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

Gartner (NYSE:IT) released its quarterly earnings results on Tuesday. The information technology services provider reported $4.37 EPS for the quarter, topping the consensus estimate of $3.76 by $0.61, FiscalAI reports. The business had revenue of $1.68 billion during the quarter, compared to analyst estimates of $1.65 billion. Gartner had a net margin of 11.99% and a return on equity of 323.93%. The company’s quarterly revenue was down .6% on a year-over-year basis. During the same quarter in the prior year, the firm earned $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 Price Performance

Shares of Gartner stock traded down $4.21 during trading on Thursday, hitting $182.19. The stock had a trading volume of 141,539 shares, compared to its average volume of 1,577,446. The business has a fifty day moving average of $145.52 and a two-hundred day moving average of $158.09. Gartner has a fifty-two week low of $124.25 and a fifty-two week high of $265.85. The firm has a market cap of $12.20 billion, a P/E ratio of 16.26, a PEG ratio of 1.00 and a beta of 0.94. The company has a debt-to-equity ratio of 46.98, a current ratio of 0.94 and a quick ratio of 0.94.

Gartner News Roundup

Here are the key news stories impacting Gartner this week:

• Positive Sentiment: Quarterly earnings beat estimates: Gartner reported adjusted EPS of $4.37 versus the $3.76 consensus, while revenue of $1.68 billion exceeded expectations of $1.65 billion. Adjusted EBITDA, free cash flow and margins also improved, with strong conference demand supporting results. Gartner beats quarterly estimates on strong conference demand
• Positive Sentiment: Higher guidance and improving demand: Management raised or reinforced its 2026 outlook, signaling adjusted EPS of at least $14 and stronger free-cash-flow and EBITDA expectations. Total contract value reached approximately $5.3 billion, up 1.7% year over year, with management indicating that contract-value growth is accelerating. Gartner Q2 Earnings Beat Estimates, 2026 EPS Outlook Raised
• Positive Sentiment: Large share repurchases: Gartner repurchased about 3.6 million shares for $547 million during the quarter, and authorized an additional $500 million for buybacks. This could support per-share earnings and signals management’s confidence in the company’s valuation and cash generation. Gartner Stock Surges After Q2 Beat, Higher Outlook, and Fresh Buyback Boost
• Positive Sentiment: UBS raised its price target: UBS lifted its target for Gartner from $164 to $196, maintaining a neutral rating. The higher target reflects improved expectations after the earnings beat, though it still suggests only moderate upside from the referenced trading level. Gartner Price Target Raised to $196 at UBS
• Neutral Sentiment: Gartner’s AI and cloud research remains prominent: Recent Gartner research emphasizes the shift from AI experimentation to AI engineering and the growing role of AI agents in cloud-native platforms. These announcements reinforce Gartner’s industry influence but do not directly change near-term financial results. Gartner Marks Enterprise Move from AI Experiments to AI Engineering
• Negative Sentiment: Revenue growth remains limited: Quarterly revenue declined about 0.6% year over year, making the earnings beat and margin expansion especially important. Investors may remain concerned about the pace of underlying growth and the timing of broader contract-value reacceleration.
• Negative Sentiment: Analyst caution and legal scrutiny: Goldman Sachs raised its target to $181 while Wells Fargo raised its target to $150; both retained neutral or underweight views. Separately, a law firm announced an investigation into potential fiduciary-duty breaches by Gartner directors and officers, adding a headline risk, although no wrongdoing has been established. Gartner Shareholder Investigation Alert

Hedge Funds Weigh In On Gartner

Several hedge funds have recently made changes to their positions in the business. Brighton Jones LLC purchased a new stake in shares of Gartner in the fourth quarter valued at $309,000. Sivia Capital Partners LLC purchased a new stake in Gartner in the 2nd quarter worth about $336,000. Aptus Capital Advisors LLC lifted its stake in Gartner by 16.0% in the 4th quarter. Aptus Capital Advisors LLC now owns 1,066 shares of the information technology services provider’s stock worth $269,000 after acquiring an additional 147 shares in the last quarter. PCM Encore LLC acquired a new stake in Gartner during the 4th quarter worth about $211,000. Finally, StoneX Group Inc. purchased a new position in Gartner during the 4th quarter valued at about $212,000. Institutional investors and hedge funds own 91.51% of the company’s stock.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently weighed in on the company. UBS Group lifted their price target on Gartner from $164.00 to $196.00 and gave the company a “neutral” rating in a report on Wednesday. Truist Financial set a $205.00 target price on Gartner in a research note on Wednesday. Barclays reduced their price target on Gartner from $180.00 to $150.00 and set an “equal weight” rating for the company in a research report on Friday, April 10th. Morgan Stanley set a $177.00 price target on Gartner in a report on Wednesday. Finally, The Goldman Sachs Group lifted their price objective on shares of Gartner from $162.00 to $181.00 and gave the company a “neutral” rating in a research note on Wednesday. Two equities research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat, Gartner presently has a consensus rating of “Hold” and an average price target of $185.50.

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.