Gartner, Inc. stock research
FY2025 Q2
Gartner (IT) Gross Margin — Quarter Ended Jun 30, 2025
Revenue, gross profit, and cost of revenue all increased compared to both the prior quarter and the same quarter last year. Gross margin weakened slightly from the prior quarter but remained stable compared to the same quarter last year.
Gross margin takeaway
Quarter ended Jun 30, 2025 · FY2025 Q2
Revenue, gross profit, and cost of revenue all increased compared to both the prior quarter and the same quarter last year. Gross margin weakened slightly from the prior quarter but remained stable compared to the same quarter last year.
- The strongest observable margin driver is the relationship between revenue and cost of revenue growth: year-over-year, the two increased proportionally, holding margin stable; sequentially, cost of revenue grew faster than revenue, leading to a slight margin decline.
- Compared to the prior quarter, revenue was higher while gross margin was lower, indicating a mixed performance. Compared to the same quarter one year earlier, revenue was higher and gross margin was unchanged, showing improvement in scale without margin erosion.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
68.6%
Gross profit
$1.2B
Revenue
$1.7B
Cost of revenue
$531.7M
Quarter-over-quarter change
-0.8 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 |
|---|---|---|---|---|
| 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% |
| Jun 30, 2025 | $1.7B | $1.2B | $531.7M | 68.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2025
-0.8 pts
Year-over-year change
Jun 30, 2024
-0.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the relationship between revenue and cost of revenue growth: year-over-year, the two increased proportionally, holding margin stable; sequentially, cost of revenue grew faster than revenue, leading to a slight margin decline.
Compared to the prior quarter, revenue was higher while gross margin was lower, indicating a mixed performance. Compared to the same quarter one year earlier, revenue was higher and gross margin was unchanged, showing improvement in scale without margin erosion.
Monitor the trend of cost of revenue relative to revenue, as its faster sequential growth caused the slight margin weakening.