Gartner Reports Q1 2025 Financial Results with Strong Free Cash Flow Growth

Gartner, Inc. reported first quarter 2025 results with revenues of $1.53 billion, up 4.2% year-over-year (5.7% FX neutral). Net income was $211 million, essentially flat versus last year, while diluted EPS rose 1.5% to $2.71. Adjusted EPS was $2.98, up 1.7%. Adjusted EBITDA grew slightly to $385 million.
Free cash flow surged 73.3% to $288 million, supported by a 66% increase in operating cash flow to $314 million. Contract value reached $5.1 billion, reflecting 6.7% FX-neutral growth. The Global Technology Sales segment rose 5.5% and Global Business Sales increased 10.8% on an FX-neutral basis.
By segment, Research revenue grew 4.2%, Conferences 3.6%, and Consulting 3.7%, all with FX-neutral growth above 5%. Gross contribution margins were strong in Research (74.5%) but lower in Conferences (37.7%) and Consulting (38.2%).
CEO Gene Hall noted that Gartner exceeded expectations, managed costs effectively, and remains focused on delivering value while investing for growth.

Gartner, Inc. (NYSE: IT) will report its financial results for first quarter 2025 before the market opens on Tuesday, May 6, 2025. The press release and earnings supplement, with accompanying financial information, will be posted on the Gartner investor website at https://investor.gartner.com.

Gartner Predicts Surge in Small Task-Specific AI Model Adoption by 2027

Gartner, Inc. projects that by 2027, small, task-specific artificial intelligence (AI) models will be used three times more than general-purpose large language models (LLMs) across organizations. The shift is driven by the need for AI systems that are more accurate, efficient, and cost-effective in business-specific tasks.

General-purpose LLMs, while powerful in broad language understanding, often fall short in domain-specific applications. “The variety of tasks in business workflows and the need for greater accuracy are driving the shift,” said Sumit Agarwal, VP Analyst at Gartner. “Smaller models can provide faster responses with lower operational and maintenance costs.”

These task-specific models are often built using techniques like retrieval-augmented generation (RAG) or fine-tuning with enterprise data, making data quality and management a strategic priority. Companies are expected to increasingly monetize their proprietary models and open them to external users, shifting from data protection to collaboration.

To implement these models effectively, Gartner recommends:
- Piloting models in high-context use cases.
- Using multiple models where single LLMs fall short.
- Investing in data preparation and workforce upskilling across technical and functional areas.

These insights are part of Gartner’s broader research in “Predicts 2025: AI-Powered Analytics Will Revolutionize Decision Making,” with further analysis to be presented at upcoming Data & Analytics Summits in São Paulo, London, Tokyo, Mumbai, and Sydney.

**Gartner Reports Strong Q4 and Full-Year 2024 Financial Results**

STAMFORD, Conn. – February 4, 2025 – Gartner, Inc. (NYSE: IT) has announced its financial results for the fourth quarter and full year of 2024. The company reported a significant increase in revenue, net income, and cash flow.

For Q4, Gartner's revenues rose to $1.7 billion, up 8% both as reported and on a foreign currency-neutral basis. Net income soared by 91% to $399 million, and adjusted EBITDA increased by 8% to $417 million. Diluted EPS grew by 94%, reaching $5.11. Free cash flow also saw a 59% rise, reaching $311 million.

For the full year 2024, Gartner reported revenues of $6.3 billion, up 6%, with net income of $1.3 billion, up 42%. Adjusted EBITDA grew by 5%, while free cash flow reached $1.4 billion, up 31%. The company also repurchased 1.6 million shares, reducing its outstanding share count by 1%.

Gartner's CEO, Gene Hall, commented on the company's performance, stating that the Q4 results exceeded expectations and highlighting strong contract value growth. The company remains focused on accelerating hiring and maintaining long-term, double-digit growth in 2025.

Gartner will host a webcast to discuss these results, with a replay available on its Investor Relations website.