Gartner (IT) AI Stock Analysis

• Market Cap: $18.91B
• Dividend Yield: N/A
• Average Volume (3M): 1.42M
• Price to Earnings (P/E): 15.4
• Beta (1Y): 1.04
• Revenue Growth: 5.89%
• EPS Growth: 54.53%
• Country: US
• Employees: 21,107
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 3.53
• Shares Outstanding: 75,735,794
• 10 Day Avg. Volume: 1,013,390
• 30 Day Avg. Volume: 1,422,473
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.69
• Enterprise Value/Revenue: 4.97
• Enterprise Value/Gross Profit: 7.32
• Enterprise Value/Ebitda: 18.41
• 1Y Price Target: $277.78
• Price Target Upside: 9.92% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 12

• Rating: 74 Outperform
• Price Target: $286.00 ▲(13.18% Upside)

Gartner's strong financial performance and strategic focus on AI are significant strengths, supporting a positive outlook. However, high leverage and challenges with U.S. federal contracts and tariffs present risks. The technical indicators suggest a cautious approach due to bearish trends.

Positive Factors

AI Integration

Gartner's strategic focus on AI, including the rollout of AskGartner, positions the company to capitalize on growing demand, enhancing client engagement and operational efficiency.

Revenue and Profit Growth

Consistent revenue and profit growth indicate strong market demand and effective business strategies, supporting long-term financial stability and shareholder value.

Cash Flow Management

Strong cash flow growth demonstrates effective cash management, providing the company with flexibility to invest in growth opportunities and return capital to shareholders.

Negative Factors

High Debt Levels

High leverage can limit financial flexibility and increase risk, requiring careful management to ensure long-term sustainability and avoid potential financial distress.

Challenges with Government Contracts

Difficulties with federal contracts can impact revenue growth and market positioning, necessitating strategic adjustments to mitigate risks and maintain client relationships.

Impact of Tariffs

Tariff-related challenges can disrupt sales processes and decision-making, potentially slowing revenue growth and affecting operational efficiency in impacted sectors.

Gartner Business Overview & Revenue Model

Company Description

Gartner, Inc. is a leading research and advisory company specializing in providing insights, advice, and tools for IT, marketing, finance, and other business sectors. Founded in 1979, Gartner serves a wide range of clients, including executives and IT professionals, by delivering high-quality research, data analytics, and advisory services. The company operates primarily in the technology sector, offering a suite of products such as market research reports, strategic advisory services, and consulting to help organizations make informed decisions and drive business growth.

How the Company Makes Money

Gartner generates revenue through multiple streams, primarily from its subscription-based services, which provide clients with access to market research, analysis, and expert advice. The company offers various membership tiers, enabling clients to choose the level of access that meets their needs. Additionally, Gartner earns revenue from consulting services, where it provides tailored advice and strategic guidance to organizations facing specific challenges. The company also benefits from hosting conferences and events, which serve as platforms for networking and knowledge sharing among industry professionals. Partnerships with technology vendors and service providers further enhance Gartner's offerings, allowing it to deliver comprehensive insights and maintain a strong market position.

Gartner Financial Statement Overview

Summary

Gartner exhibits strong financial performance with consistent revenue growth and profitability. The company maintains strong returns on equity and cash flow generation, but high debt levels pose a risk that requires careful management.

Income Statement

Gartner shows strong revenue growth with a TTM increase of 1.44% and consistent gross profit margins around 68%. The net profit margin is healthy at approximately 19.7% TTM, indicating efficient cost management. However, the EBIT and EBITDA margins have slightly decreased in the TTM compared to the previous year, suggesting some pressure on operational efficiency.

Balance Sheet

The company has a high debt-to-equity ratio of 1.87 TTM, which has improved from previous years but still indicates significant leverage. Return on equity is robust at 92.8% TTM, reflecting strong profitability relative to shareholder equity. The equity ratio is relatively low, indicating a reliance on debt financing.

