Gartner (NYSE:IT) reported fourth-quarter and full-year 2025 results that management said came in ahead of expectations, citing stronger-than-anticipated revenue, profitability, earnings, and free cash flow. On the company’s earnings call, Chairman and CEO Gene Hall emphasized disciplined expense management and client-focused execution in a “much tougher selling environment,” while CFO Craig Safian detailed segment performance and outlined Gartner’s 2026 outlook, excluding the Digital Markets business that the company has agreed to divest.
Q4 and full-year results top expectations
Safian said fourth-quarter revenue was $1.8 billion, up 2% year-over-year as reported and flat FX-neutral. Adjusted EBITDA was $436 million, up 5% as reported (and 1% FX-neutral), with EBITDA margin of 24.9%, about 60 basis points higher than the year-ago quarter. Adjusted EPS was $3.94, and free cash flow was $271 million.
External headwinds and elongated buying cycles
Hall framed 2025 as a “unique year” shaped by multiple external forces that increased scrutiny and extended buying cycles. He pointed to Department of Government Efficiency (DOGE)-related initiatives affecting U.S. federal clients, evolving trade policies and tariff complexity for certain enterprises, funding changes across state and local government and education, shifting conditions for tech companies not in or adjacent to AI, and “country-specific factors” in several geographies.
Hall said executives have responded to heightened volatility by “slowing and deferring everything possible,” raising the bar for value and making sales execution more challenging. However, he argued the same environment increases demand for Gartner’s guidance, calling the company “an insights business” that helps leaders address mission-critical priorities.
Transformation of Business and Technology Insights
A central theme of the call was Gartner’s ongoing transformation in Business and Technology Insights (BTI), aimed at driving higher client engagement—something Hall said correlates with higher retention. Hall described a four-part program focused on impact, volume, timeliness, and user experience:
- Impact: Gartner expanded AI-related research, noting more than 6,000 AI documents in its library, more than 1,000 documented use cases, more than 200,000 in-depth client conversations on AI in 2025, and more than 500,000 AI-related questions answered through Ask Gartner.
- Volume: The company said its active insights library grew by about 50% by year-end 2025, supported by automation, process streamlining, and analyst upskilling. Hall also described a neural network-based AI model designed to identify trending client priorities.
- Timeliness: Gartner introduced new insight types designed to be produced the same day as major events (for example, security breaches). For certain high-value formats such as Magic Quadrants, Hall said average creation time has been reduced by 75% compared with 2024.
- User experience: Hall said clients have historically struggled to find relevant research, and Gartner is using AI-driven tools to improve discovery. Ask Gartner began rolling out in August 2025 and was fully rolled out in October; Hall said licensed users who used Ask Gartner had “substantially higher renewal rates” than those who did not, even at similar engagement levels.
Management also highlighted evolving formats for delivering insights, including continued investment in destination conferences and the launch of “Gartner C-Level Communities,” described as local, peer-driven, one-day events designed to broaden access for executives who cannot attend destination conferences.
Segment performance and contract value trends
Safian reiterated that Insights is Gartner’s largest segment, emphasizing its subscription model, retention, upfront billing, and cash flow characteristics. Fourth-quarter Insights revenue rose 3% as reported (1% FX-neutral), with contribution margin of 77%. Full-year Insights revenue increased 5% as reported (4% FX-neutral), and full-year contribution margin was 77%.
Companywide fourth-quarter contract value (CV) grew 1% year-over-year. Safian said that outside the U.S. federal government, CV grew 4%, and global net contract value increase (NCVI) outside U.S. federal was positive $147 million. At Dec. 31, Gartner reported $126 million of U.S. federal CV, after most federal contracts came up for renewal during 2025.
Within Global Technology Sales (GTS), CV was $3.9 billion, about flat year-over-year, while CV outside the U.S. federal business grew 4%. Tech vendor CV increased at mid-single digit rates, with services and software growing low double-digit or high single-digit rates. GTS wallet retention was 96% in the quarter, while GTS new business of more than $300 million was down about 5% outside the U.S. federal government.
Global Business Sales (GBS) contract value was $1.2 billion, up 3%, and up about 6% outside the U.S. federal business. Safian said growth was led by sales, supply chain, and legal practices. GBS wallet retention was 99%, and outside the U.S. federal business, wallet retention was over 100%. GBS new business of more than $100 million was down 4% versus last year.
In other segments, fourth-quarter conferences revenue was $286 million, with same-conference revenue growth around 8% FX-neutral and contribution margin of 51%. Full-year conferences revenue increased 11% to $645 million (about 9% FX-neutral). Consulting revenue was $134 million in Q4 versus $153 million a year earlier; full-year consulting revenue was $552 million versus $559 million in 2024.
Capital allocation, Digital Markets divestiture, and 2026 outlook
Both executives highlighted shareholder actions in 2025, including roughly $2 billion of share repurchases. Safian said Gartner ended Q4 with about $1.7 billion in cash and $3.0 billion of debt, with gross debt to trailing 12-month EBITDA of 1.9x. The company also completed its first investment-grade rated bond offering, which Safian said increased leverage and expanded repurchase capacity. Gartner’s board refreshed repurchase authorization, bringing the total to about $1.2 billion.
Management also discussed the definitive agreement signed to sell the Digital Markets business, describing the move as a way to sharpen focus on core insights. Hall said the decision reflected Gartner’s view that the external environment is likely to remain disrupted and that the company should prioritize BTI transformation and engagement-driven retention.
For 2026, Gartner provided guidance excluding Digital Markets. On an FX-neutral basis, the company expects:
- Insights revenue of $5.19 billion or more (about 1% FX-neutral growth)
- Conferences revenue of $695 million or more (about 7% FX-neutral growth)
- Consulting revenue of $570 million or more (about 3% FX-neutral growth)
- Consolidated revenue of $6.45 billion or more (about 2% FX-neutral growth)
- Adjusted EBITDA of $1.515 billion or more (margin of 23.5% or more)
- Adjusted EPS of $12.30 or more
- Free cash flow of $1.135 billion or more
Safian said the EBITDA margin outlook reflects investment in analysts, AI, customer experience, and sales capabilities, and he characterized 23.5% as a new baseline with potential for future expansion as contract value acceleration translates into revenue over time. Management repeatedly emphasized expectations for CV growth to accelerate through 2026, driven not only by easing U.S. federal headwinds but also by the ongoing transformation initiatives, which executives said should have greater impact in the second half of the year and beyond.
About Gartner (NYSE:IT)
Gartner, Inc is a global research and advisory firm that provides insights, advice and tools for leaders in IT, finance, HR, customer service and other business functions. Founded in 1979 and headquartered in Stamford, Connecticut, Gartner specializes in helping organizations make informed decisions about technology, operations and strategy through a combination of published research, advisory services, consulting, executive programs and events.
The company’s offerings include proprietary research reports, market forecasts, and analytical frameworks that are widely used by technology buyers and vendors.
