Gartner (IT) AI Stock Analysis

• Market Cap: $11.17B
• Dividend Yield: N/A
• Average Volume (3M): 1.61M
• Price to Earnings (P/E): 16.4
• Beta (1Y): 0.82
• Revenue Growth: 5.24%
• EPS Growth: -16.05%
• Country: US
• Employees: 21,107
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 3.94
• Shares Outstanding: 70,450,294
• 10 Day Avg. Volume: 2,952,140
• 30 Day Avg. Volume: 1,614,951
• PEG Ratio: -0.62
• Price to Book (P/B): 56.78
• Price to Sales (P/S): 2.80
• P/FCF Ratio: 15.46
• Enterprise Value/Market Cap: 1.19
• Enterprise Value/Revenue: 2.04
• Enterprise Value/Gross Profit: 3.02
• Enterprise Value/Ebitda: 10.81
• 1Y Price Target: $187.00
• Price Target Upside: 17.92% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 12
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: $170.00 ▲(7.20% Upside)

The score is supported by solid underlying financial quality (strong margins and cash generation, improving leverage) and a reasonable P/E. It is held back primarily by very weak technicals (price below key moving averages with negative momentum) and a cautious 2026 outlook from the earnings call, including modest growth guidance and a guided EBITDA margin step-down.

Positive Factors

High-margin recurring business

Gartner's Insights segment shows very high contribution margins and a large contract value base, which underpin durable subscription revenue, strong renewal economics and pricing power. This recurring foundation supports stable cash flows and resilience through sales-cycle volatility.

Robust cash generation

Consistent high free cash flow and strong cash conversion indicate persistent internal funding capacity for operations, investments and buybacks. Reliable FCF supports capital allocation flexibility, reduces refinancing risk, and sustains shareholder returns over multiple years.

Improving leverage profile

Material reduction in leverage versus prior years and investment-grade financing provide more financial flexibility. A stronger balance sheet lowers refinancing and covenant risk, enabling continued buybacks and strategic investments while absorbing cyclical earnings swings.

Negative Factors

Earnings and margin volatility

Sharp year-over-year net margin swings highlight volatile earnings power, driven by mix shifts, one-offs or cost changes. Persistent margin volatility undermines forward cash-flow visibility, complicates forecasting, capital allocation and valuation reliability for investors over multiple quarters.

Conservative near-term growth guide

Management's low-single-digit revenue guidance signals limited organic top-line momentum amid a tougher selling environment. Structural slow growth constrains economies of scale and limits the ability to offset cost increases, pressuring medium-term profit expansion.

Consulting weakness & concentration risks

Declining consulting sales and notable U.S. federal contract churn (renewals concentrated in 2025) reduce revenue diversification and raise renewal volatility. Concentration and softer new-business trends can amplify cyclical downturns and slow recovery of contract value growth.

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

Income statement and cash generation are solid (high gross margin, strong operating cash flow/FCF), but 2025 showed notable profitability compression (net margin down sharply vs. 2024) and a steep negative swing in reported free-cash-flow growth. Balance sheet risk has improved with much lower debt-to-equity, yet equity remains relatively thin and ROE volatility signals sensitivity to earnings swings.

Income Statement

Revenue has grown steadily since 2021, with 2025 showing an unusually large jump (reported +58% year over year). Profitability remains strong for the sector, with 2025 gross margin ~67.7% and operating margin ~15.8%. The key weakness is volatility in earnings power: net margin fell sharply in 2025 (~11.2%) versus 2024 (~20.0%), and operating profitability also stepped down, suggesting higher costs, mix shift, or one-time headwinds despite strong top-line growth.

Balance Sheet

Leverage has improved meaningfully over time, with debt-to-equity dropping from very high levels in 2021–2022 to ~0.86 in 2025, which is a clear positive. However, equity remains relatively thin versus the asset base, and returns on equity are extremely volatile (including a very high 2025 reading), which can signal a capital structure that amplifies swings in bottom-line results. Overall: improving balance-sheet risk profile, but still not as consistently stable as best-in-class peers.

