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

Key Points

• Gartner beat quarterly expectations: Adjusted EPS reached $4.37, topping estimates by $0.61, while revenue of approximately $1.68 billion exceeded forecasts but declined 0.6% year over year.
• Full-year 2026 guidance was raised to at least $1.57 billion in EBITDA, $14 in adjusted EPS and $1.185 billion in free cash flow, supported by expense discipline and improving contract value growth.
• Uncertainty remains a risk: Tight client budgets and delayed decisions are pressuring large-enterprise demand, while Consulting revenue fell to $142 million from $156 million a year earlier; analysts maintain a consensus “Hold” rating.

Gartner (NYSE:IT - Get Free Report) announced its quarterly earnings data on Tuesday. The information technology services provider reported $4.37 EPS for the quarter, topping analysts' consensus estimates of $3.76 by $0.61, FiscalAI reports. Gartner had a return on equity of 161.39% and a net margin of 11.44%.The firm had revenue of $1.68 billion for the quarter, compared to the consensus estimate of $1.65 billion. During the same quarter last year, the business posted $3.53 earnings per share. The firm's revenue was down .6% compared to the same quarter last year. 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 Stock Performance

IT opened at $151.33 on Tuesday. The company has a debt-to-equity ratio of 46.98, a current ratio of 0.94 and a quick ratio of 0.94. The business's 50-day moving average price is $144.44 and its two-hundred day moving average price is $158.78. Gartner has a 1 year low of $124.25 and a 1 year high of $337.29. The company has a market capitalization of $10.13 billion, a price-to-earnings ratio of 14.95, a P/E/G ratio of 0.83 and a beta of 0.97.

Institutional Investors Weigh In On Gartner

Hedge funds have recently added to or reduced their stakes in the business. State Street Corp grew its stake in shares of Gartner by 2.8% during the 3rd quarter. State Street Corp now owns 3,510,206 shares of the information technology services provider's stock valued at $922,728,000 after purchasing an additional 96,809 shares during the period. Morgan Stanley raised its stake in Gartner by 5.8% in the fourth quarter. Morgan Stanley now owns 2,495,575 shares of the information technology services provider's stock valued at $629,585,000 after buying an additional 136,233 shares during the last quarter. AQR Capital Management LLC lifted its holdings in shares of Gartner by 51.9% in the 4th quarter. AQR Capital Management LLC now owns 1,892,004 shares of the information technology services provider's stock valued at $477,315,000 after buying an additional 646,052 shares during the period. Sustainable Growth Advisers LP increased its stake in Gartner by 26.3% during the 3rd quarter. Sustainable Growth Advisers LP now owns 1,466,771 shares of the information technology services provider's stock worth $385,570,000 after buying an additional 305,258 shares in the last quarter. Finally, Invesco Ltd. grew its stake in shares of Gartner by 1.9% in the 4th quarter. Invesco Ltd. now owns 1,388,317 shares of the information technology services provider's stock valued at $350,245,000 after buying an additional 25,526 shares during the period. 91.51% of the stock is currently owned by institutional investors.

Analyst Ratings Changes

IT has been the subject of several recent analyst reports. Royal Bank Of Canada decreased their price objective on shares of Gartner from $175.00 to $160.00 and set a "sector perform" rating for the company in a research report on Wednesday, May 6th. Wells Fargo & Company reduced their target price on Gartner from $140.00 to $120.00 and set an "underweight" rating for the company in a report on Wednesday, June 24th. UBS Group dropped their price target on Gartner from $170.00 to $164.00 and set a "neutral" rating for the company in a research report on Friday, June 12th. Weiss Ratings lowered shares of Gartner from a "sell (d+)" rating to a "sell (d)" rating in a report on Friday. Finally, The Goldman Sachs Group set a $162.00 price target on Gartner in a report on Tuesday, May 5th. 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 stock. According to MarketBeat.com, the stock currently has an average rating of "Hold" and an average price target of $173.10.

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.