Gartner, Inc. stock research
FY2025 Q4
Gartner (IT) Gross Margin — Quarter Ended Dec 31, 2025
Revenue and gross profit were higher than both the prior quarter and the same quarter a year earlier. Cost of revenue increased from the prior quarter but decreased from a year ago, resulting in a gross margin that weakened sequentially but improved year over year.
Gross margin takeaway
Quarter ended Dec 31, 2025 · FY2025 Q4
Revenue and gross profit were higher than both the prior quarter and the same quarter a year earlier. Cost of revenue increased from the prior quarter but decreased from a year ago, resulting in a gross margin that weakened sequentially but improved year over year.
- The strongest observable driver is the relationship between cost of revenue and revenue growth. The year-over-year margin improvement was supported by a lower cost of revenue alongside higher revenue, while the sequential decline reflected a proportionally larger increase in cost of revenue relative to revenue.
- Compared to the prior quarter, gross margin weakened. Compared to the same quarter one year earlier, gross margin improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
67.8%
Gross profit
$1.2B
Revenue
$1.8B
Cost of revenue
$572.6M
Quarter-over-quarter change
-1.5 pts
Year-over-year change
+1.0 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 |
|---|---|---|---|---|
| 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% |
| Dec 31, 2025 | $1.8B | $1.2B | $572.6M | 67.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2025
-1.5 pts
Year-over-year change
Dec 31, 2024
+1.0 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 cost of revenue and revenue growth. The year-over-year margin improvement was supported by a lower cost of revenue alongside higher revenue, while the sequential decline reflected a proportionally larger increase in cost of revenue relative to revenue.
Compared to the prior quarter, gross margin weakened. Compared to the same quarter one year earlier, gross margin improved.
Monitor the trend in cost of revenue relative to revenue, as it directly influences gross margin direction.