NYSE$IT

Gartner Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Gartner's Q3 2021 earnings showcased strong growth in contract value, revenue, EBITDA, and free cash flow, with increased guidance reflecting the momentum seen throughout the first three quarters of the year.

Gartner reported a strong Q3 2021 with a 16.3% increase in revenue to $1.2 billion and a significant rise in net income to $149 million. The company's diluted EPS increased by 826.3% to $1.76, and free cash flow grew by 44.5% to $331 million. Gartner also repurchased 1.3 million common shares for $355 million during the quarter.

  • Revenues increased by 16.3% to $1.2 billion, or 15.0% on an FX neutral basis.
  • Net income reached $149 million, with adjusted EBITDA at $305 million, an 82.3% increase.
  • Diluted EPS rose by 826.3% to $1.76, while adjusted EPS increased by 123.1% to $2.03.
  • Free cash flow grew by 44.5% to $331 million.

Headline financials

Total Revenue

$1.16B

Previous: $995M+16.3%
EPS (adj)

$2.03

Previous: $0.91+123.1%
GTS Contract Value

$3.2B

Previous: $2.8B+14.3%
GBS Contract Value

$800M

Previous: $700M+14.3%
Capital Expenditures

-$38.7M

Previous: -$60.8M+36.4%
Free Cash Flow

$110M

Previous: -$43.9M+351.1%
Net Income

$149M

Previous: $17M+777.5%
Operating Income

$230M

Previous: $87.7M+162.7%
Gross Profit

$797M

Previous: $665M+19.9%
Cash & Equivalents

$766M

Previous: $554M+38.3%
Total Assets

$6.99B

Previous: $6.84B+2.3%
Stock-Based Comp

$19.4M

Previous: $15.5M+25.3%

Revenue & EPS history

Gartner · Revenue · Quarterly

$1.16B

Q3 2021+16.3%vs Q3 2020
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Revenue by segment

Gartner · $119M total across 2 segments · Q3 2021

  • Consulting
    $95M+6.5%
  • Conferences
    $24M+89.0%

Forward guidance

Gartner is again raising our guidance to reflect the momentum we have seen through the first three quarters of the year.

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 Q3 2021

Historical avgQ3 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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