Gartner (IT) AI Stock Analysis

• Market Cap: $16.65B
• Dividend Yield: N/A
• Average Volume (3M): 1.02M
• Price to Earnings (P/E): 20.3
• Beta (1Y): 0.86
• Revenue Growth: 5.24%
• EPS Growth: -16.05%
• Country: US
• Employees: 21,107
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 2.76
• Shares Outstanding: 72,077,150
• 10 Day Avg. Volume: 1,058,810
• 30 Day Avg. Volume: 1,021,699
• PEG Ratio: 0.68
• Price to Book (P/B): 27.73
• Price to Sales (P/S): 6.01
• P/FCF Ratio: 27.24
• Enterprise Value/Market Cap: 1.27
• Enterprise Value/Revenue: 3.27
• Enterprise Value/Gross Profit: 4.80
• Enterprise Value/Ebitda: 16.57
• 1Y Price Target: $274.57
• Price Target Upside: 21.01% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 10
• EPS Forecast (FY): 12.21
• Revenue Forecast (FY): $6.49B

• Rating: 69 Neutral
• Price Target: $249.00 ▲(9.74% Upside)

Gartner's strong earnings performance and attractive valuation are key strengths, driving a positive outlook. However, technical indicators suggest bearish momentum, and profitability pressures remain a concern. The company's strategic focus on AI and operational efficiencies supports future growth potential.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term expansion and stability.

AI Demand and Development

High demand for AI insights positions Gartner as a leader in a growing field, enhancing its competitive edge and future growth prospects.

Financial Stability

Reduced leverage enhances financial stability, providing Gartner with greater flexibility to invest in growth opportunities and withstand economic fluctuations.

Negative Factors

Profitability Pressures

Declining margins suggest rising costs or pricing pressures, which could impact long-term profitability if not addressed.

Consulting Revenue Decrease

A decline in consulting revenue indicates potential challenges in this segment, which may affect overall revenue diversification and growth.

Challenges with U.S. Federal Contracts

Low retention rates for federal contracts could lead to revenue volatility and impact Gartner's ability to secure stable government business.

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 shows strong revenue growth and improved leverage, but faces pressure on profitability margins and a low equity ratio. Cash flow management is robust, yet recent declines in free cash flow present challenges.

Income Statement

Gartner has demonstrated strong revenue growth with a TTM increase of 6.19%, indicating a positive trajectory. However, the gross profit margin has decreased from 67.72% in 2024 to 51.92% in TTM, suggesting potential cost pressures. The net profit margin also declined from 20.00% in 2024 to 13.71% in TTM, impacting overall profitability. Despite these challenges, the company maintains a healthy EBIT margin of 15.26% and EBITDA margin of 18.96% in TTM.

Balance Sheet

The debt-to-equity ratio has improved significantly from 13.86 in 2022 to 0.53 in TTM, indicating reduced leverage and improved financial stability. However, the return on equity has decreased from 92.24% in 2024 to 71.62% in TTM, reflecting a decline in profitability relative to shareholder equity. The equity ratio remains low, suggesting potential risks in asset financing.

Cash Flow

Gartner's free cash flow has decreased by 19.56% in TTM, indicating potential challenges in cash generation. However, the operating cash flow to net income ratio remains stable at 0.38, and the free cash flow to net income ratio is strong at 0.91, suggesting efficient cash conversion from earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.46B	6.27B	5.91B	5.48B	4.73B	4.10B
Gross Profit	4.40B	4.24B	4.00B	3.78B	3.29B	2.75B
EBITDA	1.27B	1.72B	1.47B	1.35B	1.30B	660.75M
Net Income	885.65M	1.25B	882.47M	807.80M	793.56M	266.75M
Balance Sheet
Total Assets	7.25B	8.53B	7.84B	7.30B	7.42B	7.32B
Cash, Cash Equivalents and Short-Term Investments	1.43B	1.93B	1.32B	698.00M	756.49M	712.58M
Total Debt	2.85B	2.90B	3.07B	3.16B	3.25B	2.84B
Total Liabilities	6.69B	7.18B	7.16B	7.07B	7.05B	6.23B
Stockholders Equity	556.55M	1.36B	680.63M	227.80M	371.06M	1.09B
Cash Flow
Free Cash Flow	1.22B	1.38B	1.05B	993.37M	1.25B	819.39M
Operating Cash Flow	1.33B	1.48B	1.16B	1.10B	1.31B	903.28M
Investing Cash Flow	-115.25M	-103.74M	54.16M	-117.56M	-80.47M	-83.89M
Financing Cash Flow	-1.56B	-710.14M	-588.88M	-1.03B	-1.16B	-416.22M

Gartner Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 226.89
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 226.89 is below the 20-day moving average (MA) of 240.54, below the 50-day MA of 246.12, and below the 200-day MA of 360.73, indicating a bearish trend. The MACD of -5.74 indicates Positive momentum. The RSI at 38.49 is Neutral, neither overbought nor oversold. The STOCH value of 26.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IT.

Gartner Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ACN	80 Outperform	$152.06B	20.18	25.82%	2.53%	7.36%	6.18%
CTSH	80 Outperform	$35.05B	16.83	14.50%	1.73%	7.44%	-4.57%
EPAM	74 Outperform	$9.89B	27.13	10.21%	―	14.26%	-15.49%
INFY	74 Outperform	$70.44B	21.10	29.15%	3.07%	4.62%	1.06%
WIT	73 Outperform	$28.86B	17.52	16.39%	3.14%	-1.97%	48.61%
IT	69 Neutral	$16.65B	20.26	109.26%	―	5.24%	-16.05%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Gartner Corporate Events

Gartner Reports Mixed Q3 2025 Financial Results

Gartner, Inc. is a leading research and advisory company that provides business and technology insights to help organizations make informed decisions and improve performance. Operating in the information technology sector, Gartner is known for its comprehensive research and analysis services.

Gartner’s Q3 2025 Earnings: Strong Growth Amid Challenges

Gartner’s recent earnings call for Q3 2025 painted a picture of robust financial health, marked by significant gains in revenue and earnings per share (EPS). The company demonstrated strong client engagement and retention, with a notable demand for AI insights. However, challenges were noted in U.S. federal contracts and certain tariff-impacted industries, alongside a decline in new business and consulting revenue.

Gartner Launches AI Tool Amidst Q3 Financial Update

Gartner reported its financial results for the third quarter of 2025, showing a revenue increase of 2.7% to $1.5 billion, although net income dropped significantly by 91.5% to $35 million. The company completed a significant stock repurchase of over $1 billion and launched a new AI-powered tool, AskGartner, to enhance client experience. Gartner’s adjusted EBITDA increased slightly, and the company updated its financial outlook for the year, expecting contract value acceleration in 2026.

The most recent analyst rating on (IT) stock is a Buy with a $286.00 price target. To see the full list of analyst forecasts on Gartner stock, see the IT Stock Forecast page.

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.