Gartner (IT)
NYSE:IT
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Gartner
(NYSE:IT)
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Rating:61Neutral
Price Target:
$170.00
▲(7.70% Upside)
Action:ReiteratedDate:02/13/26
The score is supported by solid underlying financial quality (strong margins and cash generation, improving leverage) and a reasonable P/E. It is held back primarily by very weak technicals (price below key moving averages with negative momentum) and a cautious 2026 outlook from the earnings call, including modest growth guidance and a guided EBITDA margin step-down.
Positive Factors
High-margin recurring business
Gartner's Insights segment shows very high contribution margins and a large contract value base, which underpin durable subscription revenue, strong renewal economics and pricing power. This recurring foundation supports stable cash flows and resilience through sales-cycle volatility.
Negative Factors
Earnings and margin volatility
Sharp year-over-year net margin swings highlight volatile earnings power, driven by mix shifts, one-offs or cost changes. Persistent margin volatility undermines forward cash-flow visibility, complicates forecasting, capital allocation and valuation reliability for investors over multiple quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
High-margin recurring business
Gartner's Insights segment shows very high contribution margins and a large contract value base, which underpin durable subscription revenue, strong renewal economics and pricing power. This recurring foundation supports stable cash flows and resilience through sales-cycle volatility.
Read all positive factors
Gartner (IT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$11.12B
Dividend YieldN/A
Average Volume (3M)1.58M
Price to Earnings (P/E)24.9
Beta (1Y)0.75
Revenue Growth5.24%
EPS Growth-16.05%
CountryUS
Employees21,107
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)3.94
Shares Outstanding70,450,294
10 Day Avg. Volume1,539,942
30 Day Avg. Volume1,578,250
Financial Highlights & Ratios
PEG Ratio-0.62
Price to Book (P/B)56.78
Price to Sales (P/S)2.80
P/FCF Ratio15.46
Enterprise Value/Market Cap1.17
Enterprise Value/Revenue2.00
Enterprise Value/Gross Profit2.96
Enterprise Value/Ebitda10.58
Forecast
1Y Price Target
$184.82Price Target Upside17.09% Upside
Rating ConsensusHold
Number of Analyst Covering12
EPS Forecast (FY)13.27
Revenue Forecast (FY)$6.55B
Gartner Business Overview & Revenue Model
Company Description
Gartner, Inc. operates as a research and advisory company in the United States, Canada, Europe, the Middle East, Africa, and internationally. It operates through three segments: Research, Conferences, and Consulting. The Research segment delivers ...
How the Company Makes Money
Gartner generates revenue primarily through subscription-based services, which include access to its extensive research reports, data analytics, and advisory services for clients across various industries. These subscriptions are often tiered base...
Gartner Key Performance Indicators (KPIs)
Any
Revenue by Segment
Breaks down revenue across different business segments, showing where the company is generating the most income and identifying key growth drivers or areas of concern.
Breaks down revenue across different business segments, showing where the company is generating the most income and identifying key growth drivers or areas of concern.
Data provided by:
The Fly
The FlyGartner Earnings Call Summary
Earnings Call Date:Feb 03, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 05, 2026
Earnings Call Sentiment Neutral
The call reflected a mix of positive operational and financial execution (Q4 and full-year beats, strong EBITDA, free cash flow, ROIC, successful $2B buybacks, and product momentum in AI and AskGartner) alongside meaningful near-term headwinds (a tougher selling environment, modest contract value growth, weaker consulting and new-business trends, and a margin guide below 2025). Management emphasized a multi-quarter transformation (impact, volume, timeliness, user experience) intended to drive CV acceleration through 2026 and beyond, but acknowledged that benefits will phase in over multiple quarters/years. Overall, progress on profitability, cash generation and strategic actions is offset by conservative 2026 growth guidance and several industry- and government-driven challenges.Positive Updates
Quarterly and Full-Year Revenue Beat
Q4 revenue of $1.8B (+2% year-over-year reported, FX neutral) and full-year revenue of $6.5B (+4% reported, +3% FX neutral), with Q4 results ahead of expectations.
Negative Updates
Challenging Selling Environment and Slower Contract Value Growth
Macro and policy factors (U.S. federal headwinds, tariffs, funding shifts) caused extended buying cycles and elevated deal approval scrutiny. Q4 contract value grew only 1% YoY overall (ex-federal +4%).
Read all updates
Q4-2025 Updates
Positive
Negative
Quarterly and Full-Year Revenue Beat
Q4 revenue of $1.8B (+2% year-over-year reported, FX neutral) and full-year revenue of $6.5B (+4% reported, +3% FX neutral), with Q4 results ahead of expectations.
