Gartner (NYSE:IT) Posts Quarterly Earnings Results, Beats Estimates By $0.61 EPS

Gartner (NYSE:IT) posted its quarterly earnings data on Tuesday. The information technology services provider reported $4.37 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $3.76 by $0.61, FiscalAI reports. The company had revenue of $1.68 billion for the quarter, compared to analyst estimates of $1.65 billion. Gartner had a net margin of 11.44% and a return on equity of 161.39%. The business’s quarterly revenue was down .6% on a year-over-year basis. During the same quarter last year, the firm posted $3.53 earnings per share. Gartner updated its FY 2026 guidance to 14.000- EPS.

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

• Q2 results exceeded expectations, with revenue of $1.7 billion, EBITDA of $466 million, adjusted EPS of $4.37, and free cash flow of $378 million; adjusted EPS rose 24% year over year.
• Contract value growth accelerated for the second consecutive quarter to 2% overall and 3.3% excluding the U.S. federal government, while engagement, retention, mid-sized enterprise performance, and government business improved.
• Gartner raised its 2026 EBITDA guidance to at least $1.57 billion, adjusted EPS guidance to at least $14, and free cash flow guidance to at least $1.185 billion, citing expense discipline and stronger performance.
• The company repurchased $547 million of stock in Q2, reducing its share count by more than 5% sequentially, and increased its buyback authorization to approximately $1.2 billion.
• Macroeconomic and geopolitical uncertainty continues to pressure clients, causing tighter budgets, delayed decisions, and down-selling—particularly among large enterprises—while Consulting revenue declined to $142 million from $156 million a year ago.

Gartner Stock Up 0.2%

Shares of IT opened at $151.33 on Tuesday. The company has a current ratio of 0.94, a quick ratio of 0.94 and a debt-to-equity ratio of 46.98. The firm has a market capitalization of $10.13 billion, a P/E ratio of 14.95, a P/E/G ratio of 0.83 and a beta of 0.97. The firm has a fifty day moving average price of $144.44 and a 200-day moving average price of $158.78. Gartner has a 12-month low of $124.25 and a 12-month high of $337.29.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in IT. Brighton Jones LLC acquired a new stake in shares of Gartner in the fourth quarter valued at $309,000. Sivia Capital Partners LLC purchased a new position in Gartner during the second quarter worth $336,000. Cresset Asset Management LLC increased its stake in Gartner by 15.2% in the second quarter. Cresset Asset Management LLC now owns 1,446 shares of the information technology services provider’s stock valued at $585,000 after purchasing an additional 191 shares during the last quarter. Sei Investments Co. grew its holdings in shares of Gartner by 9.2% during the 2nd quarter. Sei Investments Co. now owns 91,205 shares of the information technology services provider’s stock worth $36,867,000 after purchasing an additional 7,678 shares during the period. Finally, The Manufacturers Life Insurance Company lifted its position in shares of Gartner by 111.5% during the second quarter. The Manufacturers Life Insurance Company now owns 95,301 shares of the information technology services provider’s stock worth $38,523,000 after purchasing an additional 50,251 shares in the last quarter. Hedge funds and other institutional investors own 91.51% of the company’s stock.

Analysts Set New Price Targets

Several research firms have commented on IT. Weiss Ratings downgraded shares of Gartner from a “sell (d+)” rating to a “sell (d)” rating in a research report on Friday. The Goldman Sachs Group set a $162.00 price objective on Gartner in a report on Tuesday, May 5th. Royal Bank Of Canada lowered their price target on shares of Gartner from $175.00 to $160.00 and set a “sector perform” rating on the stock in a research report on Wednesday, May 6th. UBS Group dropped their price target on shares of Gartner from $170.00 to $164.00 and set a “neutral” rating on the stock in a research report on Friday, June 12th. Finally, Barclays decreased their price target on Gartner from $180.00 to $150.00 and set an “equal weight” rating for the company in a report on Friday, April 10th. Two research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat.com, Gartner has an average rating of “Hold” and a consensus target price of $173.10.

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.