Gartner (NYSE:IT) Releases Earnings Results, Beats Expectations By $0.75 EPS

Gartner (NYSE:IT) released its earnings results on Tuesday. The information technology services provider reported $3.59 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.84 by $0.75, Zacks reports. The firm had revenue of $1.50 billion for the quarter, compared to analyst estimates of $1.49 billion. Gartner had a return on equity of 525.46% and a net margin of 11.99%. The company’s revenue was down 1.2% on a year-over-year basis. During the same quarter last year, the firm posted $2.76 EPS.

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 Stock Performance

Shares of IT traded up $6.53 during mid-day trading on Wednesday, hitting $210.75. The stock had a trading volume of 397,368 shares, compared to its average volume of 1,447,680. The company has a debt-to-equity ratio of 46.98, a current ratio of 0.88 and a quick ratio of 0.88. The firm has a market cap of $13.31 billion, a P/E ratio of 18.70, a PEG ratio of 0.89 and a beta of 0.92. Gartner has a 52 week low of $124.25 and a 52 week high of $256.89. The business has a fifty day moving average price of $197.07 and a 200-day moving average price of $170.01.

Wall Street Analysts Forecast Growth

IT has been the subject of a number of research analyst reports. Morgan Stanley lifted their target price on shares of Gartner from $177.00 to $182.00 and gave the company an “equal weight” rating in a research note on Thursday, October 8th. Wells Fargo & Company raised their price target on Gartner from $150.00 to $175.00 and gave the stock an “underweight” rating in a research report on Tuesday, October 20th. BMO Capital Markets reaffirmed a “market perform” rating and set a $231.00 price target on shares of Gartner in a research report on Wednesday. The Goldman Sachs Group upped their target price on Gartner from $162.00 to $181.00 and gave the stock a “neutral” rating in a report on Wednesday, August 5th. Finally, Truist Financial lowered Gartner from a “buy” rating to a “hold” rating and decreased their price objective for the company from $235.00 to $210.00 in a report on Wednesday. Eight investment analysts have rated the stock with a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of “Reduce” and an average price target of $197.90.

Insider Buying and Selling

In other news, EVP Akhil Jain sold 700 shares of the company’s stock in a transaction dated Monday, August 24th. The stock was sold at an average price of $201.73, for a total transaction of $141,211.00. Following the sale, the executive vice president directly owned 8,130 shares in the company, valued at $1,640,064.90. This represents a 7.93% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. Also, EVP Robin Kranich sold 3,278 shares of the company’s stock in a transaction on Thursday, August 27th. The stock was sold at an average price of $196.50, for a total transaction of $644,127.00. Following the completion of the transaction, the executive vice president owned 20,358 shares of the company’s stock, valued at $4,000,347. This trade represents a 13.87% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 6,043 shares of company stock worth $1,172,858 in the last 90 days. 2.60% of the stock is owned by company insiders.

Key Headlines Impacting Gartner

Here are the key news stories impacting Gartner this week:

• Positive Sentiment: Gartner reported Q3 adjusted earnings of $3.59 per share and revenue of about $1.50 billion, both ahead of analyst expectations. It also raised its 2026 adjusted EPS outlook to at least $14.65 and EBITDA outlook to at least $1.615 billion. Gartner Q3 Earnings Beat Estimates, Revenues Move Up 2% Y/Y
• Negative Sentiment: Investors appeared disappointed with the near-term outlook: Gartner’s implied fourth-quarter earnings forecast fell short of Wall Street expectations. A key growth measure rose only 2.5%, and management said reaching a 4% growth pace by year-end was unlikely, tempering the positive impact of the annual guidance increase. Gartner Stock Sinks Despite Raised Outlook as Fourth-Quarter Forecast Disappoints
• Negative Sentiment: Truist Financial downgraded Gartner from Buy to Hold and cut its price target from $235 to $210, signaling less confidence in further share-price gains. This Gartner Analyst Is No Longer Bullish

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.