Gartner Reports Strong Q3 Earnings Amid Uncertain Times


Shares of Gartner Inc. skyrocketed to new heights on Friday following the release of their impressive third-quarter earnings report. The leading information-technology research and consulting company surpassed expectations by a wide margin and raised their full-year outlook, citing the benefits gained from navigating an uncertain macroenvironment.

Embracing Change in an Unpredictable Landscape

Addressing the current landscape, Chief Executive Eugene Hall acknowledged the volatility and uncertainty which continues to persist. He stated, “The external environment remains volatile and uncertain. The tech sector is still adjusting to post-pandemic demand. The banking industry continues to grapple with rising interest rates. Supply chain challenges are still prevalent in many industries. There’s heightened geopolitical volatility and more.” Despite these challenges, Hall expressed confidence in Gartner’s ability to provide the necessary support, affirming that leaders recognize Gartner as the best source for assistance.

Record Surge in Stock

Gartner’s stock (IT) observed a remarkable surge of 16.2% in morning trading, positioning it to exceed its previous record close of $374.04 on July 18. This upward trajectory marked the largest one-day gain since a 16.4% increase was recorded on March 26, 2020.

Solid Financial Performance

The impressive financial results highlighted Gartner’s continued growth and resilience. Net income rose to $180 million, equivalent to $2.26 per share, compared to $173.5 million and $2.17 per share during the same period last year.

Gartner Inc.’s exceptional performance in a challenging environment underscores their position as a trusted leader in the information-technology industry. As they navigate the complexities of the ever-evolving business world, their ability to adapt and guide clients becomes increasingly indispensable.

Strong Financial Performance Drives Gartner’s Growth

Gartner, the leading research and advisory company, has reported impressive financial results for the past quarter. Adjusted earnings per share rose to $2.56, surpassing the FactSet EPS consensus of $1.96. This represents a significant increase from the previous year’s $2.41.

The company’s revenue also experienced a healthy growth of 5.8%, reaching $1.41 billion, exceeding the FactSet consensus of $1.39 billion. The research revenue witnessed a substantial rise of 6.2%, reaching $1.22 billion, outperforming the FactSet consensus of $1.21 billion. Moreover, Gartner’s consulting revenue saw an impressive surge of 24.1%, totaling $132.8 million, beating expectations of $115.3 million. However, their conferences revenue experienced a slight decline of 25.7%, amounting to $57.2 million, missing expectations of $64.6 million.

Looking ahead to 2023, Gartner has raised its guidance for adjusted EPS to $10.90 from $10 and for revenue to $5.89 billion from $5.85 billion. While the current FactSet consensus projects EPS of $10.29 and revenue of $5.88 billion, Gartner remains optimistic about achieving even better results.

These remarkable financial achievements have reflected positively in Gartner’s stock performance, which has surged by 15.1% over the past three months. In contrast, the S&P 500 index (SPX) has experienced a modest decline of 3.3% during the same period.

Gartner continues to establish itself as a leader in the research and advisory industry, driven by its strong financial performance and commitment to excellence.

Leave a Reply

Your email address will not be published. Required fields are marked *

Previous Post

Reversal in Pre-Market Trading for Consumer Discretionary Companies

Next Post

Activist Holdings

Related Posts