What is Gartner Net Worth in 2024: Financial Performance & Revenue Breakdown

Gartner net worth reflects its stature in the research and advisory industry. As a leader in providing insights, Gartner has achieved notable financial milestones in 2024.

In this article, I’ll break down Gartner’s financial performance, revenue sources, and more to give you a comprehensive view of its financial health, brought to you by Ando Money.

Quick Facts

What is the Market Cap of Gartner in 2024?

Gartner’s market cap stands at an impressive $39.58 billion as of October 2024. This financial achievement positions it among leading companies within its industry, showing strong growth and value creation.

When compared to other notable players in the sector, Gartner’s market cap is quite competitive and adds to its ranking among some of the wealthiest companies.

For those interested in exploring more about how Gartner ranks among other leading companies, I recommend checking out our full list of the most successful firms.

Companies related to Gartner in terms of market cap and financial status include:

• Accenture
• Forrester Research
• McKinsey & Company
• IBM
• Bain & Company
• Deloitte
• KPMG
• PwC
• SAP

Gartner Financial Performance Overview

Revenue Breakdown

Gartner‘s financial strength in 2024 is clearly seen through its revenue streams. With total revenues reported at $1.6 billion in Q2 2024, there has been an overall growth of 6.1% year-over-year. This revenue is derived from three main sectors:

• Research: The backbone of Gartner’s business, generating $1,266 million. Research grew by 4.8% year-over-year, and its growth in FX-neutral terms reached 5.5%.
• Conferences: Contributed $186 million to the overall revenue, reflecting a 10.2% increase year-over-year. The FX-neutral growth for conferences was recorded at 10.8%.
• Consulting: Garnering $143 million and showing the highest growth at 13.1% year-over-year, with FX-neutral growth soaring to 14.9%.

These sectors play a critical role in Gartner’s overall financial performance and show a diversified revenue stream.

Analysis of Net Income

The net income for Gartner reached $230 million in Q2 2024, showing a robust increase of 15.9% compared to the previous year.

This figure demonstrates the company’s profitability and ability to manage costs effectively while driving growth.

The rise in net income is an important indicator of Gartner’s financial health and shareholder value.

Contract Value Contributions

Breaking down the contract value:

• Global Technology Sales (GTS CV) totaled $3.8 billion, with a 6.1% increase year-over-year in FX-neutral terms.
• Global Business Sales (GBS CV) reached $1.1 billion, seeing a remarkable 12.0% growth year-over-year.

These values highlight Gartner’s capacity to capture new business and maintain its competitive edge.

Operating Cash Flow and Free Cash Flow

Gartner’s operating cash flow for Q2 2024 stands at $370 million, though it experienced a 15.1% decrease compared to the previous year.

The free cash flow was reported as $341 million, down 17.0% year-over-year. While these figures show a decline, they remain significant contributors to the company’s financial stability.

Share Repurchases and Authorizations

A major focus for Gartner has been its strategy of share repurchases:

• During Q2 2024, Gartner repurchased 0.8 million common shares for a total value of $340 million.
• Furthermore, the Board of Directors increased the share repurchase authorization by an additional $600 million in July 2024.

These actions have a direct impact on shareholder value and reflect the company’s confidence in its financial outlook.

Segment Performance: Research, Conferences, Consulting

Research remains the largest segment, contributing 73.7% to Gartner’s revenue. Conferences hold a 58.1% contribution margin, reflecting the strong financial gains from this segment. Lastly, Consulting showcases a margin of 37.6%, showing strong performance and potential for growth.

Earnings Per Share (EPS) Insights

The Diluted EPS for Q2 2024 is $2.93, up 18.1% from the previous year. Meanwhile, the Adjusted EPS stands at $3.22, which has increased by 13.0% year-over-year.

The adjusted EPS figures provide a clearer picture of the company’s financial performance by excluding non-recurring items.

Adjusted EBITDA and Margins

Adjusted EBITDA was $416 million in Q2 2024, representing an 8.2% increase year-over-year.

With a margin of 73.7% for research, 58.1% for conferences, and 37.6% for consulting, Gartner’s profitability across its segments is evident and impressive.

Key Factors Influencing Financial Growth

Several factors have influenced Gartner’s strong financial performance:

• Strategic initiatives to expand and retain the customer base.
• Effective cost management strategies leading to higher profitability.
• Growth in global technology and business sales contracts.

FAQs About Gartner

How Does Gartner Generate Revenue?

Gartner earns revenue primarily from its research, conferences, and consulting services. Research is the largest segment, followed by conferences and consulting.

What Are Gartner’s Contract Values?

The Global Technology Sales (GTS) and Global Business Sales (GBS) are significant contributors, valued at $3.8 billion and $1.1 billion respectively.

What Were Gartner’s Earnings for Q2 2024?

Gartner reported a net income of $230 million, a diluted EPS of $2.93, and an adjusted EBITDA of $416 million in Q2 2024.

What Is the Impact of Share Repurchases on Gartner’s Finances?

The share repurchase program positively affects Gartner’s finances by increasing shareholder value and reflecting confidence in future financial stability.

Conclusion

Gartner’s financial growth in 2024 reflects its solid foundation and commitment to strategic progress.

For more insights and updates on financial performances, feel free to explore more at Ando Money. We welcome your thoughts and comments below!