Gartner (IT) AI Stock Analysis

• Market Cap: $19.48B
• Dividend Yield: N/A
• Average Volume (3M): 1.62M
• Price to Earnings (P/E): 15.8
• Beta (1Y): 1.01
• Revenue Growth: 5.89%
• EPS Growth: 54.53%
• Country: US
• Employees: 21,107
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 3.53
• Shares Outstanding: 75,735,794
• 10 Day Avg. Volume: 1,635,962
• 30 Day Avg. Volume: 1,620,206
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.64
• Enterprise Value/Revenue: 4.97
• Enterprise Value/Gross Profit: 7.32
• Enterprise Value/Ebitda: 18.41
• 1Y Price Target: $287.00
• Price Target Upside: 11.59% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 11

• Rating: 77 Outperform
• Price Target: $275.00 ▲(6.92% Upside)

Gartner's strong financial performance and strategic focus on AI initiatives are key strengths, supporting future growth prospects. However, high leverage and external challenges from U.S. federal policies and tariffs present risks that need to be managed.

Positive Factors

AI Initiatives

Gartner's focus on AI, including the launch of AskGartner and internal AI applications, positions it to capitalize on growing demand, enhancing its competitive edge and long-term growth prospects.

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting Gartner's long-term financial health and market position.

Cash Generation

Robust free cash flow generation enhances Gartner's ability to invest in growth initiatives, manage debt, and return value to shareholders, strengthening its financial stability.

Negative Factors

High Leverage

High leverage can constrain financial flexibility and increase risk, potentially impacting Gartner's ability to invest in growth and weather economic downturns.

Challenges with U.S. Federal Government

Challenges in the U.S. federal sector may hinder contract renewals and growth, affecting Gartner's revenue from a significant client segment and slowing overall growth.

Tariff Impacted Industries

Tariff-related challenges can lead to reduced spending by clients, impacting Gartner's contract value and revenue growth, posing a risk to its market position.

Gartner Business Overview & Revenue Model

Company Description

Gartner, Inc. is a leading research and advisory company specializing in providing insights, advice, and tools for IT, marketing, finance, and other business sectors. Founded in 1979, Gartner serves a wide range of clients, including executives and IT professionals, by delivering high-quality research, data analytics, and advisory services. The company operates primarily in the technology sector, offering a suite of products such as market research reports, strategic advisory services, and consulting to help organizations make informed decisions and drive business growth.

How the Company Makes Money

Gartner generates revenue through multiple streams, primarily from its subscription-based services, which provide clients with access to market research, analysis, and expert advice. The company offers various membership tiers, enabling clients to choose the level of access that meets their needs. Additionally, Gartner earns revenue from consulting services, where it provides tailored advice and strategic guidance to organizations facing specific challenges. The company also benefits from hosting conferences and events, which serve as platforms for networking and knowledge sharing among industry professionals. Partnerships with technology vendors and service providers further enhance Gartner's offerings, allowing it to deliver comprehensive insights and maintain a strong market position.

Gartner Financial Statement Overview

Summary

Gartner exhibits strong financial performance with consistent revenue growth and profitability. The company maintains strong returns on equity and cash flow generation, but high debt levels pose a risk that requires careful management.

Income Statement

Gartner shows strong revenue growth with a TTM increase of 1.44% and consistent gross profit margins around 68%. The net profit margin is healthy at approximately 19.7% TTM, indicating efficient cost management. However, the EBIT and EBITDA margins have slightly decreased in the TTM compared to the previous year, suggesting some pressure on operational efficiency.

Balance Sheet

The company has a high debt-to-equity ratio of 1.87 TTM, which has improved from previous years but still indicates significant leverage. Return on equity is robust at 92.8% TTM, reflecting strong profitability relative to shareholder equity. The equity ratio is relatively low, indicating a reliance on debt financing.

