Gartner, Inc. stock research
FY2025 Q3
Gartner (IT) Gross Margin — Quarter Ended Sep 30, 2025
In the current quarter, gross margin improved compared to both the prior quarter and the same quarter last year, as cost of revenue decreased more proportionally than revenue relative to the preceding quarter. The relationship among revenue, gross profit, and cost resulted in a higher gross margin.
Gross margin takeaway
Quarter ended Sep 30, 2025 · FY2025 Q3
In the current quarter, gross margin improved compared to both the prior quarter and the same quarter last year, as cost of revenue decreased more proportionally than revenue relative to the preceding quarter. The relationship among revenue, gross profit, and cost resulted in a higher gross margin.
- The strongest observable driver is the relative decline in cost of revenue against revenue. Cost decreased while revenue was lower compared to the prior quarter, leading to margin expansion.
- Compared to the immediately preceding quarter, gross margin was higher even though revenue was lower; cost of revenue declined at a greater rate. Year over year, gross margin was also higher as revenue remained similar while cost was slightly lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
69.3%
Gross profit
$1.1B
Revenue
$1.5B
Cost of revenue
$474.2M
Quarter-over-quarter change
+0.7 pts
Year-over-year change
+0.9 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, 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% |
| Sep 30, 2025 | $1.5B | $1.1B | $474.2M | 69.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2025
+0.7 pts
Year-over-year change
Sep 30, 2024
+0.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver is the relative decline in cost of revenue against revenue. Cost decreased while revenue was lower compared to the prior quarter, leading to margin expansion.
Compared to the immediately preceding quarter, gross margin was higher even though revenue was lower; cost of revenue declined at a greater rate. Year over year, gross margin was also higher as revenue remained similar while cost was slightly lower.
Monitor the trend in cost of revenue relative to revenue to assess whether margin improvement can be sustained.