Gartner (IT) AI Stock Analysis

• Market Cap: $25.29B
• Dividend Yield: N/A
• Average Volume (3M): 895.26K
• Price to Earnings (P/E): 20.4
• Beta (1Y): 1.12
• Revenue Growth: 5.99%
• EPS Growth: 59.74%
• Country: US
• Employees: 21,107
• Sector: Technology
• Sector Strength: 92
• Industry: Information Technology Services
• EPS (TTM): 3.53
• Shares Outstanding: 76,966,934
• 10 Day Avg. Volume: 854,062
• 30 Day Avg. Volume: 895,264
• 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: 1.32
• Enterprise Value/Revenue: 5.21
• Enterprise Value/Gross Profit: 10.42
• Enterprise Value/Ebitda: 25.08
• 1Y Price Target: $397.90
• Price Target Upside: 63.12% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 75 Outperform
• Price Target: $379.00 ▲(55.37% Upside)

The overall stock score reflects Gartner's strong financial performance and strategic initiatives, offset by bearish technical indicators and moderate valuation. The company's proactive measures in response to macroeconomic challenges and focus on enhancing shareholder value contribute positively.

Positive Factors

Cost management

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

Financial performance

Revenue exceeded expectations with broad-based upside across insights, consulting, and conferences.

Negative Factors

AI competition

There is an emerging bear thesis on AI taking share from IT, leading to contract downsizing.

Federal contracts

Federal government contract non-renewals are expected to be a headwind, impacting CV growth.

Revenue outlook

Full-year revenue guidance was lowered, reflecting weakness in insights and a weaker-than-expected selling environment outside U.S. federal.

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 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 demonstrates strong financial health with robust revenue and profit growth, effective cost management, and efficient cash flow generation. Despite high leverage, the company is improving its equity position, enhancing financial stability.

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	6.42B	6.27B	5.91B	5.48B	4.73B	4.10B
Gross Profit	3.21B	4.24B	4.00B	3.78B	3.29B	2.75B
EBITDA	1.33B	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	311.51M	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: 243.93
• 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 243.93 is below the 20-day moving average (MA) of 352.25, below the 50-day MA of 389.27, and below the 200-day MA of 459.41, indicating a bearish trend. The MACD of -23.51 indicates Positive momentum. The RSI at 10.46 is Positive, neither overbought nor oversold. The STOCH value of 14.81 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
IT	75 Outperform	$25.29B	20.44	113.19%	―	5.99%	59.74%
INFY	75 Outperform	$70.08B	21.22	30.46%	3.09%	4.52%	-0.22%
CTSH	74 Outperform	$34.48B	14.33	16.69%	1.73%	6.34%	12.16%
WIT	71 Outperform	$29.17B	20.18	16.50%	3.09%	-1.95%	62.75%
ACN	70 Outperform	$159.06B	20.32	27.27%	2.32%	6.21%	14.87%
EPAM	65 Neutral	$8.55B	21.11	11.57%	―	4.72%	-3.06%
Sector *	61 Neutral	₹302.82B	41.93	10.23%	1.20%	11.49%	1.56%

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.

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.