Gartner (IT)
NYSE:IT
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Gartner
(NYSE:IT)
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Rating:65Neutral
Price Target:
$171.00
▲(10.59% Upside)
Action:Reiterated
Date:05/09/26
The score is driven primarily by strong cash generation and a constructive earnings call (raised 2026 EBITDA/EPS/FCF guidance and sizable buybacks). These positives are tempered by balance-sheet leverage risk (very small equity base) and mixed operating momentum (TTM revenue decline and net margin compression), while technicals remain weak on a longer-term basis despite some near-term stabilization. Valuation is supportive with a relatively low P/E.
Positive Factors
Subscription-based recurring revenue & high retention
Gartner’s core subscription model with very high wallet retention creates predictable, recurring revenue and reduces churn-driven volatility. High retention sustains long-term revenue visibility, supports contract upsells/seat expansion, and underpins durable cash generation and planning.
Negative Factors
Very high leverage and a thin equity base
Equity has declined sharply, producing extremely high leverage that reduces balance-sheet flexibility. In a downside scenario this magnifies refinancing and covenant risk, limits acquisitive optionality, and makes operating setbacks more likely to stress liquidity despite healthy cash flow.
Read all positive and negative factors
Positive Factors
Negative Factors
Subscription-based recurring revenue & high retention
Gartner’s core subscription model with very high wallet retention creates predictable, recurring revenue and reduces churn-driven volatility. High retention sustains long-term revenue visibility, supports contract upsells/seat expansion, and underpins durable cash generation and planning.
Read all positive factors
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 (IT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$10.61B
Dividend YieldN/A
Average Volume (3M)1.56M
Price to Earnings (P/E)12.4
Beta (1Y)0.73
Revenue Growth2.30%
EPS Growth-37.31%
CountryUS
Employees21,107
SectorTechnology
Sector Strength88
IndustryConsulting Services
Share Statistics
EPS (TTM)10.14
Shares Outstanding66,951,890
10 Day Avg. Volume1,814,616
30 Day Avg. Volume1,559,596
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 Cap1.14
Enterprise Value/Revenue1.87
Enterprise Value/Gross Profit2.74
Enterprise Value/Ebitda9.60
Forecast
1Y Price Target
$168.13Price Target Upside8.73% Upside
Rating ConsensusHold
Number of Analyst Covering10
EPS Forecast (FY)13.68
Revenue Forecast (FY)$6.45B
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 primarily makes money through a subscription-based model, with the majority of revenue generated from its Research segment. In this segment, clients (typically enterprises, government entities, and technology providers) pay recurring subsc...
Gartner Earnings Call Summary
Earnings Call Date:May 05, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 04, 2026
Earnings Call Sentiment Positive
The call communicated a constructive financial and operational picture: the company beat expectations in the quarter, raised full-year EBITDA, EPS and free cash flow guidance, generated strong free cash flow, materially improved engagement metrics and executed significant buybacks. Offsetting this optimism were near-term headwinds — notably slow contract value growth (only 1% YoY), a March slowdown driven by geopolitical factors (impacting new business timing), a decline in consulting revenue, and a U.S. Federal drag (~250 bps). Management emphasized that many March-delayed deals closed in April and that they expect CV acceleration through 2026, while pursuing disciplined cost and capital deployment strategies. Overall, positive execution and improved guidance outweigh the transitory and macro-driven challenges.Positive Updates
Revenue and Profitability Beat Expectations
First-quarter revenue was $1.5 billion (up 2% year-over-year as reported; down 1% FX-neutral). Adjusted EBITDA was $395 million (up 6% as reported; 1% FX-neutral). Adjusted EPS was $3.32, up 11% year-over-year.
Negative Updates
Slow Contract Value Growth vs. Historical Levels
Total CV growth was only 1% year-over-year in Q1, well below historical high-single/low-double-digit levels; management cited U.S. Federal headwinds and a challenging macro/geopolitical environment as primary causes.
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue and Profitability Beat Expectations
First-quarter revenue was $1.5 billion (up 2% year-over-year as reported; down 1% FX-neutral). Adjusted EBITDA was $395 million (up 6% as reported; 1% FX-neutral). Adjusted EPS was $3.32, up 11% year-over-year.
