Gartner Hikes 2025 Profit Outlook Despite Revenue Trim, Citing Cost Discipline
Gartner Inc. (IT.N) on Tuesday raised its 2025 profit forecast after posting better-than-expected Q1 earnings, thanks to strict cost-cutting measures and resilient demand for its subscription research services. The company now expects adjusted EPS of at least $11.70, up from its prior estimate of $11.45.
The technology research and advisory firm, which serves clients like Accenture and Cognizant, reported Q1 adjusted earnings of $2.98 per share, surpassing analyst expectations of $2.72, according to LSEG. Despite macroeconomic headwinds such as tariff-driven volatility, Gartner’s research segment, its largest, grew 4.2% year-on-year, helping cushion softness in other areas.
Total Q1 revenue came in at $1.53 billion, a 4.2% year-over-year increase but slightly below analysts’ forecast of $1.54 billion. The company revised its full-year 2025 revenue guidance slightly downward to $6.53 billion, from the earlier $6.56 billion estimate.
Costs rose by just 4.7%, a marked slowdown from the 8.8% increase in the prior quarter, signaling effective cost management. Gartner operates in three core business units:
-
Research (subscription-based insights)
-
Consulting (custom advisory services)
-
Conferences (networking and executive events)
While the company anticipates modest revenue growth, its higher earnings guidance highlights confidence in margin stability driven by efficiency improvements and robust retention in recurring services.

