Gartner (IT) Q2 2016 Earnings Call

posted in: Earnings Call, Notes | 0

Gartner (IT) CEO Eugene Hall said corporations are emphasizing specific areas of their IT budgets for growth

“Technology is critical for every enterprise around the world. Every enterprise has cybersecurity risks. Every enterprise is worried about technology disruption. And technology is the key to fueling cost reduction, whether enterprise is funding new growth initiatives or improving margins.¬†Enterprises know they need help. And Gartner is the best and most cost-effective source for that help. Our clients rely on us for independent, objective, fact-based insights for making critical technology decisions. Our services deliver tremendous value, and in most cases pay back many times over.”

He’s hearing from his clients that they remain challenged¬†in an environment starved for growth

“There’re a number of factors in the global economy today that impact our clients. Economic growth has slowed in countries around the world. Oil and other commodity prices have fallen dramatically. Exchange rates are at levels that challenge U.S. exporters and challenge non-U.S. importers. And most recently, there’s Brexit. As a result of these factors, we see a higher proportion of our clients with financial challenges compared to the past few years. In the U.S., the S&P 500 is having its fourth consecutive quarter of negative earnings growth. In Europe, the S&P 350 is expected to have negative earnings growth this year.”