Gartner (NYSE:IT) Issues Earnings Results, Beats Estimates By $0.44 EPS

Gartner (NYSE:IT) released its quarterly earnings results on Tuesday. The information technology services provider reported $3.94 earnings per share for the quarter, beating the consensus estimate of $3.50 by $0.44, FiscalAI reports. The business had revenue of $1.75 billion during the quarter, compared to analysts’ expectations of $1.75 billion. Gartner had a return on equity of 92.12% and a net margin of 13.71%.The firm’s revenue for the quarter was up 2.2% compared to the same quarter last year. During the same quarter last year, the business posted $5.45 EPS. Gartner updated its FY 2026 guidance to 12.300- EPS.

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

• Q4 and full-year 2025 results came in ahead of expectations — Q4 revenue $1.8 billion (+2% YoY), Q4 EBITDA $436 million (+5%), full-year revenue $6.5 billion (+4%), full-year adjusted EPS $13.17, and free cash flow $1.2 billion; Gartner also repurchased more than $2 billion of stock in 2025.
• Management is executing a broad transformation of Business & Technology Insights across four dimensions — impact, volume, timeliness, and user experience — with major AI investments (about 6,000 AI documents, >200,000 AI client conversations) and the full rollout of Ask Gartner, early users of which show materially higher renewal rates.
• 2026 guidance is cautious but constructive: consolidated revenue ≥ $6.45 billion (FX-neutral +2%), EBITDA ≥ $1.515 billion (≥23.5% margin), adjusted EPS ≥ $12.30, and free cash flow ≥ $1.135 billion, with management expecting contract-value growth to accelerate through 2026 and excluding the Digital Markets business from the outlook.
• Persistent external headwinds remain — U.S. federal (DOGE) disruptions, tariff-impacted industries, tighter budgets and extended buying cycles drove only 1% CV growth in Q4 and materially depressed federal renewals, pressuring seat counts and near-term selling dynamics.

Gartner Trading Down 23.4%

Shares of IT traded down $47.28 during trading hours on Tuesday, reaching $155.12. 2,497,169 shares of the company traded hands, compared to its average volume of 1,108,910. The firm has a market cap of $11.18 billion, a price-to-earnings ratio of 13.52 and a beta of 1.06. Gartner has a 12-month low of $139.18 and a 12-month high of $584.01. The stock’s fifty day moving average price is $237.22 and its 200 day moving average price is $250.35. The company has a current ratio of 0.88, a quick ratio of 0.88 and a debt-to-equity ratio of 4.42.

More Gartner News

Here are the key news stories impacting Gartner this week:

• Positive Sentiment: Q4 EPS beat Street estimates — Gartner reported $3.94 EPS, topping consensus and showing profitability resilience even as year‑over‑year EPS declined; this beat can support near‑term sentiment. Gartner (IT) Beats Q4 Earnings and Revenue Estimates
• Positive Sentiment: Company expanded share repurchases alongside its report — buyback increases can support the stock by returning cash and offsetting EPS pressure from slower growth. Gartner Reports Mixed 2025 Results, Expands Share Repurchases
• Neutral Sentiment: Revenue essentially inline — Q4 revenue was about $1.75B (up ~2.2% Y/Y) and matched consensus, which moderates the positive EPS headline but underscores slow top‑line growth. Gartner Q4 earnings and materials
• Negative Sentiment: FY2026 guidance below Street expectations — Gartner set FY26 EPS and revenue guidance under analysts’ forecasts, signaling weaker forward visibility and growth; this is the main driver weighing on the stock. Gartner forecasts downbeat annual results on slowing demand at consulting unit
• Negative Sentiment: Slowing demand in consulting unit — management cited reduced enterprise spending that hit advisory/consulting demand, raising concerns about sustained growth and margin pressure. Gartner forecasts downbeat annual results on slowing demand at consulting unit

Insider Buying and Selling at Gartner

In other news, Director Stephen G. Pagliuca purchased 43,300 shares of the stock in a transaction that occurred on Wednesday, December 10th. The stock was purchased at an average price of $229.57 per share, for a total transaction of $9,940,381.00. Following the completion of the acquisition, the director owned 111,613 shares of the company’s stock, valued at approximately $25,622,996.41. This trade represents a 63.38% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, SVP John J. Rinello sold 220 shares of the firm’s stock in a transaction on Wednesday, December 3rd. The stock was sold at an average price of $229.57, for a total value of $50,505.40. Following the transaction, the senior vice president owned 3,046 shares in the company, valued at $699,270.22. The trade was a 6.74% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 3.60% of the stock is owned by corporate insiders.

Institutional Trading of Gartner

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Brighton Jones LLC acquired a new position in shares of Gartner during the fourth quarter worth $309,000. Sivia Capital Partners LLC purchased a new stake in Gartner in the second quarter valued at about $336,000. Cresset Asset Management LLC boosted its holdings 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 worth $585,000 after acquiring an additional 191 shares in the last quarter. Sei Investments Co. grew its stake in shares of Gartner by 9.2% during the second quarter. Sei Investments Co. now owns 91,205 shares of the information technology services provider’s stock worth $36,867,000 after acquiring an additional 7,678 shares during the last quarter. Finally, The Manufacturers Life Insurance Company increased its holdings 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 valued at $38,523,000 after acquiring an additional 50,251 shares in the last quarter. Institutional investors own 91.51% of the company’s stock.

Analyst Upgrades and Downgrades

A number of equities analysts have commented on the stock. UBS Group lifted their price objective on shares of Gartner from $256.00 to $270.00 and gave the stock a “neutral” rating in a research note on Friday, January 9th. Barclays dropped their price target on Gartner from $270.00 to $260.00 and set an “equal weight” rating for the company in a research report on Wednesday, November 5th. Weiss Ratings reaffirmed a “sell (d+)” rating on shares of Gartner in a research note on Thursday, January 22nd. The Goldman Sachs Group cut their target price on Gartner from $457.00 to $390.00 and set a “buy” rating on the stock in a research report on Wednesday, November 5th. Finally, BMO Capital Markets dropped their price objective on shares of Gartner from $272.00 to $254.00 and set a “market perform” rating for the company in a research note on Wednesday, November 5th. Four investment analysts have rated the stock with a Buy rating, six have assigned a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of “Hold” and an average price target of $309.67.

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.