Gartner beats quarterly profit estimates as contract value grows

Reuters
Updated ·2-min read

(Reuters) -Gartner on Tuesday beat estimates for fourth-quarter profit and reported revenue in line with expectations, as the research and advisory firm benefited from an increase in contract values.

While Gartner issued a weaker forecast for 2025, analysts noted investors were pinning their hopes on the acceleration in contract value.

"Investors are encouraged by the acceleration in CV (contract value) growth which could support recurring revenue growth in the quarters ahead ... Gartner typically guides each year conservatively and this is incorporated into investor expectations," said UBS analyst Joshua Chan.

Shares of the company climbed as much as 5% in early trading. They were last up about 1% in mid-day trading.

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Gartner is benefiting as more clients sign up for its services, mainly in finance, sales and legal sectors. The revenue also saw a rising contribution from its conferences segment, as it held 13 destination conferences in the quarter.

The company said global contract value grew about 8% to $5.3 billion in the quarter, accelerating from a 7.3% increase in the prior three-month period.

It reported an adjusted profit of $5.45 per share, handily beating analysts' estimates of $3.25 per share, according to LSEG data.

The company projected full-year 2025 revenue of $6.56 billion, below analysts' estimates of $6.70 billion, per data compiled by LSEG.

"The biggest driver of forward year subscription revenue growth is going to be the end of year -- prioryear CV growth," said CFO Craig Safian.

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Gartner said it expects an annual adjusted profit per share of $11.45, compared with estimates of $13.10 per share.

Gartner is a research and advisory firm that provides business data and analytics services to its customers. It has more than 15,000 enterprise clients and operates in three segments — research, consulting and conferences.

(Reporting by Kritika Lamba in Bengaluru; Editing by Shailesh Kuber)

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