Gartner (IT) AI Stock Analysis

• Market Cap: $18.41B
• Dividend Yield: N/A
• Average Volume (3M): 1.55M
• Price to Earnings (P/E): 15.2
• Beta (1Y): 0.98
• Revenue Growth: 5.89%
• EPS Growth: 54.53%
• Country: US
• Employees: 21,107
• Sector: Technology
• Sector Strength: 83
• Industry: Information Technology Services
• EPS (TTM): 3.53
• Shares Outstanding: 75,735,794
• 10 Day Avg. Volume: 1,675,691
• 30 Day Avg. Volume: 1,547,875
• 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: 1.73
• Enterprise Value/Revenue: 4.97
• Enterprise Value/Gross Profit: 7.32
• Enterprise Value/Ebitda: 23.03
• 1Y Price Target: $285.75
• Price Target Upside: 15.99% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 9

• Rating: 77 Outperform
• Price Target: $275.00 ▲(11.63% Upside)

Gartner's strong financial performance and strategic focus on AI initiatives are key strengths, supporting future growth prospects. However, high leverage and external challenges from U.S. federal policies and tariffs present risks that need to be managed.

Positive Factors

Financial Performance

Strong cost discipline contributed to significant beats in adjusted EBITDA and margin.

Stock Valuation

Shares look inexpensive on most measures, with potential to recover to stronger growth.

Negative Factors

AI Disruption Risk

Growing concerns about the potential disruption risk from generative AI are a clear driver to the stock’s de-rating.

Revenue and Sales

A softer selling environment and elevated macroeconomic uncertainty led management to lower its full-year revenue outlook.

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 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	1.39B	1.77B	1.47B	1.35B	1.35B	765.68M
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: Negative
• Last Price: 246.36
• 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 Negative. The current price of 246.36 is below the 20-day moving average (MA) of 254.08, below the 50-day MA of 329.80, and below the 200-day MA of 437.00, indicating a bearish trend. The MACD of -25.89 indicates Negative momentum. The RSI at 30.65 is Neutral, neither overbought nor oversold. The STOCH value of 50.19 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
EPAM	78 Outperform	$9.48B	24.28	11.36%	―	9.73%	-0.29%
IT	77 Outperform	$18.41B	15.15	116.13%	―	5.89%	54.53%
INFY	75 Outperform	$72.49B	22.27	30.46%	2.92%	4.52%	-0.22%
CTSH	74 Outperform	$35.01B	14.65	16.69%	1.70%	6.34%	12.16%
WIT	73 Outperform	$30.10B	21.31	16.50%	2.94%	-1.95%	62.75%
ACN	70 Outperform	$159.09B	20.38	27.27%	2.30%	6.21%	14.87%
Sector *	61 Neutral	$35.62B	7.50	-10.94%	1.87%	8.86%	-10.27%

Gartner Corporate Events

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.

Gartner’s 2025 Stockholders Meeting Decisions Announced

The 2025 Annual Meeting of Stockholders for Gartner, Inc. took place on May 29, 2025, where three proposals were voted on. The election of eleven nominees to the Board of Directors saw varying levels of support, with José M. Gutiérrez receiving the highest number of votes in favor. The compensation of the company’s named executive officers was approved on an advisory basis, and KPMG LLP was ratified as the independent registered public accounting firm for the 2025 fiscal year. These decisions are expected to influence Gartner’s governance and operational strategies moving forward.

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.