Gartner, Inc.
IT
Market Cap$19.48B
Close$
Earnings Call Q2 2025
August 5, 2025 - AI Summary
Strong Q2 Financial Performance: Gartner reported Q2 revenue of $1.7 billion, a 6% increase year-over-year (YOY) as reported, and 5% FX-neutral. Adjusted EBITDA rose 7% to $443 million, and adjusted EPS was $3.53, an increase of 10% YOY. Free cash flow also demonstrated strength at $347 million, up 2% YOY.
Challenges in Government Contracts: Significant challenges arose from measures associated with the U.S. federal government (DOGE), which hindered procurement processes, resulting in a substantial negative impact on new business and renewals. Year-to-date dollar retention in the U.S. federal sector sat at approximately 47%, indicating a struggle in securing new contracts despite strong demand.
Contract Value Growth Projections: Contract value (CV) grew 5% YOY, with an expectation of low to mid-single-digit CV growth for the remainder of 2025, primarily driven by improvements in the U.S. federal business environment, tariff-related spending normalization, and the return of tech vendor investments. The company's target for 2026 projects a rebound to high single-digit growth, moving potentially towards double-digit growth by 2027.
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$496.81
93.2% upside
Current Fair Value
93.2% upsideUndervalued by 93.2% based on the discounted cash flow analysis.
Share Statistics
| Market cap | $19.48 Billion |
|---|---|
| Enterprise Value | $22.84 Billion |
| Dividend Yield | $- (-) |
| Earnings per Share | $16.12 |
| Beta | 1.2 |
| Outstanding Shares | 77,157,000 |
Return
| Return on Equity | - |
|---|---|
| Return on Assets | - |
| Return on Invested Capital | - |
Valuation & Multiples
| P/E Ratio | 15.68 |
|---|---|
| PEG | 320.43 |
| Price to Sales | 3.1 |
| Price to Book Ratio | 13.54 |
| Enterprise Value to Revenue | 3.56 |
| Enterprise Value to EBIT | 19.66 |
| Enterprise Value to Net Income | 18 |
| Total Debt to Enterprise | 0.24 |
| Debt to Equity | 3.62 |
Revenue Sources
No data
Insider Trades
ESG Score
No data
About Gartner, Inc.
16,724 employees
CEO: Eugene Hall Gartner, Inc. is the world's leading research and advisory company and a member of the S&P 500. Gartner equips business leaders with indispensable insights, advice and tools to achieve their mission-critical priorities and build the succ...