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

Gartner (NYSE:IT) posted its quarterly earnings data on Tuesday. The information technology services provider reported $3.94 earnings per share for the quarter, topping analysts’ consensus estimates of $3.50 by $0.44, FiscalAI reports. Gartner had a net margin of 11.22% and a return on equity of 83.48%. The company had revenue of $1.75 billion during the quarter, compared to analysts’ expectations of $1.75 billion. During the same period in the prior year, the business posted $5.45 earnings per share. The firm’s revenue for the quarter was up 2.2% on a year-over-year basis. 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 Stock Performance

Shares of IT stock traded down $4.65 during trading on Thursday, reaching $153.18. The company had a trading volume of 581,690 shares, compared to its average volume of 1,403,366. The firm’s 50 day simple moving average is $234.23 and its two-hundred day simple moving average is $248.33. Gartner has a one year low of $139.18 and a one year high of $544.93. The company has a market capitalization of $11.04 billion, a PE ratio of 15.84 and a beta of 1.06. The company has a debt-to-equity ratio of 4.42, a current ratio of 0.88 and a quick ratio of 0.88.

Insider Buying and Selling at Gartner

In other Gartner news, EVP Claire Herkes sold 367 shares of the stock in a transaction on Wednesday, December 3rd. The stock was sold at an average price of $231.56, for a total value of $84,982.52. Following the transaction, the executive vice president directly owned 4,074 shares in the company, valued at approximately $943,375.44. This trade represents a 8.26% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. 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 completion of the transaction, the senior vice president owned 3,046 shares in the company, valued at $699,270.22. This represents a 6.74% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders own 2.30% of the company’s stock.

Institutional Trading of Gartner

Hedge funds have recently modified their holdings of the stock. Brighton Jones LLC acquired a new stake in Gartner during the 4th quarter worth about $309,000. Sivia Capital Partners LLC purchased a new position in Gartner in the second quarter valued at approximately $336,000. Cresset Asset Management LLC increased its stake in shares of 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 purchasing an additional 191 shares in the last quarter. Sei Investments Co. grew its holdings in Gartner by 9.2% during the 2nd quarter. Sei Investments Co. now owns 91,205 shares of the information technology services provider’s stock valued at $36,867,000 after buying an additional 7,678 shares in the last quarter. Finally, The Manufacturers Life Insurance Company raised its holdings in shares of Gartner by 111.5% in the 2nd 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 and hedge funds own 91.51% of the company’s stock.

Gartner News Roundup

Here are the key news stories impacting Gartner this week:

• Positive Sentiment: Gartner’s market outlook implies a large long‑term opportunity — the firm forecasts global IT spending will top $6 trillion in 2026 and sees ~10.8% growth for IT spending next year, supporting secular demand for Gartner’s subscription research and advisory services. Gartner: IT spending will exceed $6 trillion in 2026
• Positive Sentiment: Q4 results beat EPS estimates (reported $3.94 vs. $3.50 est.) and revenue was roughly in line; Insights and Conferences showed pockets of strength, reinforcing the resilience of Gartner’s subscription-heavy model and renewal economics. Gartner Earnings Outpace Estimates in Q4
• Neutral Sentiment: Analyst commentary and earnings‑trend reports show some improvement in forward EPS modeling for the sector, but these take time to translate into a sustained sentiment shift for IT names like Gartner. Earnings Outlook Improves: A Closer Look
• Negative Sentiment: Management tone on the earnings call flagged near‑term weakness — clients are “slowing and deferring everything possible” while they assess shifting AI priorities — which drove immediate investor concern about contract growth and timing of renewals. Why Gartner and other IT stocks got slammed on Tuesday
• Negative Sentiment: Several brokerages cut targets/ratings after the print: Morgan Stanley trimmed its target to $200 and kept an Equal‑Weight, while Wells Fargo cut to $150 and moved to Underweight — downward revisions that reinforce selling pressure. Morgan Stanley price target cut Wells Fargo price target cut
• Negative Sentiment: Market writeups argue the post‑earnings selloff reflects persistent negative sentiment — slowing contract growth, underwhelming guidance and AI‑related uncertainty are likely to keep pressure on any near‑term recovery. Gartner Q4: The Negative Sentiment Will Keep Downward Pressure On Recovery

Wall Street Analyst Weigh In

Several equities analysts recently commented on IT shares. Truist Financial set a $300.00 target price on Gartner in a report on Wednesday, November 26th. Wells Fargo & Company cut their price objective on Gartner from $218.00 to $150.00 and set an “underweight” rating for the company in a research report on Wednesday. William Blair reaffirmed an “outperform” rating on shares of Gartner in a research note on Tuesday, October 21st. Royal Bank Of Canada set a $175.00 target price on shares of Gartner in a report on Wednesday. Finally, Barclays cut their price objective on shares of Gartner from $260.00 to $180.00 and set an “equal weight” rating on the stock in a report on Thursday. Four research analysts have rated the stock with a Buy rating, six have given a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus target price of $203.70.

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.