 2025 compared to $16.00 in 2024, with the decrease primarily due to the goodwill impairment loss, the gain on event cancellation insurance claims in 2024, and an increase in the provision for income taxes.

View Source Annual Report on SEC.gov ↗

References

  1. [1] Item 7, MD&A — Segment Results; Item 8, Note 16 — Segment Information
  2. [2] Item 7, MD&A — Segment Results
  3. [3] Item 7, MD&A — Segment Results
  4. [4] Item 1, Business — Products and Services
  5. [5] Item 1, Business — Products and Services; Item 7, MD&A — Segment Results
  6. [6] Item 1, Business — Products and Services; Item 7, MD&A — Segment Results
  7. [7] Item 1, Business — Products and Services
  8. [8] Item 7, MD&A — Segment Results; Item 8, Note 16 — Segment Information
  9. [9] Item 7, MD&A — Segment Results
  10. [10] Item 7, MD&A — Segment Results
  11. [11] Item 7, MD&A — Segment Results
  12. [12] Item 7, MD&A — Segment Results; Item 8, Note 16 — Segment Information
  13. [13] Item 7, MD&A — Segment Results
  14. [14] Item 7, MD&A — Segment Results
  15. [15] Item 7, MD&A — Segment Results
  16. [16] Item 7, MD&A — Segment Results
  17. [17] Item 7, MD&A — Critical Accounting Policies; Item 8, Note 1 — Business and Significant Accounting Policies; Item 8, Note 3 — Goodwill and Intangible Assets
  18. [18] Item 7, MD&A — Recent Developments; Item 8, Note 19 — Subsequent Events
  19. [19] Item 7, MD&A — Recent Developments; Item 8, Consolidated Balance Sheets
  20. [20] Item 7, MD&A — Recent Developments; Item 8, Consolidated Balance Sheets
  21. [21] Item 8, Note 8 — Stockholders' Equity
  22. [22] Item 7, MD&A — Liquidity and Capital Resources; Item 8, Note 8 — Stockholders' Equity
  23. [23] Item 7, MD&A — Liquidity and Capital Resources; Item 8, Note 6 — Debt
  24. [24] Item 7, MD&A — Liquidity and Capital Resources; Item 8, Note 6 — Debt
  25. [25] Item 7, MD&A — Liquidity and Capital Resources; Item 8, Note 6 — Debt
  26. [26] Item 7, MD&A — Liquidity and Capital Resources; Item 8, Note 7 — Leases
  27. [27] Item 7, MD&A — Consolidated Results; Item 8, Consolidated Statements of Operations
  28. [28] Item 7, MD&A — Consolidated Results
  29. [29] Item 7, MD&A — Executive Summary of Operations and Financial Position
  30. [30] Item 7, MD&A — Consolidated Results; Item 8, Consolidated Statements of Operations
  31. [31] Item 7, MD&A — Consolidated Results; Item 8, Consolidated Statements of Operations
  32. [32] Item 7, MD&A — Consolidated Results
  33. [33] Item 7, MD&A — Consolidated Results; Item 8, Consolidated Statements of Operations
  34. [34] Item 7, MD&A — Consolidated Results; Item 8, Consolidated Statements of Operations
  35. [35] Item 7, MD&A — Consolidated Results
  36. [36] Item 7, MD&A — Consolidated Results; Item 8, Note 1 — Business and Significant Accounting Policies
  37. [37] Item 7, MD&A — Liquidity and Capital Resources; Item 8, Consolidated Statements of Cash Flows
  38. [38] Item 7, MD&A — Liquidity and Capital Resources; Item 8, Consolidated Statements of Cash Flows
  39. [39] Item 7, MD&A — Liquidity and Capital Resources; Item 8, Consolidated Balance Sheets
  40. [40] Item 7, MD&A — Liquidity and Capital Resources; Item 8, Note 6 — Debt
  41. [41] Item 1A, Risk Factors — Strategic and Operational Risks
  42. [42] Item 7, MD&A — Segment Results
  43. [43] Item 7, MD&A — Segment Results
  44. [44] Item 7, MD&A — Segment Results
  45. [45] Item 7, MD&A — Segment Results
  46. [46] Item 7, MD&A — Segment Results
  47. [47] Item 7, MD&A — Segment Results
  48. [48] Item 7, MD&A — Segment Results
  49. [49] Item 7, MD&A — Consolidated Results
  50. [50] Item 7, MD&A — Consolidated Results
