Gartner, Inc.
IT
Market Cap$31B
Close$
Earnings Call Q1 2025
May 6, 2025 - AI Summary
Revenue and Contract Value Growth: Gartner reported a 7% year-over-year growth in contract value (CV) for Q1 2025, exceeding expectations. Revenue reached $1.5 billion, up 4% YoY, indicating continued strength in core segments, particularly research, which saw a growth rate of 4% as reported and 6% FX neutral. However, excluding U.S. federal business, CV grew at 8%, suggesting a healthy trend for non-federal clients.
Adjusted EBITDA and EPS Performance: Adjusted EBITDA was $385 million for Q1, a modest 1% increase, with adjusted EPS at $2.98 (up 2% YoY). The company remains focused on managing costs while seeking opportunities for margin expansion, which is crucial given the uncertain macroeconomic landscape.
U.S. Federal Government Impact: The U.S. federal business, constituting approximately 4% of total contract value, has faced challenges, with contract renewals impacted by policy changes. Only about half of the contracts up for renewal in Q1 were successfully renewed, with a current dollar retention rate of almost 50%. This poses a risk to overall growth and visibility going forward.
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$448.23
10.2% upside
Current Fair Value
10.2% upsideUndervalued by 10.2% based on the discounted cash flow analysis.
Share Statistics
| Market cap | $31.00 Billion |
|---|---|
| Enterprise Value | $34.62 Billion |
| Dividend Yield | $0 (0%) |
| Earnings per Share | $16.12 |
| Beta | 1.23 |
| Outstanding Shares | 77,357,000 |
Return
| Return on Equity | - |
|---|---|
| Return on Assets | - |
| Return on Invested Capital | - |
Valuation & Multiples
| P/E Ratio | 24.84 |
|---|---|
| PEG | 13275.76 |
| Price to Sales | 5.02 |
| Price to Book Ratio | 21.41 |
| Enterprise Value to Revenue | 5.47 |
| Enterprise Value to EBIT | 30.39 |
| Enterprise Value to Net Income | 27 |
| Total Debt to Enterprise | 0.16 |
| Debt to Equity | 3.81 |
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...