Read all positive updates
Company Guidance
Gartner raised its 2026 outlook: consolidated revenue at or above $6.405 billion (FX‑neutral growth ~1%), adjusted EBITDA at or above $1.545 billion (margin ≥24.1%), adjusted EPS at or above $13.25 and free cash flow at or above $1.16 billion (about 137% of GAAP net income), based on 69 million fully diluted weighted average shares (exited Q1 with ~68M); Q2 EBITDA is guided at ≥$425 million. Management expects contract value (CV) to accelerate—CV was $5.3 billion at 3/31 (+1% YoY; ex‑Fed +3.5%; U.S. Federal CV ≈ $114M)—and cited Q1 outperformance (Q1 revenue $1.5B, +2% reported / -1% FX‑neutral; EBITDA $395M, +6%; adjusted EPS $3.32, +11%; free cash flow $371M, +29%; rolling 4‑quarter FCF ~$1.3B). The company repurchased $535M of stock in Q1 (share count down ~4%), the Board increased buyback authorization to ~$1.2B, and they finished Q1 with ~$1.7B cash (≈$1.2B available) and ~$3.0B debt (gross debt/TTM EBITDA <2x).Gartner Financial Statement Overview
Summary
Income Statement
68
Positive
Balance Sheet
35
Negative
Cash Flow
82
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.47B | 6.50B | 6.27B | 5.91B | 5.48B | 4.73B |
| Gross Profit | 4.42B | 4.40B | 4.24B | 4.00B | 3.78B | 3.29B |
| EBITDA | 1.26B | 1.23B | 1.72B | 1.47B | 1.35B | 1.30B |
| Net Income | 740.58M | 729.18M | 1.25B | 882.47M | 807.80M | 793.56M |
Balance Sheet | ||||||
| Total Assets | 7.66B | 8.09B | 8.53B | 7.84B | 7.30B | 7.42B |
| Cash, Cash Equivalents and Short-Term Investments | 1.67B | 1.72B | 1.93B | 1.32B | 698.00M | 756.49M |
| Total Debt | 3.26B | 3.62B | 2.90B | 3.07B | 3.16B | 3.25B |
| Total Liabilities | 7.59B | 7.77B | 7.18B | 7.16B | 7.07B | 7.05B |
| Stockholders Equity | 63.38M | 319.91M | 1.36B | 680.63M | 227.80M | 371.06M |
Cash Flow | ||||||
| Free Cash Flow | 1.26B | 1.18B | 1.38B | 1.05B | 993.37M | 1.25B |
| Operating Cash Flow | 1.37B | 1.29B | 1.48B | 1.16B | 1.10B | 1.31B |
| Investing Cash Flow | -5.20M | -115.14M | -103.74M | 54.16M | -117.56M | -80.47M |
| Financing Cash Flow | -1.81B | -1.44B | -710.14M | -588.88M | -1.03B | -1.16B |
Gartner Technical Analysis
Positive
154.62
Price Trends
153.86
Positive
175.47
Negative
209.01
Negative
Market Momentum
-0.33
Negative
56.29
Neutral
68.18
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT, the sentiment is Positive. The current price of 154.62 is above the 20-day moving average (MA) of 150.70, above the 50-day MA of 153.86, and below the 200-day MA of 209.01, indicating a neutral trend. The MACD of -0.33 indicates Negative momentum. The RSI at 56.29 is Neutral, neither overbought nor oversold. The STOCH value of 68.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 | $110.03B | 17.31 | 24.82% | 2.25% | 7.27% | 0.49% | |
73 Outperform | $24.31B | 11.05 | 14.79% | 1.46% | 6.55% | -3.10% | |
73 Outperform | $22.07B | 2.55 | 18.45% | 2.40% | 12.27% | 222.91% | |
73 Outperform | $50.23B | 14.68 | 31.77% | 2.58% | 4.85% | 6.19% | |
65 Neutral | $10.61B | 12.43 | 119.81% | ― | 2.30% | -37.31% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | $30.08B | 13.08 | 12.51% | ― | 1.87% | 3.79% |
* Technology Sector Average
IT
Gartner
157.22
-286.44
-64.56%
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FIS
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43.62
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FISV
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55.82
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INFY
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12.64
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Gartner Corporate Events
Business Operations and StrategyStock BuybackFinancial Disclosures
Gartner Lifts 2026 Outlook on Strong Q1 Profitability
Positive
May 5, 2026
On May 5, 2026, Gartner reported first‑quarter 2026 results showing diluted EPS up 17.3% to $3.18 and adjusted EPS up 11.4% to $3.32, as net income rose 5.4% to $222 million and free cash flow jumped 28.7% to $371 million despite a 1.5% decl...
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.