Gartner, Inc. stock research
FY2024 Q3
Gartner (IT) Gross Margin — Quarter Ended Sep 30, 2024
Revenue and gross profit were lower sequentially but higher compared to the same quarter one year earlier. Gross margin weakened slightly from the prior quarter but improved relative to the prior year, reflecting a proportionally smaller decline in cost of revenue relative to revenue on a year-over-year basis.
Gross margin takeaway
Quarter ended Sep 30, 2024 · FY2024 Q3
Revenue and gross profit were lower sequentially but higher compared to the same quarter one year earlier. Gross margin weakened slightly from the prior quarter but improved relative to the prior year, reflecting a proportionally smaller decline in cost of revenue relative to revenue on a year-over-year basis.
- Gross margin was stable across periods, with the strongest observable driver being the consistent relationship between cost of revenue and revenue—cost of revenue decreased proportionally less than revenue sequentially, and proportionally more on a year-over-year basis, supporting margin resilience.
- Compared to the immediately preceding quarter, revenue and gross profit were lower while gross margin weakened slightly. Versus the same quarter one year earlier, revenue and gross profit were higher and gross margin improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
68.4%
Gross profit
$1.0B
Revenue
$1.5B
Cost of revenue
$475.3M
Quarter-over-quarter change
-0.2 pts
Year-over-year change
+0.4 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Dec 31, 2023 | $1.6B | $1.1B | $529.8M | 66.6% |
| Mar 31, 2024 | $1.5B | $1.0B | $459.4M | 69.4% |
| Jun 30, 2024 | $1.6B | $1.1B | $513.3M | 68.6% |
| Sep 30, 2024 | $1.5B | $1.0B | $475.3M | 68.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2024
-0.2 pts
Year-over-year change
Sep 30, 2023
+0.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross margin was stable across periods, with the strongest observable driver being the consistent relationship between cost of revenue and revenue—cost of revenue decreased proportionally less than revenue sequentially, and proportionally more on a year-over-year basis, supporting margin resilience.
Compared to the immediately preceding quarter, revenue and gross profit were lower while gross margin weakened slightly. Versus the same quarter one year earlier, revenue and gross profit were higher and gross margin improved.
Monitor the trajectory of cost of revenue relative to revenue, as its proportional movement directly influences gross margin direction.