Gartner (NYSE:IT) Issues Quarterly Earnings Results

Key Points

• Gartner beat Q1 expectations with $3.32 adjusted EPS (vs. ~$2.92), EBITDA of $395M and free cash flow of $371M, and management raised FY‑2026 guidance to at least $13.25 adjusted EPS and $6.405B revenue (FX‑neutral +1%).
• Capital returns remain a focus: the company repurchased $535M in Q1 (share count down ~10% Y/Y) and the board boosted buyback authorization to about $1.2B, with ongoing buybacks and tuck‑in M&A planned to enhance EPS.
• Offsetting risks include a slight Q1 revenue miss of $1.49B (down ~1.5% Y/Y) with modest contract‑value growth and a U.S. federal headwind, while multiple class‑action lawsuits alleging disclosure issues increase legal uncertainty and have prompted analyst target cuts.

Gartner (NYSE:IT - Get Free Report) posted its quarterly earnings data on Tuesday. The information technology services provider reported $3.32 EPS for the quarter, topping analysts' consensus estimates of $2.92 by $0.40, FiscalAI reports. Gartner had a return on equity of 102.20% and a net margin of 11.22%.The company had revenue of $1.49 billion for the quarter, compared to the consensus estimate of $1.51 billion. During the same quarter in the previous year, the business earned $2.98 EPS. The company's quarterly revenue was down 1.5% compared to the same quarter last year. Gartner updated its FY 2026 guidance to 13.250- EPS.

Here are the key takeaways from Gartner's conference call:

• Gartner beat Q1 expectations with $1.5B revenue (+2% reported), EBITDA $395M (+6%), adjusted EPS of $3.32 (+11%), and free cash flow of $371M (+29%).
• Management raised full‑year guidance — revenue target at or above $6.405B (FX‑neutral +1%), EBITDA ≥ $1.545B (≥24.1% margin), adjusted EPS ≥ $13.25, and free cash flow ≥ $1.16B.
• Contract value (CV) growth accelerated modestly to 1% Y/Y (3.5% ex‑U.S. federal), but U.S. federal remains a near‑term headwind (~$114M CV) and March geopolitical disruption slowed decision timing before many deals closed in April.
• Capital return and balance sheet actions continue — $535M repurchased in Q1, share count down ~10% Y/Y, board boosted buyback authorization to ~$1.2B, and management plans ongoing buybacks plus tuck‑in M&A to enhance EPS.
• Product and engagement initiatives are gaining traction — high‑impact documents +22%, library +19%, AskGartner improvements and multi‑language support drove digital engagement +160 bps and overall engagement +170 bps, which management expects will lift retention and future CV growth.

Gartner Price Performance

Shares of NYSE IT traded up $0.43 during mid-day trading on Tuesday, reaching $148.14. The company had a trading volume of 1,272,455 shares, compared to its average volume of 1,541,576. The company has a current ratio of 1.00, a quick ratio of 1.00 and a debt-to-equity ratio of 9.30. The stock has a market cap of $10.44 billion, a PE ratio of 15.35, a P/E/G ratio of 0.89 and a beta of 0.91. The company has a 50-day moving average price of $155.98 and a two-hundred day moving average price of $201.48. Gartner has a 1-year low of $139.18 and a 1-year high of $451.73.

Key Stories Impacting Gartner

Here are the key news stories impacting Gartner this week:

• Positive Sentiment: Gartner beat Q1 EPS estimates — reported $3.32 EPS vs. consensus around ~$2.92 and showed year‑over‑year EPS growth; management hosted a conference call and provided slide materials. Gartner Reports First Quarter 2026 Financial Results
• Positive Sentiment: Gartner raised FY‑2026 EPS guidance to about 13.25 (versus Street ~13.19), signaling management confidence in profitability despite a slight top‑line softness. Gartner Reports First Quarter 2026 Financial Results
• Neutral Sentiment: Revenue narrowly missed expectations: Q1 revenue $1.49B vs. consensus ~$1.51B and was down ~1.5% year‑over‑year, a reminder growth remains uneven across segments. MarketBeat Q1 Coverage
• Neutral Sentiment: Analysts and media are parsing key metrics (margin strength, segment trends, and conference bookings) to judge sustainability of profit gains — see Zacks' metric breakdown. Zacks: Key Metrics for Gartner Q1
• Negative Sentiment: Multiple class‑action lawsuits and investor notices were filed or announced by several law firms alleging securities law violations tied to the Feb 4, 2025–Feb 2, 2026 period; that increases legal risk, potential costs, and investor uncertainty. Bronstein, Gewirtz & Grossman Class Action Notice
• Negative Sentiment: Other firms (Levi & Korsinsky, Bernstein Liebhard, Portnoy, Rosen, DJS, Schall, etc.) issued filings/alerts; one complaint highlights alleged misstatements about consulting outlook and contract values — watch for consolidation of cases or a lead plaintiff appointment by May 18, 2026. Levi & Korsinsky Investor Alert

Wall Street Analysts Forecast Growth

IT has been the topic of a number of research reports. Morgan Stanley dropped their price objective on Gartner from $275.00 to $200.00 and set an "equal weight" rating on the stock in a research note on Wednesday, February 4th. Robert W. Baird set a $240.00 price objective on Gartner in a research note on Wednesday, February 4th. BMO Capital Markets reissued a "market perform" rating on shares of Gartner in a research note on Thursday, February 5th. Deutsche Bank Aktiengesellschaft set a $204.00 price objective on Gartner in a research note on Wednesday, February 4th. Finally, UBS Group dropped their price objective on Gartner from $180.00 to $166.00 and set a "neutral" rating on the stock in a research note on Thursday, March 26th. Two equities research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat, Gartner has a consensus rating of "Hold" and an average target price of $180.40.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the company. DV Equities LLC bought a new stake in shares of Gartner during the 4th quarter worth about $25,000. Global Retirement Partners LLC boosted its stake in shares of Gartner by 127.8% during the 4th quarter. Global Retirement Partners LLC now owns 180 shares of the information technology services provider's stock worth $45,000 after acquiring an additional 101 shares in the last quarter. Osterweis Capital Management Inc. bought a new stake in shares of Gartner during the 2nd quarter worth about $48,000. Parkside Financial Bank & Trust boosted its stake in shares of Gartner by 72.7% during the 4th quarter. Parkside Financial Bank & Trust now owns 221 shares of the information technology services provider's stock worth $56,000 after acquiring an additional 93 shares in the last quarter. Finally, MUFG Securities EMEA plc bought a new stake in shares of Gartner during the 2nd quarter worth about $91,000. Hedge funds and other institutional investors own 91.51% of the company's stock.

Gartner Company Profile

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.