Read all positive updates
Company Guidance
Gartner’s 2026 guidance (ex‑Digital Markets) calls for Insights revenue of ≥$5.9B (~+1% FX‑neutral), Conferences ≥$695M (~+7% FX‑neutral, based on 56 in‑person destination conferences), Consulting ≥$570M (~+3% FX‑neutral) and consolidated revenue ≥$6.455B (~+2% FX‑neutral); full‑year EBITDA ≥$1.515B (margin ≥23.5%), adjusted EPS ≥$12.30 (plan assumes ~71M shares outstanding, only offsetting dilution), free cash flow ≥$1.135B (≈140% conversion of GAAP net income), Q1 adjusted EBITDA ≥$370M, with Jan FX rates expected to benefit full‑year revenue by ~110bps and EBITDA by ~170bps; operating expenses are modeled off Q4 run‑rate with April merit increases (opex plan ≈+5% YoY, ≈+4% FX‑net), GTS QBH growth expected low single‑digits, GBS QBH mid single‑digits, and management expects CV growth to accelerate through 2026 with typical seasonality (Q4 largest, Q2 strong for conference gross margins).Gartner Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
52
Neutral
Cash Flow
74
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 6.50B | 6.27B | 5.91B | 5.48B | 4.73B |
| Gross Profit | 4.40B | 4.24B | 4.00B | 3.78B | 3.29B |
| EBITDA | 1.23B | 1.72B | 1.47B | 1.35B | 1.30B |
| Net Income | 729.18M | 1.25B | 882.47M | 807.80M | 793.56M |
Balance Sheet | |||||
| Total Assets | 8.09B | 8.53B | 7.84B | 7.30B | 7.42B |
| Cash, Cash Equivalents and Short-Term Investments | 1.72B | 1.93B | 1.32B | 698.00M | 756.49M |
| Total Debt | 3.62B | 2.90B | 3.07B | 3.16B | 3.25B |
| Total Liabilities | 7.77B | 7.18B | 7.16B | 7.07B | 7.05B |
| Stockholders Equity | 319.91M | 1.36B | 680.63M | 227.80M | 371.06M |
Cash Flow | |||||
| Free Cash Flow | 1.18B | 1.38B | 1.05B | 993.37M | 1.25B |
| Operating Cash Flow | 1.29B | 1.48B | 1.16B | 1.10B | 1.31B |
| Investing Cash Flow | -115.14M | -103.74M | 54.16M | -117.56M | -80.47M |
| Financing Cash Flow | -1.44B | -710.14M | -588.88M | -1.03B | -1.16B |
Gartner Technical Analysis
Negative
157.85
Price Trends
168.84
Negative
203.03
Negative
246.08
Negative
Market Momentum
-3.61
Negative
46.01
Neutral
61.42
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT, the sentiment is Negative. The current price of 157.85 is below the 20-day moving average (MA) of 159.48, below the 50-day MA of 168.84, and below the 200-day MA of 246.08, indicating a bearish trend. The MACD of -3.61 indicates Negative momentum. The RSI at 46.01 is Neutral, neither overbought nor oversold. The STOCH value of 61.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IT.
Gartner Risk Analysis
Gartner disclosed 31 risk factors in its most recent earnings report. Gartner reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Gartner Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $123.60B | 17.31 | 24.82% | 2.25% | 6.58% | 1.19% | |
73 Outperform | $56.75B | 24.55 | 29.68% | 2.58% | 4.62% | 1.06% | |
68 Neutral | $29.91B | 17.90 | 14.84% | 1.46% | 7.44% | -4.57% | |
68 Neutral | $30.03B | 10.60 | 13.64% | ― | 5.16% | 24.92% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | $11.12B | 24.91 | 74.65% | ― | 5.24% | -16.05% | |
61 Neutral | $23.81B | 89.95 | 2.68% | 2.40% | 4.26% | -75.98% |
* Technology Sector Average
IT
Gartner
157.85
-224.72
-58.74%
ACN
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201.33
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CTSH
Cognizant
62.54
-3.66
-5.53%
FIS
Fidelity National Info
46.29
-20.69
-30.89%
FISV
Fiserv
56.16
-142.28
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INFY
Infosys
13.74
-2.63
-16.06%
Gartner Corporate Events
Business Operations and StrategyStock BuybackFinancial DisclosuresM&A TransactionsPrivate Placements and Financing
Gartner Reports Mixed 2025 Results, Expands Share Repurchases
Negative
Feb 3, 2026
On February 3, 2026, Gartner reported its fourth-quarter and full-year 2025 results, showing modest revenue growth but significantly lower profitability and cash generation, while stepping up capital returns to shareholders. Fourth-quarter 2025 re...
Business Operations and StrategyExecutive/Board Changes
Gartner Adds AI and Investment Experts to Board
Positive
Jan 29, 2026
On January 29, 2026, Gartner appointed MIT artificial intelligence and robotics expert Professor Daniela Rus and veteran investment executive Edward Bousa to its Board of Directors, expanding the board to 13 members, 12 of whom are independent, wi...
Business Operations and StrategyStock BuybackPrivate Placements and Financing
Gartner Completes $800M Senior Notes Offering
Neutral
Nov 20, 2025
On November 20, 2025, Gartner, Inc. completed a public offering of $350 million in 4.950% Senior Notes due 2031 and $450 million in 5.600% Senior Notes due 2035. The company received approximately $794.8 million in net proceeds, which it plans to ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.