Here we go again…? Various metrics for Gartner’s revenue, contract value, and client retention are up, but not to the historical Gartner standard. Such was also the case for Gartner’s Q2 results, and thereafter the stock lost about half its value in a matter of days. As I write this, Gartner stock is down about 7%, so it doesn’t seem like calamity is nigh. A key difference this round is that earnings per share (EPS) came in about 13% better than analysts’ expectations, giving Gartner the confidence to raise its full-year revenue guidance.
Gartner Q3 2025 Earnings: What You Need to Know
- Revenue was up 3% year-over-year, with research-specific revenue rising 5% year-over-year. For context, the same metrics were 6% and 4% for Q2.
- Earnings per share (EPS) landed at $2.76, about 13% better than analysts’ expectations and 10% better than Q3 2024.
- AskGartner — Gartner’s AI-based tool for accessing Gartner content — is out of beta and is available to all Gartner clients, at no additional charge.
- While they didn’t provide specifics, Gartner leadership noted that client engagement (readership of content and time spent between clients and analysts) metrics are improving quarter-over-quarter.
- Gartner repurchased $1.1 billion of Gartner stock, a record for a single quarter. This reflects that Gartner leadership is confident the stock is undervalued and poised for growth.
Key Gartner Q3 2025 Metrics
- Total Revenue: $1.5B; up 3% YoY
- Contract value: $5B; up 3% YoY
- Research (“Insights” in Gartner lingo) Revenue: $1.3B; up 5% YoY
- Consulting Revenue: $124M; down 3% YoY
- Conference Revenue: $75M; down 2% YoY
- Operating cash flow: $299M, down 49% YoY
- Sales headcount: 5,018; up 2% YoY
Gartner’s AI Strategy and Market Position
Gartner and AI
- Gartner CEO Gene Hall touted the value of Gartner’s “vast pool of proprietary data that is unique, highly differentiated, and not available in the public domain.” Specific inputs referenced by Hall included Gartner IT Key Metrics, one-on-one discussions with Gartner clients, and the reviews and ratings of Gartner Peer Insights. “All of this and more, uniquely positions Gartner as the best source for helping clients determine the right AI tools, applications, and benefits.”
- Ask Gartner is now available to all licensed users of Gartner, without any additional cost. Early evidence shows that AskGartner increases clients’ time spent with Gartner content, giving leadership confidence that the tool will improve client engagement and retention.
- Hall also noted that the average amount of content published per analyst is up 31% year over year and publishing time is down 75% year over year, thanks to internal efficiencies gained via AI.
Gartner and the Government
- With regards to its contracts with the federal government and DOGE-triggered cuts, Gartner might be past the worst part of the storm.
- Nearly all of Gartner’s federal contracts had or have renewal dates in 2025. More than 85% of those contracts have transacted in the first three quarters of 2025. Slightly less than half of that contract value was retained. Gartner is already aware of about $8 million of contracts that the government will terminate in Q4.
Double-Digit Growth Wanted
- For years, double-digit growth was the Gartner standard. It was clockwork. As with the Q2 earnings call, this round had extensive discussion about influencing factors such as tariffs, government contracts, vendor spend, and client expansion and retention.
- Gartner leadership believes revenue and contract values will grow throughout 2026, setting the company up for double-digit growth in 2027 and beyond.
- Vendor clients are part of that picture. Gartner noted a modest decline in client count from Q2 to Q3, attributing it mostly to churn from small technology vendors. Gartner leadership noted that stabilization and growth in vendor spend will contribute to Gartner’s return to double-digit growth.
