Gartner, Inc. stock research
FY2024 Q4
Gartner (IT) Gross Margin — Quarter Ended Dec 31, 2024
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue also rose. Gross margin weakened slightly from the prior quarter but was stable compared to the same quarter a year earlier.
Gross margin takeaway
Quarter ended Dec 31, 2024 · FY2024 Q4
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue also rose. Gross margin weakened slightly from the prior quarter but was stable compared to the same quarter a year earlier.
- The strongest observable driver is the relationship between revenue growth and cost of revenue growth; revenue increased more than cost of revenue compared to the same quarter last year, supporting a stable gross margin.
- Compared to the prior quarter, gross margin weakened as cost of revenue grew faster than revenue. Compared to the same quarter one year earlier, gross margin was essentially stable.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
66.8%
Gross profit
$1.1B
Revenue
$1.7B
Cost of revenue
$574.9M
Quarter-over-quarter change
-1.6 pts
Year-over-year change
+0.2 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 |
|---|---|---|---|---|
| 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% |
| Dec 31, 2024 | $1.7B | $1.1B | $574.9M | 66.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2024
-1.6 pts
Year-over-year change
Dec 31, 2023
+0.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver is the relationship between revenue growth and cost of revenue growth; revenue increased more than cost of revenue compared to the same quarter last year, supporting a stable gross margin.
Compared to the prior quarter, gross margin weakened as cost of revenue grew faster than revenue. Compared to the same quarter one year earlier, gross margin was essentially stable.
Monitor the trend in cost of revenue relative to revenue, as its faster growth in the current quarter contributed to the margin weakening.