On February 4 (Reuters) - Gartner forecasted annual results below analysts' expectations due to a slowdown in growth at its research unit, which generates over half of its revenue.
The IT consultancy company anticipates that its research unit's revenue for the full year of 2025 will be at least $5.37 billion, falling short of the estimated $5.50 billion, according to data from LSEG. Gartner projects total revenue for the year at $6.56 billion, compared to estimates of $6.70 billion.
Based in Stamford, Connecticut, Gartner predicts an annual adjusted profit per share of $11.45, lower than the estimated $13.10 per share.
Gartner, a prominent research and advisory company guiding clients in business decisions using data and analytics, serves approximately 15,000 enterprise clients across three segments: research, consulting, and conferences.
Reporting revenues of $1.71 billion for the fourth quarter ending on December 31, the company met expectations. Revenue from its core research segment increased by about 5% to $1.31 billion in the reported quarter.
The adjusted quarterly profit of $5.11 per share exceeded analysts' forecasts of $3.25 per share.