Cash Flow

Gartner's free cash flow has grown by 44.7% TTM, showing strong cash generation capabilities. The operating cash flow to net income ratio is 0.45, indicating good cash conversion. The free cash flow to net income ratio remains high at 93.1%, demonstrating effective cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.42B	6.27B	5.91B	5.48B	4.73B	4.10B
Gross Profit	4.36B	4.24B	4.00B	3.78B	3.29B	2.75B
EBITDA	1.73B	1.72B	1.47B	1.35B	1.30B	660.75M
Net Income	1.27B	1.25B	882.47M	807.80M	793.56M	266.75M
Balance Sheet
Total Assets	8.33B	8.53B	7.84B	7.30B	7.42B	7.32B
Cash, Cash Equivalents and Short-Term Investments	2.20B	1.93B	1.32B	698.00M	756.49M	712.58M
Total Debt	2.86B	2.90B	3.07B	3.16B	3.25B	2.84B
Total Liabilities	6.80B	7.18B	7.16B	7.07B	7.05B	6.23B
Stockholders Equity	1.53B	1.36B	680.63M	227.80M	371.06M	1.09B
Cash Flow
Free Cash Flow	1.51B	1.38B	1.05B	993.37M	1.25B	819.39M
Operating Cash Flow	1.62B	1.48B	1.16B	1.10B	1.31B	903.28M
Investing Cash Flow	-111.53M	-103.74M	54.16M	-117.56M	-80.47M	-83.89M
Financing Cash Flow	-576.60M	-710.14M	-588.88M	-1.03B	-1.16B	-416.22M

Gartner Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 252.70
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT, the sentiment is Neutral. The current price of 252.7 is above the 20-day moving average (MA) of 247.63, above the 50-day MA of 249.19, and below the 200-day MA of 379.76, indicating a neutral trend. The MACD of -0.72 indicates Negative momentum. The RSI at 49.43 is Neutral, neither overbought nor oversold. The STOCH value of 68.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IT.

Gartner Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ACN	―	$153.64B	20.85	25.82%	2.40%	7.36%	6.18%
CTSH	―	$35.01B	13.77	16.69%	1.72%	6.34%	12.16%
IT	―	$18.91B	15.36	116.13%	―	5.89%	54.53%
INFY	―	$71.04B	21.40	29.15%	3.08%	4.62%	1.06%
WIT	―	$28.73B	17.85	16.39%	3.09%	-1.97%	48.61%
EPAM	―	$9.07B	23.22	11.36%	―	9.73%	-0.29%
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Gartner Corporate Events

Gartner Authorizes Additional $1 Billion for Buybacks

On September 10, 2025, Gartner, Inc.’s Board of Directors authorized an additional $1.0 billion for share repurchases, supplementing the previous $6.0 billion authorization, of which $450 million remained by the end of August 2025. This move allows Gartner to continue its stock repurchase strategy, potentially enhancing shareholder value, though the company retains discretion over the timing and amount of repurchases based on market conditions and other factors.

The most recent analyst rating on (IT) stock is a Hold with a $322.00 price target. To see the full list of analyst forecasts on Gartner stock, see the IT Stock Forecast page.

Gartner Reports Steady Growth in Q2 2025 Results

Gartner, Inc., a leading provider of business and technology insights, has reported its financial results for the second quarter of 2025, showcasing a steady growth trajectory in its core operations. The company operates in the research and advisory services sector, offering actionable insights to help organizations make informed decisions.

Gartner’s Earnings Call Highlights AI and Growth Amid Challenges

Gartner’s recent earnings call painted a picture of robust financial health and strategic foresight, despite some external challenges. The sentiment was generally positive, with the company showcasing its strong performance metrics and innovative initiatives, particularly in the realm of artificial intelligence (AI). However, the discussion also acknowledged hurdles such as U.S. federal government policies and tariff impacts, which have tempered contract value growth and prolonged sales cycles.

Gartner Reports Strong Q2 Financial Results and Initiatives

On August 5, 2025, Gartner reported its second-quarter financial results, highlighting a revenue increase of 5.7% to $1.7 billion and a net income rise of 4.9% to $241 million. The company also announced an additional $700 million share repurchase authorization, supplementing the previous $5.3 billion authorization, and the rollout of AskGartner, an AI-powered tool to enhance client experience. These developments indicate Gartner’s strong financial performance and strategic initiatives to enhance shareholder value and client engagement.

The most recent analyst rating on (IT) stock is a Hold with a $505.00 price target. To see the full list of analyst forecasts on Gartner stock, see the IT Stock Forecast page.