Cash Flow

Cash generation is a strength: 2025 operating cash flow (~$1.29B) and free cash flow (~$1.18B) are robust, and free cash flow remains well-aligned with earnings (free cash flow is ~91% of net income in 2025, similar to prior years). The main concern is growth consistency—free cash flow growth turned sharply negative in 2025 (reported -334.7%) after years of generally positive expansion, indicating potential timing effects, working-capital swings, or heavier cash uses versus the prior year.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	6.50B	6.27B	5.91B	5.48B	4.73B
Gross Profit	4.40B	4.24B	4.00B	3.78B	3.29B
EBITDA	1.23B	1.72B	1.47B	1.35B	1.30B
Net Income	729.18M	1.25B	882.47M	807.80M	793.56M
Balance Sheet
Total Assets	8.09B	8.53B	7.84B	7.30B	7.42B
Cash, Cash Equivalents and Short-Term Investments	1.72B	1.93B	1.32B	698.00M	756.49M
Total Debt	3.62B	2.90B	3.07B	3.16B	3.25B
Total Liabilities	7.77B	7.18B	7.16B	7.07B	7.05B
Stockholders Equity	319.91M	1.36B	680.63M	227.80M	371.06M
Cash Flow
Free Cash Flow	1.18B	1.38B	1.05B	993.37M	1.25B
Operating Cash Flow	1.29B	1.48B	1.16B	1.10B	1.31B
Investing Cash Flow	-115.14M	-103.74M	54.16M	-117.56M	-80.47M
Financing Cash Flow	-1.44B	-710.14M	-588.88M	-1.03B	-1.16B

Gartner Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 158.58
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• 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 158.58 is below the 20-day moving average (MA) of 190.92, below the 50-day MA of 221.70, and below the 200-day MA of 289.91, indicating a bearish trend. The MACD of -21.67 indicates Positive momentum. The RSI at 25.86 is Positive, neither overbought nor oversold. The STOCH value of 48.01 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
INFY	80 Outperform	$61.18B	18.97	32.85%	2.58%	4.62%	1.06%
ACN	77 Outperform	$137.97B	18.54	25.35%	2.25%	6.58%	1.19%
CTSH	71 Outperform	$31.83B	14.59	15.16%	1.46%	7.44%	-4.57%
FISV	68 Neutral	$31.93B	9.37	13.17%	―	5.16%	24.92%
FIS	64 Neutral	$24.24B	147.40	1.15%	2.40%	4.26%	-75.98%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
IT	61 Neutral	$11.17B	16.43	86.85%	―	5.24%	-16.05%

Gartner Corporate Events

Gartner Reports Mixed 2025 Results, Expands Share Repurchases

On February 3, 2026, Gartner reported its fourth-quarter and full-year 2025 results, showing modest revenue growth but significantly lower profitability and cash generation, while stepping up capital returns to shareholders. Fourth-quarter 2025 revenue rose 2% year on year to $1.75 billion (flat on a currency-neutral basis), but net income fell 39% to $242 million and diluted EPS dropped 34% to $3.36; adjusted EBITDA grew 5% to $436 million, even as operating cash flow declined 12% to $295 million and free cash flow fell 13% to $271 million. For full-year 2025, revenue increased 4% to $6.5 billion, yet net income slid 42% to $0.7 billion and diluted EPS fell 40% to $9.65, with adjusted EBITDA up 4% to $1.6 billion and free cash flow down 15% to $1.2 billion. Contract value reached $5.2 billion, up 1% year on year on an FX-neutral basis, with Global Technology Sales flat and Global Business Sales up 3%, while segment performance was mixed, as Insights and Conferences grew but Consulting and Other revenues declined. Despite the profit pressure, Gartner repurchased 7.0 million shares for $2.0 billion in 2025, reducing its share count by 8%, and on January 29, 2026 its board authorized an additional $500 million in share repurchases on top of an existing $7.0 billion program, reinforcing an aggressive capital-return strategy that follows its first investment-grade bond issuance and an agreement to divest the Digital Markets business, moves that collectively reshape its balance sheet and portfolio ahead of an expected acceleration in contract value in 2026.

The most recent analyst rating on (IT) stock is a Buy with a $249.00 price target. To see the full list of analyst forecasts on Gartner stock, see the IT Stock Forecast page.

Gartner Adds AI and Investment Experts to Board

On January 29, 2026, Gartner appointed MIT artificial intelligence and robotics expert Professor Daniela Rus and veteran investment executive Edward Bousa to its Board of Directors, expanding the board to 13 members, 12 of whom are independent, with Rus joining the Governance Committee and Bousa the Audit Committee. The appointments bring deep AI, data science and academic research credentials alongside extensive global investment and capital‑markets experience to Gartner’s board, reinforcing the company’s strategic focus on artificial intelligence and investor‑oriented value creation as it executes on its growth initiatives in a more complex business and technology environment.

The most recent analyst rating on (IT) stock is a Hold with a $275.00 price target. To see the full list of analyst forecasts on Gartner stock, see the IT Stock Forecast page.

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.

The most recent analyst rating on (IT) stock is a Sell with a $218.00 price target. To see the full list of analyst forecasts on Gartner stock, see the IT Stock Forecast page.