Gartner
IT
$141.31
+6.06%
Gartner, Inc. delivers actionable, objective business and technology insights through three segments: Business and Technology Insights, Conferences, and Consulting. As a leading provider of research and advisory services in the consulting industry, it distinguishes itself through its vast analyst network and subscription-based model that drives recurring revenue. The current investor narrative centers on the stock's severe decline of over 65% in the past year, raising debates about whether the sell-off reflects fundamental deterioration or an overreaction to cyclical headwinds in IT spending.…
IT
Gartner
$141.31
Related headlines
IT 12-Month Price Forecast
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Gartner's 12-month outlook, with a consensus price target around $183.70 and implied upside of +30.0% versus the current price.
Average Target
$183.70
7 analysts
Implied Upside
+30.0%
vs. current price
Analyst Count
7
covering this stock
Price Range
$113 - $184
Analyst target range
Seven analysts cover Gartner, with a consensus leaning neutral. Ratings include 2 Buys (Truist, Goldman Sachs), 4 Holds/Equal Weights (Barclays, Morgan Stanley, UBS, BMO Capital), and 1 Underweight (Wells Fargo). The average EPS estimate for the next fiscal year is $29.69, with a low of $29.14 and high of $30.18. Average revenue estimate is $7.59 billion. The implied upside from the current price of $133.24 to the average target is not directly provided, but based on the forward P/E of 8.7x and EPS estimate of $29.69, the implied price is ~$258, representing 94% upside. However, this seems optimistic given the recent downgrades. The target range is wide: low estimate of $29.14 EPS implies a price of ~$254 (using 8.7x), while high of $30.18 implies ~$263. The wide spread reflects high uncertainty. Recent rating actions show no upgrades or downgrades in the past six months, with most firms maintaining their stance. The lone Underweight from Wells Fargo highlights downside risk. The lack of strong bullish conviction suggests the stock may remain volatile.
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IT Technical Analysis
Gartner is in a sustained downtrend, with the stock price falling 65.6% over the past year. The current price of $133.24 sits at just 3.5% above its 52-week low of $124.25 and 65.5% below the 52-week high of $386.06, indicating extreme bearish sentiment and positioning near the bottom of its range. This suggests the stock is deeply oversold but also carries risk of further downside if fundamentals deteriorate. Short-term momentum remains negative, with a 1-month decline of 14.0% and a 3-month decline of 7.3%. The 1-month trend aligns with the longer-term downtrend, showing no signs of reversal. The relative strength versus the S&P 500 is deeply negative at -18.1% over 1 month and -86.3% over 1 year, confirming persistent underperformance. The 52-week low of $124.25 provides key support; a break below could trigger further selling toward the next psychological level. Resistance is at the 52-week high of $386.06, though nearer-term resistance lies around $160 (recent June highs). Beta of 0.96 indicates volatility roughly in line with the market, but the stock's high drawdown of 70.2% underscores severe risk.
Beta
0.96
0.96x market volatility
Max Drawdown
-70.2%
Largest decline past year
52-Week Range
$124-$376
Price range past year
Annual Return
-62.3%
Cumulative gain past year
| Period | IT Return | S&P 500 |
|---|---|---|
| 1m | -4.6% | +1.0% |
| 3m | -5.2% | +7.9% |
| 6m | -40.9% | +8.5% |
| 1y | -62.3% | +20.1% |
| ytd | -40.4% | +9.9% |
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IT Fundamental Analysis
Revenue in the most recent quarter (Q4 2025) was $1,753 million, up 2.2% year-over-year, but this growth rate has decelerated from 6.6% in Q4 2024 and 7.5% in Q3 2024. The consulting segment contributed $134 million and events $286 million, but the core Insights segment drives the majority of revenue. The deceleration suggests softening demand for IT research and advisory services, likely due to macro uncertainty. Net income in Q4 2025 was $242 million, with a net margin of 13.8%, down from 23.2% in Q4 2024. Gross margin improved to 64.6% from 66.5% a year ago, but operating margin compressed to 19.1% from 18.5% (though still healthy). The decline in net margin reflects higher costs and a lower tax benefit. The company remains profitable, but margin compression is a concern. The balance sheet shows a debt-to-equity ratio of 11.3x, which is elevated due to negative equity (book value is negative). Free cash flow TTM is $1,175 million, providing strong cash generation. However, the current ratio of 1.0 suggests tight liquidity. ROE is 227.9% due to negative equity, which is not meaningful. The high debt load (debt/equity 11.3x) increases financial risk, but robust FCF provides coverage.
Quarterly Revenue
$1.8B
2025-12
Revenue YoY Growth
+2.19%
YoY Comparison
Gross Margin
64.60%
Latest Quarter
Free Cash Flow
$1.2B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is IT Overvalued?
Since net income is positive, the primary valuation metric is the P/E ratio. The trailing P/E is 26.1x, while the forward P/E is 8.7x, implying a massive earnings growth expectation. The gap between trailing and forward P/E suggests the market expects a sharp earnings rebound, which is a high bar. Compared to the consulting services industry, Gartner's trailing P/E of 26.1x is above the industry average of 22x (estimated), representing a 19% premium. This premium may be justified by Gartner's strong brand and recurring revenue model, but the forward P/E of 8.7x suggests deep skepticism about near-term earnings. Historically, Gartner's trailing P/E has ranged from 19x to 44x over the past five years. The current 26.1x is near the lower end of that range, indicating the stock is cheap relative to its own history. However, the low forward P/E signals that the market is pricing in significant earnings risk.
PE
26.1x
Latest Quarter
vs. Historical
Low-End
5-Year PE Range 19x~139x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
16.3x
Enterprise Value Multiple
