Gartner (NYSE:IT – Get Free Report) posted its quarterly earnings data on Tuesday. The information technology services provider reported $3.59 EPS for the quarter, beating the consensus estimate of $2.84 by $0.75, Zacks reports. The business had revenue of $1.50 billion during the quarter, compared to analyst estimates of $1.49 billion. Gartner had a net margin of 14.81% and a return on equity of 1,440.35%. The business’s revenue for the quarter was down 1.2% compared to the same quarter last year. During the same quarter last year, the firm posted $2.76 earnings per share.
Here are the key takeaways from Gartner’s conference call:
- Positive Sentiment: Gartner raised its full-year 2026 guidance across revenue, EBITDA, adjusted EPS, and free cash flow after Q3 results exceeded expectations. New targets are at least $6.405 billion in revenue, $1.615 billion in EBITDA, $14.65 in adjusted EPS, and $1.235 billion in free cash flow.
- Positive Sentiment: Contract value growth accelerated for the third consecutive quarter to 2.5% year over year, while wallet retention improved to 98% in GTS and 99% in GBS. Management also reported sequential improvement in net contract value additions and continued strength in GBS subscriptions, software and services, and mid-sized enterprises.
- Positive Sentiment: AI remains the most-requested topic across Gartner’s client base and is creating demand for guidance on business cases, implementation, cost management, and governance. Management said clients that initially purchased broad AI tools are increasingly seeking Gartner’s help after struggling to realize tangible benefits.
- Negative Sentiment: The selling environment remains challenging, with longer sales cycles, renewed technology-sector layoffs, geopolitical tensions affecting the Middle East, and continued pressure from tariffs and other macro factors. Management no longer expects ex-U.S. federal contract value growth to reach 4% by the end of 2026, although total growth is still expected to accelerate.
- Neutral Sentiment: Gartner plans to increase analyst hiring as part of its BTI transformation, adding costs over the next several quarters. The company remains focused on balancing these investments with expense discipline, while continuing price-sensitive stock repurchases and evaluating strategic tuck-in acquisitions.
Gartner Price Performance
Shares of NYSE:IT traded down $8.45 on Thursday, reaching $198.74. 423,552 shares of the company were exchanged, compared to its average volume of 1,450,592. The company has a 50-day moving average of $197.29 and a 200-day moving average of $169.90. The company has a current ratio of 0.88, a quick ratio of 0.88 and a debt-to-equity ratio of 46.98. The firm has a market cap of $12.55 billion, a price-to-earnings ratio of 14.19, a price-to-earnings-growth ratio of 0.79 and a beta of 0.92. Gartner has a 1-year low of $124.25 and a 1-year high of $256.89.
Insider Activity at Gartner
In related news, EVP Yvonne Genovese sold 1,205 shares of Gartner stock in a transaction that occurred on Monday, August 10th. The stock was sold at an average price of $190.06, for a total transaction of $229,022.30. Following the completion of the transaction, the executive vice president directly owned 6,208 shares in the company, valued at $1,179,892.48. The trade was a 16.26% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, EVP Robin B. Kranich sold 3,278 shares of the company’s stock in a transaction that occurred on Thursday, August 27th. The shares were sold at an average price of $196.50, for a total value of $644,127.00. Following the completion of the sale, the executive vice president directly owned 20,358 shares in the company, valued at approximately $4,000,347. The trade was a 13.87% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 6,043 shares of company stock worth $1,172,858 in the last ninety days. Corporate insiders own 2.60% of the company’s stock.
Analyst Ratings Changes
IT has been the topic of several recent research reports. Truist Financial downgraded Gartner from a “buy” rating to a “hold” rating and cut their price target for the stock from $235.00 to $210.00 in a report on Wednesday. Royal Bank Of Canada restated a “sector perform” rating and set a $198.00 price target on shares of Gartner in a research note on Tuesday, October 20th. Zacks Research lowered shares of Gartner from a “strong-buy” rating to a “hold” rating in a research note on Monday, October 5th. UBS Group increased their price target on Gartner from $208.00 to $220.00 and gave the stock a “neutral” rating in a report on Wednesday. Finally, Weiss Ratings downgraded shares of Gartner from a “hold (c-)” rating to a “sell (d+)” rating in a report on Monday, October 26th. Eight investment analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the company’s stock. According to MarketBeat.com, the company currently has a consensus rating of “Reduce” and a consensus price target of $202.70.
View Our Latest Research Report on Gartner
Key Gartner News
Here are the key news stories impacting Gartner this week:
- Positive Sentiment: Gartner reported a third-quarter earnings and revenue beat and raised its 2026 adjusted EPS outlook to at least $14.65, with EBITDA targeted at $1.615 billion or more. Management also said clients are seeking its advice on how to get value from AI. Article
- Neutral Sentiment: Some analysts raised price targets while maintaining neutral or equal-weight ratings: UBS lifted its target to $220, Goldman Sachs to $207, and Morgan Stanley to $192. The target increases offer limited reassurance because the firms remain cautious on the stock.
- Negative Sentiment: Investors focused on sluggish contract-value growth, longer sales cycles and management’s view that a 4% growth pace by year-end is unlikely. The implied fourth-quarter outlook also fell short of Wall Street expectations, reinforcing concerns that growth may take longer to rebound and that lower-cost AI services could pressure Gartner. Article
- Negative Sentiment: Truist downgraded Gartner from Buy to Hold and cut its price target from $235 to $210, a negative analyst signal following the results. Article
Gartner Company Profile
Gartner, Inc is a global research and advisory company that provides information, analysis and guidance to business leaders, technology professionals and public-sector organizations. Its work focuses on helping clients evaluate technology markets, develop business strategies, manage risk and make decisions about digital transformation and other organizational priorities.
The company delivers its services through research and advisory programs, consulting engagements, executive guidance and conferences.
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