Cash Flow

Gartner's free cash flow has grown by 44.7% TTM, showing strong cash generation capabilities. The operating cash flow to net income ratio is 0.45, indicating good cash conversion. The free cash flow to net income ratio remains high at 93.1%, demonstrating effective cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.42B	6.27B	5.91B	5.48B	4.73B	4.10B
Gross Profit	4.36B	4.24B	4.00B	3.78B	3.29B	2.75B
EBITDA	1.73B	1.72B	1.47B	1.35B	1.30B	660.75M
Net Income	1.27B	1.25B	882.47M	807.80M	793.56M	266.75M
Balance Sheet
Total Assets	8.33B	8.53B	7.84B	7.30B	7.42B	7.32B
Cash, Cash Equivalents and Short-Term Investments	2.20B	1.93B	1.32B	698.00M	756.49M	712.58M
Total Debt	2.86B	2.90B	3.07B	3.16B	3.25B	2.84B
Total Liabilities	6.80B	7.18B	7.16B	7.07B	7.05B	6.23B
Stockholders Equity	1.53B	1.36B	680.63M	227.80M	371.06M	1.09B
Cash Flow
Free Cash Flow	1.51B	1.38B	1.05B	993.37M	1.25B	819.39M
Operating Cash Flow	1.62B	1.48B	1.16B	1.10B	1.31B	903.28M
Investing Cash Flow	-111.53M	-103.74M	54.16M	-117.56M	-80.47M	-83.89M
Financing Cash Flow	-576.60M	-710.14M	-588.88M	-1.03B	-1.16B	-416.22M

Gartner Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 257.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT, the sentiment is Negative. The current price of 257.2 is above the 20-day moving average (MA) of 253.58, below the 50-day MA of 260.73, and below the 200-day MA of 401.61, indicating a neutral trend. The MACD of -0.67 indicates Negative momentum. The RSI at 49.17 is Neutral, neither overbought nor oversold. The STOCH value of 54.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IT.

Gartner Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IT	77 Outperform	$19.48B	15.82	116.13%	―	5.89%	54.53%
INFY	77 Outperform	$67.72B	20.99	30.46%	3.13%	4.52%	-0.22%
ACN	74 Outperform	$152.80B	20.19	25.82%	2.41%	7.36%	6.18%
CTSH	74 Outperform	$33.04B	13.74	16.69%	1.82%	6.34%	12.16%
WIT	73 Outperform	$28.44B	19.73	16.50%	3.16%	-1.95%	35.65%
EPAM	68 Neutral	$8.58B	21.98	11.36%	―	9.73%	-0.29%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Gartner Corporate Events

Gartner Reports Strong Q2 Financial Results and Initiatives

On August 5, 2025, Gartner reported its second-quarter financial results, highlighting a revenue increase of 5.7% to $1.7 billion and a net income rise of 4.9% to $241 million. The company also announced an additional $700 million share repurchase authorization, supplementing the previous $5.3 billion authorization, and the rollout of AskGartner, an AI-powered tool to enhance client experience. These developments indicate Gartner’s strong financial performance and strategic initiatives to enhance shareholder value and client engagement.

The most recent analyst rating on (IT) stock is a Hold with a $505.00 price target. To see the full list of analyst forecasts on Gartner stock, see the IT Stock Forecast page.

Gartner’s 2025 Stockholders Meeting Decisions Announced

The 2025 Annual Meeting of Stockholders for Gartner, Inc. took place on May 29, 2025, where three proposals were voted on. The election of eleven nominees to the Board of Directors saw varying levels of support, with José M. Gutiérrez receiving the highest number of votes in favor. The compensation of the company’s named executive officers was approved on an advisory basis, and KPMG LLP was ratified as the independent registered public accounting firm for the 2025 fiscal year. These decisions are expected to influence Gartner’s governance and operational strategies moving forward.

The most recent analyst rating on (IT) stock is a Hold with a $505.00 price target. To see the full list of analyst forecasts on Gartner stock, see the IT Stock Forecast page.