Gartner (IT) AI Stock Analysis

• Market Cap: $30.74B
• Dividend Yield: N/A
• Average Volume (3M): 613.51K
• Price to Earnings (P/E): 24.8
• Beta (1Y): 1.12
• Revenue Growth: 5.99%
• EPS Growth: 59.74%
• Country: US
• Employees: 21,107
• Sector: Technology
• Sector Strength: 82
• Industry: Information Technology Services
• EPS (TTM): 2.98
• Shares Outstanding: 76,966,934
• 10 Day Avg. Volume: 743,523
• 30 Day Avg. Volume: 613,515
• PEG Ratio: 4.15
• Price to Book (P/B): 118.31
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 27.13
• Enterprise Value/Market Cap: 0.96
• Enterprise Value/Revenue: 1.19
• Enterprise Value/Gross Profit: 6.94
• Enterprise Value/Ebitda: 4.59
• 1Y Price Target: $479.38
• Price Target Upside: 20.03% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 80 Outperform
• Price Target: $504.00 ▲(26.20%Upside)

Gartner's overall stock score is driven by strong financial performance and positive earnings call outcomes, indicating robust growth and profitability. While technical indicators suggest bullish momentum, high valuation metrics and macroeconomic challenges present potential risks. The company’s strategic focus on expanding sales and optimizing contracts highlights proactive growth management.

Positive Factors

Cost Control

Strong cost control drove sizable beats across adjusted EBITDA, margin, and adjusted EPS.

Tech Vendor Performance

Technology vendors were a bright spot, with CV growth among these clients improving for the fourth consecutive quarter.

Negative Factors

Revenue Guidance

There is an expectation for Gartner to likely lower its revenue guidance due to the macroeconomic slowdown.

Sales Environment

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. is a leading research and advisory company specializing in providing insights, advice, and tools for leaders in IT, finance, human resources, customer service, and supply chain functions within organizations. The company operates in several sectors, including IT, marketing, and legal, offering core services that include research, consulting, and conferences to help clients make informed decisions and stay ahead of market trends.

How the Company Makes Money

Gartner makes money primarily through its research and advisory services, which provide clients with access to proprietary research, data, and expert advice. The company's revenue model is based on subscription fees for access to its research content and advisory services. Key revenue streams include research subscriptions, consulting engagements, and conference fees. Gartner's consulting services offer customized solutions to address specific client challenges, while its conferences provide networking opportunities and insights into industry trends. Partnerships with industry leaders, as well as a strong reputation for delivering high-quality, actionable insights, also contribute significantly to its earnings.

Gartner Financial Statement Overview

Summary

Gartner exhibits strong financial health with robust revenue and profit growth, effective cost management, and efficient cash flow generation. While the company is highly leveraged, it is gradually improving its equity position, enhancing financial stability. Overall, Gartner is well-positioned for continued growth and profitability in the information technology services industry.

Income Statement

Gartner has demonstrated strong revenue growth with a TTM increase of 6.7% compared to the previous year. Gross profit margin stands at a robust 67% TTM, indicating efficient production and service delivery. Net profit margin is impressive at 19.8% TTM, reflecting effective cost control. The EBIT and EBITDA margins are healthy at 18.2% and 27.6% TTM respectively, showcasing operational efficiency. Overall, the company shows strong profitability and growth trends.

Balance Sheet

The debt-to-equity ratio is high at 1.86 TTM, suggesting significant leverage, though it has decreased from previous years. Return on equity is strong at 83.7% TTM, indicating efficient use of equity. The equity ratio is relatively low at 17.7% TTM, reflecting high leverage but an improvement over previous periods. The balance sheet shows a trend of improving equity and decreasing debt levels.

Cash Flow

Operating cash flow to net income ratio is strong at 1.28 TTM, indicating good cash generation relative to net income. Free cash flow has grown by 8.8% TTM, reflecting robust cash flow generation. The free cash flow to net income ratio is healthy at 1.20 TTM, illustrating effective cash conversion. The company demonstrates strong cash flow management with consistent growth.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
6.33B	6.27B	5.91B	5.48B	4.73B	4.10B
	Gross Profit
4.24B	4.24B	4.00B	3.78B	3.29B	2.75B
	EBIT
1.15B	1.16B	1.24B	1.10B	915.75M	490.12M
	EBITDA
1.74B	1.77B	1.47B	1.35B	1.35B	765.68M
	Net Income Common Stockholders
1.25B	1.25B	882.47M	807.80M	793.56M	266.75M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.09B	1.93B	1.32B	698.00M	756.49M	712.58M
	Total Assets
8.48B	8.53B	7.84B	7.30B	7.42B	7.32B
	Total Debt
2.79B	2.90B	3.07B	3.16B	3.25B	2.84B
	Net Debt
694.45M	966.86M	1.75B	2.46B	2.49B	2.13B
	Total Liabilities
6.98B	7.18B	7.16B	7.07B	7.05B	6.23B
	Stockholders Equity
1.50B	1.36B	680.63M	227.80M	371.06M	1.09B
Cash Flow		Free Cash Flow
1.50B	1.38B	1.05B	993.37M	1.25B	819.39M
	Operating Cash Flow
1.61B	1.48B	1.16B	1.10B	1.31B	903.28M
	Investing Cash Flow
-104.65M	-103.74M	54.16M	-117.56M	-80.47M	-83.89M
	Financing Cash Flow
-643.40M	-710.14M	-588.88M	-1.03B	-1.16B	-416.22M

Gartner Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 399.37
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 399.37 is below the 20-day moving average (MA) of 424.89, below the 50-day MA of 422.56, and below the 200-day MA of 481.29, indicating a bearish trend. The MACD of -7.62 indicates Positive momentum. The RSI at 29.27 is Positive, neither overbought nor oversold. The STOCH value of 6.75 is Positive, 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
INFY	80 Outperform	$78.66B	24.47	29.00%	2.80%	3.85%	-0.38%
IT	80 Outperform	$30.74B	24.84	113.19%	―	5.99%	59.74%
ACN	78 Outperform	$191.80B	25.28	27.26%	1.93%	4.10%	9.78%
CTSH	76 Outperform	$39.29B	16.78	16.61%	1.57%	4.09%	14.05%
EPAM	75 Outperform	$9.35B	23.07	11.57%	―	4.72%	-3.06%
WIT	71 Outperform	$31.62B	20.05	16.62%	1.04%	-2.83%	106.18%
Sector *	62 Neutral	$11.95B	9.93	-7.21%	4.85%	7.32%	-8.25%

Gartner Corporate Events

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.

Gartner Reports Strong Q1 2025 Financial Results

On May 6, 2025, Gartner, Inc. reported its financial results for the first quarter of 2025, revealing a revenue increase of 4.2% to $1.5 billion, and a net income rise of 0.2% to $211 million. The company also highlighted a significant growth in operating cash flow by 66% and free cash flow by 73.3%, with a contract value growth of 7%. These results exceeded expectations, and Gartner continues to manage costs effectively while investing in future growth, positioning itself strongly in the market.