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

Gartner (NYSE:IT) posted its quarterly earnings results on Tuesday. The information technology services provider reported $4.37 earnings per share 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 the consensus estimate of $1.65 billion. Gartner had a net margin of 11.44% and a return on equity of 161.39%. The firm’s revenue for the quarter was down .6% on a year-over-year basis. During the same period in the previous 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 Price Performance

IT traded up $0.45 during trading on Wednesday, hitting $186.24. The company’s stock had a trading volume of 946,543 shares, compared to its average volume of 1,577,108. The business’s fifty day simple moving average is $144.99 and its 200 day simple moving average is $158.40. Gartner has a twelve month low of $124.25 and a twelve month high of $265.85. The firm has a market capitalization of $12.47 billion, a price-to-earnings ratio of 18.40, a P/E/G ratio of 0.84 and a beta of 0.94. The company has a current ratio of 0.94, a quick ratio of 0.94 and a debt-to-equity ratio of 46.98.

Institutional Trading of Gartner

Several institutional investors have recently made changes to their positions in the company. Cresset Asset Management LLC lifted its stake in Gartner by 3.3% during the 3rd quarter. Cresset Asset Management LLC now owns 1,493 shares of the information technology services provider’s stock worth $392,000 after acquiring an additional 47 shares in the last quarter. Brown Brothers Harriman & Co. raised its stake in Gartner by 5.8% during the 3rd quarter. Brown Brothers Harriman & Co. now owns 1,019 shares of the information technology services provider’s stock worth $268,000 after acquiring an additional 56 shares in the last quarter. Parallel Advisors LLC increased its position in Gartner by 10.7% during the third quarter. Parallel Advisors LLC now owns 724 shares of the information technology services provider’s stock worth $190,000 after buying an additional 70 shares during the period. Fiduciary Trust Co raised its holdings in shares of Gartner by 2.7% in the third quarter. Fiduciary Trust Co now owns 3,493 shares of the information technology services provider’s stock valued at $918,000 after buying an additional 92 shares during the last quarter. Finally, Florida Financial Advisors LLC grew its position in Gartner by 19.4% in the 2nd quarter. Florida Financial Advisors LLC now owns 573 shares of the information technology services provider’s stock valued at $232,000 after buying an additional 93 shares during the last quarter. Hedge funds and other institutional investors own 91.51% of the company’s stock.

Wall Street Analyst Weigh In

Several research firms have recently issued reports on IT. UBS Group reduced their target price on Gartner from $170.00 to $164.00 and set a “neutral” rating on the stock in a research note on Friday, June 12th. Barclays reduced their price objective on Gartner from $180.00 to $150.00 and set an “equal weight” rating for the company in a report on Friday, April 10th. The Goldman Sachs Group set a $162.00 target price on shares of Gartner in a report on Tuesday, May 5th. Truist Financial set a $205.00 price target on Gartner in a report on Wednesday. Finally, Royal Bank Of Canada restated a “sector perform” rating and set a $164.00 price target on shares of Gartner in a report on Wednesday. Two investment analysts have rated the stock with a Buy rating, seven have issued a Hold rating and two have issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Hold” and an average price target of $180.40.

Gartner News Summary

Here are the key news stories impacting Gartner this week:

• Positive Sentiment: Gartner reported adjusted EPS of $4.37, well above the roughly $3.76–$3.77 analyst consensus, while revenue of approximately $1.68 billion also exceeded expectations. Net income rose to $275.5 million from $240.8 million a year earlier. Gartner beats quarterly estimates on strong conference demand
• Positive Sentiment: Management raised its 2026 outlook, signaling adjusted EPS of at least $14 versus prior expectations near $13.69, and increased adjusted EBITDA and free-cash-flow guidance. Margin expansion and stronger cash generation helped offset softer reported revenue. Gartner Q2 Earnings Beat Estimates, 2026 EPS Outlook Raised
• Positive Sentiment: Shareholder returns provided another catalyst: Gartner repurchased 3.6 million shares for $547 million during the quarter, and the board added $500 million to its buyback authorization. Contract value increased 1.7% year over year, with management citing improving demand for AI-related research and advisory services. Gartner Stock Surges After Q2 Beat, Higher Outlook, and Fresh Buyback Boost
• Neutral Sentiment: Gartner announced its inaugural Enterprise Risk, Audit & Compliance Conference in London for September 28–29, highlighting ongoing conference activity and demand for its research platform, but the event is unlikely to materially affect near-term financial results. Gartner Announces Enterprise Risk, Audit & Compliance Conference
• Negative Sentiment: Reported revenue declined 0.6% year over year, and some commentary characterized the quarter as improved but not compelling enough because growth remains modest. A shareholder-rights law firm also announced an investigation into potential fiduciary-duty breaches; no wrongdoing has been established, but the announcement creates a potential overhang. Gartner Shareholder Investigation Alert

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.