Gartner (IT) FY2023 results: revenue $5.9 billion, up 7.9% on the year

Gartner Inc. (IT) reported revenue of $5.9 billion for fiscal 2023, the year ended 31 December 2023, up 7.9% on the year before. Net income was $882 million, up 9.2%, and diluted earnings per share $11.08. The figures are the company's own, from the 10-K it filed with the SEC on 15 February 2024.

Revenue

$5.9 billion

+7.9% on the year

FY2016FY2023

Operating margin

20.9%

20.1% a year earlier

FY2016FY2023

Net income

$882 million

+9.2% on the year

FY2016FY2023

Diluted EPS

$11.08

+11.2% on the year

FY2016FY2023

this yearthe year beforeHover a bar for its figure.

The year in brief

The four quarters: Q1 FY2023 · Q2 FY2023 · Q3 FY2023 · Q4 FY2023

Income statement (profit and loss)

$ million	FY2023	FY2022	FY2021	On the year
Revenue	5,907	5,476	4,734	+7.9%
Cost of revenue	1,903	1,694	1,444	+12.4%
Gross profit	4,035	3,815	3,290	+5.8%
Gross margin	68.3%	69.7%	69.5%
Selling, general and administrative	2,702	2,481	2,156	+8.9%
Operating income	1,237	1,100	916	+12.4%
Operating margin	20.9%	20.1%	19.3%
Interest expense	133	126	119	+5.2%
Pre-tax income	1,147	1,027	970	+11.7%
Income tax	265	219	176	+20.6%
Effective tax rate	23.1%	21.4%	18.2%
Net income	882	808	794	+9.2%
Net margin	14.9%	14.8%	16.8%
Diluted EPS	$11.08	$9.96	$9.21	+11.2%

$ million except per share.

Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow

$ million	FY2023	FY2022	FY2021	On the year
Operating cash flow	1,156	1,101	1,312	+4.9%
Capital expenditure	103	108	59.8	-4.6%
Free cash flow	1,053	993	1,253	+6.0%
Free cash flow margin	17.8%	18.1%	26.5%
Cash from investing	54.2	-118	-80.5
Cash from financing	-589	-1,027	-1,158
Depreciation and amortisation	191	192	212	-0.4%
Share-based compensation	130	90.6	98.6	+43.4%
Buybacks	606	1,044	1,656	-41.9%
Diluted shares, weighted	80m	81m	86m	-1.7%

Balance sheet

$ million	FY2023	FY2022	FY2021	On the year
Shareholders' equity	681	228	371	+198.8%
Debt	2,458	2,461	2,463	-0.1%
Operating lease liabilities	513	597	698	-14.0%
Other liabilities	4,184	4,013	3,885	+4.2%
Total liabilities and equity	7,836	7,300	7,416	+7.3%
Fixed assets	263	265	274	-0.7%
Goodwill	2,937	2,930	2,951	+0.2%
Intangible assets	502	585	714	-14.2%
Cash and equivalents	1,319	698	756	+89.0%
Receivables	1,601	1,557	1,365	+2.9%
Other assets	1,214	1,265	1,355	-4.1%
Total assets	7,836	7,300	7,416	+7.3%

10-K for the year ended 31 December 2023, filed 15 February 2024: the filing.