Gartner (IT) AI Stock Analysis

• Market Cap: $16.38B
• Dividend Yield: N/A
• Average Volume (3M): 926.53K
• Price to Earnings (P/E): 20.1
• Beta (1Y): 0.81
• 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: 708,226
• 30 Day Avg. Volume: 926,535
• 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: 1.29
• Enterprise Value/Revenue: 3.27
• Enterprise Value/Gross Profit: 4.80
• Enterprise Value/Ebitda: 16.57
• 1Y Price Target: $272.71
• Price Target Upside: 18.12% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 9
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: $247.00 ▲(6.98% Upside)

Gartner's overall stock score reflects a combination of strong earnings performance and strategic initiatives, such as AI development and share repurchases. However, technical indicators suggest bearish momentum, and profitability margins are under pressure. The company's valuation is reasonable, but the lack of a dividend yield may deter some investors.

Positive Factors

Revenue Growth

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

AI Development

Investment in AI positions Gartner as a leader in tech advisory, enhancing client value and future growth potential.

Share Repurchase Program

Aggressive share buybacks reflect management's confidence in the company's financial health and commitment to shareholder value.

Negative Factors

Profitability Margins

Declining margins suggest cost pressures that could impact profitability, requiring strategic adjustments to maintain financial health.

New Business Decline

A decline in new business growth could indicate challenges in market expansion and client acquisition, affecting future revenue streams.

Consulting Revenue Decrease

Decreasing consulting revenue may reflect competitive pressures or shifting client needs, impacting a key revenue segment.

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 its research primarily through a subscription service that include on-demand access to published research content, data and benchmarks, and direct access to a network of research experts. The Conferences segment offers business professionals in an organization the opportunity to learn, share, and network. The Consulting segment offers market research, custom analysis, and on-the-ground support services. This segment also offers actionable solutions for IT-related priorities, including IT cost optimization, digital transformation, and IT sourcing optimization. Gartner, Inc. was founded in 1979 and is headquartered in Stamford, Connecticut.

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 based on the level of access and the number of users. Additionally, Gartner earns revenue from hosting conferences and seminars that bring together industry leaders and technology professionals, providing networking opportunities and knowledge sharing. The company also partners with technology vendors and enterprises for custom research and consulting services, further diversifying its revenue streams. Overall, Gartner's focus on high-quality, actionable insights and strong client relationships has established a sustainable and profitable business model.

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: Neutral
• Last Price: 230.88
• 50DMA: Negative
• 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 230.88 is above the 20-day moving average (MA) of 229.95, below the 50-day MA of 238.54, and below the 200-day MA of 337.55, indicating a neutral trend. The MACD of -2.36 indicates Negative momentum. The RSI at 47.32 is Neutral, neither overbought nor oversold. The STOCH value of 34.34 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	80 Outperform	$165.27B	21.93	25.82%	2.23%	7.36%	6.18%
CTSH	79 Outperform	$39.07B	18.77	14.50%	1.49%	7.44%	-4.57%
INFY	76 Outperform	$73.95B	22.49	29.15%	2.65%	4.62%	1.06%
FISV	68 Neutral	$35.35B	10.24	13.64%	―	5.16%	24.92%
IT	67 Neutral	$16.38B	20.11	109.26%	―	5.24%	-16.05%
FIS	64 Neutral	$33.75B	205.26	1.15%	2.40%	4.26%	-75.98%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Gartner Corporate Events

Gartner Completes $800M Senior Notes Offering

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 use to repay borrowings under its revolving credit facility and for general corporate purposes, including potential stock repurchases. The issuance of these senior unsecured obligations, which include covenants and options for redemption, is expected to impact Gartner’s financial strategy and market positioning.

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.

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.