Gartner (IT) Financials

Over the past four years through Q2 2025, Gartner Inc. (NYSE: IT) has displayed a consistent growth trajectory in revenue, profitability, and cash flow generation, with some fluctuations in certain line items that investors should monitor.

Positive Trends:

• Operating Revenue increased from approximately $1.33 billion in Q3 2022 to $1.69 billion in Q2 2025, showing steady growth in the company’s top line.
• Net Income has generally trended upward, from about $173 million in Q3 2022 to $241 million in Q2 2025, reflecting stronger profitability over time.
• Gross Profit has expanded in line with revenue growth, from ~$915 million in Q3 2022 to over $1.15 billion in Q2 2025, demonstrating operating leverage.
• Operating Income also improved from approximately $244 million in Q3 2022 to $327 million in Q2 2025, highlighting effective cost management relative to revenue.
• Cash and equivalents saw a substantial increase, nearly doubling from about $528 million in Q3 2022 to $2.2 billion by Q2 2025, strengthening liquidity.
• Net cash provided by operating activities grew significantly, reaching $384 million in Q2 2025, up from $315 million in Q3 2022, signifying healthy core cash flow generation.
• Repurchases of common equity increased, indicating management's confidence in the company’s prospects and returning value to shareholders.

Neutral Observations:

• Total operating expenses have increased in nominal terms, consistent with revenue growth, but the mixed trend in SG&A expenses suggests ongoing investment balanced with cost control.
• The company maintains a significant amount of goodwill and intangible assets (around $3 billion and $375 million respectively as of Q2 2025), reflecting acquisitions that may require monitoring for impairment risks.
• Long-term debt remained fairly steady over the period around $2.4–2.5 billion, indicating stable leverage but warrants observation as part of financial risk assessment.

Negative or Cautionary Points:

• The company experienced periods of negative changes in operating assets and liabilities which have at times reduced operating cash flow, as seen in some quarters (e.g., negative $169 million in Q1 2024), which could impact liquidity temporarily.
• Interest expense rose from $22 million in Q3 2022 to about $11–19 million in recent quarters, which could pressure net income if debt levels or interest rates increase.
• While net income has generally increased, the diluted EPS growth is more moderate, partially due to share issuance and outstanding share count, dampening per-share growth for investors.
• Treasury stock line item trends suggest ongoing share repurchases; however, the large negative balances ($6.9 billion in Q2 2025) also reflect capital spent that might otherwise be deployed in growth initiatives.
• The tax expense fluctuated and was negative in Q4 2024 (-$97 million), potentially from tax benefits or adjustments, which investors should understand in context of tax strategy.

Summary: Gartner has demonstrated solid revenue and earnings growth alongside strong cash flow generation and liquidity improvements over the past four years. While the company effectively manages costs and returns capital via share repurchases, investors should keep an eye on operating working capital fluctuations, interest expenses, and goodwill levels as potential risk areas. Overall, the financial trends paint a stable to positive picture for Gartner as it continues to execute its strategic growth plan.