  51. [51] Item 7, MD&A — Consolidated Results
  52. [52] Item 1, Business — Human Capital Management
  53. [53] Item 1, Business — Human Capital Management
  54. [54] Item 5, Market for Registrant's Common Equity; Item 8, Note 8 — Stockholders' Equity
  55. [55] Item 5, Market for Registrant's Common Equity
  56. [56] Item 5, Market for Registrant's Common Equity; Item 8, Note 8 — Stockholders' Equity
  57. [57] Item 7, MD&A — Liquidity and Capital Resources; Item 8, Note 8 — Stockholders' Equity
  58. [58] Item 7, MD&A — Liquidity and Capital Resources; Item 8, Note 6 — Debt
  59. [59] Item 7, MD&A — Liquidity and Capital Resources; Item 8, Note 6 — Debt
  60. [60] Item 7, MD&A — Liquidity and Capital Resources; Item 8, Consolidated Statements of Cash Flows
  61. [61] Item 7, MD&A — Recent Developments
  62. [62] Item 7, MD&A — Recent Developments
  63. [63] Item 1A, Risk Factors — Strategic and Operational Risks
  64. [64] Item 1A, Risk Factors — Macroeconomic and Industry Risks
  65. [65] Item 1A, Risk Factors — Macroeconomic and Industry Risks
  66. [66] Item 1A, Risk Factors — Strategic and Operational Risks
  67. [67] Item 1A, Risk Factors — Strategic and Operational Risks
  68. [68] Item 1A, Risk Factors — Strategic and Operational Risks; Item 7, MD&A — Segment Results
  69. [69] Item 7, MD&A — Recent Developments
  70. [70] Item 1A, Risk Factors — Strategic and Operational Risks
  71. [71] Item 1A, Risk Factors — Strategic and Operational Risks
  72. [72] Item 1A, Risk Factors — Strategic and Operational Risks; Item 8, Note 3 — Goodwill and Intangible Assets
  73. [73] Item 1A, Risk Factors — Strategic and Operational Risks; Item 8, Note 6 — Debt
  74. [74] Item 7, MD&A — Executive Summary of Operations and Financial Position
  75. [75] Item 7, MD&A — Executive Summary of Operations and Financial Position
  76. [76] Item 7, MD&A — Executive Summary of Operations and Financial Position
  77. [77] Item 7, MD&A — Executive Summary of Operations and Financial Position
  78. [78] Item 7, MD&A — Executive Summary of Operations and Financial Position
  79. [79] Item 7, MD&A — Executive Summary of Operations and Financial Position
  80. [80] Item 8, Consolidated Statements of Operations
  81. [81] Item 8, Consolidated Statements of Operations
  82. [82] Item 8, Consolidated Statements of Operations
  83. [83] Item 8, Consolidated Statements of Operations
  84. [84] Item 8, Consolidated Statements of Operations
  85. [85] Item 8, Consolidated Statements of Operations
  86. [86] Item 8, Consolidated Statements of Operations
  87. [87] Item 8, Consolidated Statements of Operations
  88. [88] Item 7, MD&A — Consolidated Results
  89. [89] Item 7, MD&A — Consolidated Results; Item 8, Note 3 — Goodwill and Intangible Assets
  90. [90] Item 7, MD&A — Segment Results
  91. [91] Item 7, MD&A — Segment Results
  92. [92] Item 7, MD&A — Segment Results
  93. [93] Item 7, MD&A — Segment Results
  94. [94] Item 7, MD&A — Segment Results
  95. [95] Item 8, Consolidated Statements of Cash Flows
  96. [96] Item 8, Consolidated Statements of Cash Flows
  97. [97] Item 8, Consolidated Balance Sheets
  98. [98] Item 8, Note 6 — Debt
  99. [99] Item 8, Consolidated Statements of Operations
  100. [100] Item 8, Consolidated Statements of Operations
  101. [101] Item 7, MD&A — Consolidated Results; Item 8, Note 12 — Income Taxes
  102. [102] Item 7, MD&A — Consolidated Results; Item 8, Note 12 — Income Taxes
  103. [103] Item 7, MD&A — Consolidated Results; Item 8, Note 12 — Income Taxes
  104. [104] Item 8, Consolidated Statements of Operations
  105. [105] Item 8, Consolidated Statements of Operations

Analysis on 6/11/2026