Gartner raises annual profit forecast on steady demand for IT services

By Thomson Reuters Apr 30, 2024 | 6:07 AM

(Reuters) – Information technology consultant Gartner beat first-quarter profit and raised its annual earnings forecast on Tuesday, as it expects to benefit from steady demand for its research and consulting services.

The company, a dominant player in the data and analytics market, expects full-year adjusted earnings of about $10.90 per share, up from its previous expectation of $10.55.

It reported an adjusted profit of $2.93 per share in the first quarter, above estimates of $2.53, according to LSEG data.

Gartner’s research segment, which accounts for more than half of its revenue, rose 4% to $1.27 million, primarily driven by growth in subscriptions and contract renewal by customers.

Its consulting segment recorded a 6% rise in revenue to $134.6 million.

Gartner, which helps its customers make business decisions through data and analytics, posted revenue of $1.47 billion, in-line with analysts’ average estimate.

The company also downgraded its annual revenue forecast to $6.20 billion from its earlier forecast of $6.24 billion.

(Reporting by Priyanka.G in Bengaluru)