Gartner’s first quarter results were shaped by a combination of continued contract value expansion and careful expense management, which helped the company deliver higher-than-expected non-GAAP earnings per share. Management highlighted that growth in its Research and Consulting segments, along with robust performance in Conferences, contributed to the positive outcome. CEO Gene Hall noted, “Contract value grew 7%, and we increased headcount across our sales organizations by 4%.” The quarter’s performance was tempered by challenges in the U.S. federal government segment, where renewal rates lagged, but management emphasized the underlying strength in private sector and international markets.

Is now the time to buy IT? Find out in our full research report (it’s free).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions Gartner’s Q1 Earnings Call

• Jeffrey Meuler (Baird) asked about sales headcount management in U.S. federal and other impacted areas. CFO Craig Safian clarified that headcount growth is paused in federal, but top sales talent is reassigned where possible; otherwise, capacity is retained for future opportunities.
• Toni Kaplan (Morgan Stanley) questioned how Q1 trends influenced full-year guidance. Safian explained that updated guidance reflects slower decision-making seen in March, with those trends extended across 2025.
• George Tong (Goldman Sachs) sought clarity on the research revenue outlook and the impact of federal versus non-federal clients. Safian confirmed the downward revision was mainly due to federal, while tech vendor and enterprise leader segments remain comparatively healthy.
• Faiza Alwy (Deutsche Bank) inquired about tariff-impacted clients and Gartner’s strategy to retain and expand value. CEO Gene Hall described how uncertainty initially slows decisions, but engagement often rebounds as clients seek help with challenges like AI and cybersecurity.
• Jason Haas (Wells Fargo) asked about the development of AI-powered chat tools for clients. Hall said a client-facing version is in progress but will be launched only after ensuring its accuracy and reliability.

Catalysts in Upcoming Quarters

In the coming quarters, the StockStory team will monitor (1) the pace of U.S. federal contract renewals and signs of stabilization in that segment, (2) sales productivity improvements and headcount growth outside directly impacted areas, and (3) the rollout and client adoption of AI-driven tools. Execution on these fronts, along with continued resilience in Research and Consulting, will be key to sustaining long-term growth.

Gartner currently trades at $400.48, down from $427.39 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free).

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