Gartner, Inc. stock research
FY2025 Q1
Gartner (IT) Gross Margin — Quarter Ended Mar 31, 2025
Revenue and gross profit both decreased from the prior quarter but were stable compared to the same quarter last year. Gross margin improved from the prior quarter and was unchanged year-over-year, as cost of revenue declined proportionally more than revenue on a sequential basis.
Gross margin takeaway
Quarter ended Mar 31, 2025 · FY2025 Q1
Revenue and gross profit both decreased from the prior quarter but were stable compared to the same quarter last year. Gross margin improved from the prior quarter and was unchanged year-over-year, as cost of revenue declined proportionally more than revenue on a sequential basis.
- The gross margin strengthened sequentially to a level identical to the year-ago quarter. The improvement was driven by a reduction in cost of revenue that outpaced the decline in revenue.
- Compared to the immediately preceding quarter, revenue was lower and cost of revenue was lower, leading to a higher gross profit and an improved gross margin. Versus the same quarter one year earlier, revenue and gross profit were essentially level, and gross margin was unchanged.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
69.4%
Gross profit
$1.1B
Revenue
$1.5B
Cost of revenue
$475.0M
Quarter-over-quarter change
+2.7 pts
Year-over-year change
+0.0 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 |
|---|---|---|---|---|
| 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% |
| Mar 31, 2025 | $1.5B | $1.1B | $475.0M | 69.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2024
+2.7 pts
Year-over-year change
Mar 31, 2024
+0.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin strengthened sequentially to a level identical to the year-ago quarter. The improvement was driven by a reduction in cost of revenue that outpaced the decline in revenue.
Compared to the immediately preceding quarter, revenue was lower and cost of revenue was lower, leading to a higher gross profit and an improved gross margin. Versus the same quarter one year earlier, revenue and gross profit were essentially level, and gross margin was unchanged.
Monitor whether cost of revenue can continue to decline relative to revenue in future quarters, as the sequential margin improvement was tied to a sharper drop in costs.