NYSE$IT

Gartner Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Gartner's Q2 2021 financial performance showcased significant growth, driven by strong revenues, EBITDA, margins, and free cash flow, with increased share repurchase authorization.

Gartner reported strong Q2 2021 financial results, with revenue of $1.2 billion, a 20.0% increase as reported and 15.9% FX neutral. Net income was $271 million, and adjusted EPS was $2.24, an 86.7% increase. The company generated $563 million in free cash flow and repurchased 3.1 million common shares for $685 million. Gartner has raised its guidance to reflect the momentum we saw in the first half of 2021.

  • Revenues increased by 20.0% to $1.2 billion, or 15.9% on an FX neutral basis.
  • Net income reached $271 million, with adjusted EBITDA at $355 million, up 84.9% as reported and 75.4% FX neutral.
  • Diluted EPS was $3.13, a 413.1% increase, while adjusted EPS was $2.24, up 86.7%.
  • Free cash flow was $563 million, a 75.1% increase.

Headline financials

Total Revenue

$1.17B

Previous: $973M+20.0%
EPS (adj)

$2.24

Previous: $1.20+86.7%
GTS Contract Value

$3.1B

Previous: $2.8B+10.7%
GBS Contract Value

$800M

Previous: $600M+33.3%
Capital Expenditures

-$24.5M

Previous: -$45.9M+46.6%
Free Cash Flow

$247M

Previous: $9.21M+2578.6%
Net Income

$271M

Previous: $55.1M+392.5%
Operating Income

$275M

Previous: $99.7M+175.7%
Gross Profit

$817M

Previous: $651M+25.5%
Cash & Equivalents

$796M

Previous: $357M+123.3%
Total Assets

$7.19B

Previous: $6.81B+5.6%
Stock-Based Comp

$26.2M

Previous: $15.7M+67.0%

Revenue & EPS history

Gartner · Revenue · Quarterly

$1.17B

Q2 2021+20%vs Q2 2020
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Revenue by segment

Gartner · $164M total across 2 segments · Q2 2021

  • Consulting
    $106M+9.3%
  • Conferences
    $58M+19233.3%

Forward guidance

Gartner is raising its guidance to reflect the momentum we saw in the first half of 2021.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2021

Historical avgQ2 2021

+1.0%

Avg return

Earnings day

+0.6%

Avg return

5 days after

+2.6%

Avg return

30 days after

50%

34 / 68 earnings

Positive

+17.0%

Q1 2021

Best reaction

-20.9%

Q4 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+3.6%+7.4%+11.0%
Q4 2025-20.9%-22.8%-15.5%
Q3 2025-7.6%-6.2%-5.6%
Q1 2025+1.3%+1.3%-1.3%
Q4 2024-0.1%-3.4%-11.8%
Q3 2024+6.3%+8.4%+2.3%
Q2 2024+6.4%+1.8%+3.2%
Q1 2024-5.9%-4.5%-7.6%
Q4 2023-4.2%-1.3%+0.0%
Q3 2023+16.3%+18.8%+30.7%
Q2 2023-3.6%-4.7%-1.1%
Q1 2023-0.6%-1.3%+10.6%
Q4 2022+1.6%+2.0%-2.5%
Q3 2022+5.5%+5.8%+18.0%
Q2 2022+7.1%+9.8%+8.3%
Q1 2022-3.4%-12.8%-7.4%
Q4 2021+2.7%-2.1%-4.7%
Q3 2021-0.8%+0.9%-3.0%
Q2 2021+9.4%+10.5%+17.7%
Q1 2021+17.0%+18.5%+18.0%
Q4 2020+7.5%+8.8%+10.8%
Q3 2020+13.8%+18.4%+22.1%
Q2 2020+3.0%+4.7%+4.7%
Q1 2020+6.6%+0.9%+17.4%
Q4 2019-5.8%-6.9%-23.4%
Q3 2019+6.4%+7.5%+9.4%
Q2 2019-18.4%-20.9%-22.7%
Q1 2019-4.8%-4.7%-4.5%
Q4 2018-0.2%-3.1%-1.1%
Q3 2018-3.7%-3.6%+3.8%
Q2 2018-0.5%+3.4%+10.6%
Q1 2018+7.9%+9.1%+11.0%
Q4 2017-6.9%-9.9%-6.0%
Q3 2017-5.5%-6.2%-4.5%
Q2 2017-4.9%-7.4%-2.9%
Q1 2017-0.2%+0.2%+6.5%
Q4 2016+0.8%-0.1%+4.7%
Q3 2016+8.3%+13.5%+16.1%
Q2 2016-4.5%-5.2%-8.0%
Q1 2016+11.2%
Q4 2015-4.1%
Q3 2015-4.4%
Q2 2015+1.8%
Q1 2015+1.8%
Q4 2014-7.8%
Q3 2014+3.9%
Q2 2014+2.4%
Q1 2014+8.6%
Q4 2013-1.9%
Q3 2013+3.0%
Q2 2013-8.2%
Q1 2013-0.5%
Q4 2012-5.7%
Q3 2012-4.9%
Q4 2011+7.7%
Q2 2012+7.7%
Q1 2012-2.6%
Q3 2011+4.5%
Q2 2011+2.4%
Q1 2010-6.8%
Q1 2011+2.3%
Q4 2008-3.3%
Q4 2010-3.3%
Q3 2010-1.7%
Q3 2009-1.7%
Q2 2010+11.7%
Q4 2009+11.7%
Q2 2009+11.7%

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