Gartner (NYSE:IT) Posts Quarterly Earnings Results, Beats Expectations By $0.40 EPS

Gartner (NYSE:IT) released its quarterly earnings results on Tuesday. The information technology services provider reported $3.32 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.92 by $0.40, FiscalAI reports. The company had revenue of $1.49 billion during the quarter, compared to the consensus estimate of $1.51 billion. Gartner had a return on equity of 102.20% and a net margin of 11.22%.The firm’s revenue was down 1.5% on a year-over-year basis. During the same quarter in the prior year, the company posted $2.98 EPS. Gartner updated its FY 2026 guidance to 13.250- EPS.

Here are the key takeaways from Gartner’s conference call:

• Gartner beat Q1 expectations with $1.5B revenue (+2% reported), EBITDA $395M (+6%), adjusted EPS of $3.32 (+11%), and free cash flow of $371M (+29%).
• Management raised full‑year guidance — revenue target at or above $6.405B (FX‑neutral +1%), EBITDA ≥ $1.545B (≥24.1% margin), adjusted EPS ≥ $13.25, and free cash flow ≥ $1.16B.
• Contract value (CV) growth accelerated modestly to 1% Y/Y (3.5% ex‑U.S. federal), but U.S. federal remains a near‑term headwind (~$114M CV) and March geopolitical disruption slowed decision timing before many deals closed in April.
• Capital return and balance sheet actions continue — $535M repurchased in Q1, share count down ~10% Y/Y, board boosted buyback authorization to ~$1.2B, and management plans ongoing buybacks plus tuck‑in M&A to enhance EPS.
• Product and engagement initiatives are gaining traction — high‑impact documents +22%, library +19%, AskGartner improvements and multi‑language support drove digital engagement +160 bps and overall engagement +170 bps, which management expects will lift retention and future CV growth.

Gartner Stock Performance

Gartner stock traded up $0.43 during trading hours on Tuesday, hitting $148.14. The stock had a trading volume of 1,272,455 shares, compared to its average volume of 1,541,576. The company has a 50-day moving average of $155.98 and a two-hundred day moving average of $201.48. The company has a quick ratio of 1.00, a current ratio of 1.00 and a debt-to-equity ratio of 9.30. The company has a market cap of $10.44 billion, a PE ratio of 15.35, a price-to-earnings-growth ratio of 0.89 and a beta of 0.91. Gartner has a fifty-two week low of $139.18 and a fifty-two week high of $451.73.

Trending Headlines about Gartner

Here are the key news stories impacting Gartner this week:

• Positive Sentiment: Gartner beat Q1 EPS estimates — reported $3.32 EPS vs. consensus around ~$2.92 and showed year‑over‑year EPS growth; management hosted a conference call and provided slide materials. Gartner Reports First Quarter 2026 Financial Results
• Positive Sentiment: Gartner raised FY‑2026 EPS guidance to about 13.25 (versus Street ~13.19), signaling management confidence in profitability despite a slight top‑line softness. Gartner Reports First Quarter 2026 Financial Results
• Neutral Sentiment: Revenue narrowly missed expectations: Q1 revenue $1.49B vs. consensus ~$1.51B and was down ~1.5% year‑over‑year, a reminder growth remains uneven across segments. MarketBeat Q1 Coverage
• Neutral Sentiment: Analysts and media are parsing key metrics (margin strength, segment trends, and conference bookings) to judge sustainability of profit gains — see Zacks’ metric breakdown. Zacks: Key Metrics for Gartner Q1
• Negative Sentiment: Multiple class‑action lawsuits and investor notices were filed or announced by several law firms alleging securities law violations tied to the Feb 4, 2025–Feb 2, 2026 period; that increases legal risk, potential costs, and investor uncertainty. Bronstein, Gewirtz & Grossman Class Action Notice
• Negative Sentiment: Other firms (Levi & Korsinsky, Bernstein Liebhard, Portnoy, Rosen, DJS, Schall, etc.) issued filings/alerts; one complaint highlights alleged misstatements about consulting outlook and contract values — watch for consolidation of cases or a lead plaintiff appointment by May 18, 2026. Levi & Korsinsky Investor Alert

Hedge Funds Weigh In On Gartner

Several large investors have recently added to or reduced their stakes in IT. Brighton Jones LLC acquired a new position in Gartner in the 4th quarter valued at approximately $309,000. Sivia Capital Partners LLC acquired a new position in Gartner in the 2nd quarter valued at approximately $336,000. Cresset Asset Management LLC raised its holdings in Gartner by 15.2% in the 2nd quarter. Cresset Asset Management LLC now owns 1,446 shares of the information technology services provider’s stock valued at $585,000 after acquiring an additional 191 shares in the last quarter. Sei Investments Co. raised its holdings in Gartner by 9.2% in the 2nd quarter. Sei Investments Co. now owns 91,205 shares of the information technology services provider’s stock valued at $36,867,000 after acquiring an additional 7,678 shares in the last quarter. Finally, The Manufacturers Life Insurance Company raised its holdings in Gartner by 111.5% in the 2nd quarter. The Manufacturers Life Insurance Company now owns 95,301 shares of the information technology services provider’s stock valued at $38,523,000 after acquiring an additional 50,251 shares in the last quarter. Institutional investors and hedge funds own 91.51% of the company’s stock.

Analyst Ratings Changes

Several analysts have recently issued reports on the company. Wells Fargo & Company decreased their price target on Gartner from $150.00 to $140.00 and set an “underweight” rating for the company in a research note on Friday, March 27th. The Goldman Sachs Group cut Gartner from a “buy” rating to a “neutral” rating and cut their price objective for the stock from $220.00 to $171.00 in a research report on Monday, April 27th. Morgan Stanley cut their price objective on Gartner from $275.00 to $200.00 and set an “equal weight” rating for the company in a research report on Wednesday, February 4th. Robert W. Baird set a $240.00 price objective on Gartner in a research report on Wednesday, February 4th. Finally, BMO Capital Markets reissued a “market perform” rating on shares of Gartner in a research report on Thursday, February 5th. Two investment analysts have rated the stock with a Buy rating, seven have given a Hold rating and two have issued a Sell rating to the company’s stock. According to MarketBeat.com, the stock currently has an average rating of “Hold” and an average price target of $180.40.

About Gartner

Gartner, Inc is a global research and advisory firm that provides insights, advice and tools for leaders in IT, finance, HR, customer service and other business functions. Founded in 1979 and headquartered in Stamford, Connecticut, Gartner specializes in helping organizations make informed decisions about technology, operations and strategy through a combination of published research, advisory services, consulting, executive programs and events.

The company’s offerings include proprietary research reports, market forecasts, and analytical frameworks that are widely used by technology buyers and vendors.