Gartner (NYSE:IT) Trading Up 14.3% on Better-Than-Expected Earnings

Key Points

• Gartner shares surged 14.3% after the company reported adjusted quarterly EPS of $4.37, beating the $3.76 consensus, while revenue of $1.68 billion also exceeded expectations.
• The company set fiscal 2026 EPS guidance at at least $14.00, above the $13.69 analyst consensus, and repurchased $547 million of stock while expanding its buyback authorization by $500 million.
• Despite the earnings beat, revenue declined 0.6% year over year and analysts maintain a consensus “Hold” rating, with an average price target of $173.10—roughly in line with the stock’s post-earnings trading level.

Shares of Gartner, Inc. (NYSE:IT - Get Free Report) shot up 14.3% during mid-day trading on Tuesday following a better than expected earnings announcement. The company traded as high as $173.74 and last traded at $173.2290. 271,594 shares traded hands during trading, a decline of 83% from the average daily volume of 1,557,725 shares. The stock had previously closed at $151.53.

The information technology services provider reported $4.37 EPS for the quarter, topping analysts' consensus estimates of $3.76 by $0.61. The firm had revenue of $1.68 billion for the quarter, compared to the consensus estimate of $1.65 billion. Gartner had a return on equity of 161.39% and a net margin of 11.44%.The company's revenue was down .6% compared to the same quarter last year. During the same quarter in the prior year, the business earned $3.53 earnings per share. Gartner has set its FY 2026 guidance at 14.000- EPS.

Key Gartner News

Here are the key news stories impacting Gartner this week:

• Positive Sentiment: Gartner reported second-quarter adjusted EPS of $4.37, well above the consensus estimate of $3.76–$3.77 and up from $3.53 a year earlier. Revenue of approximately $1.68 billion also exceeded the $1.65 billion analyst estimate. Gartner Q2 Earnings and Revenues Beat Estimates
• Positive Sentiment: The company raised or reaffirmed fiscal 2026 EPS guidance at at least $14.00, above the $13.69 consensus forecast. The stronger outlook improves earnings visibility and is a key catalyst for investors.
• Positive Sentiment: Gartner repurchased 3.6 million shares for $547 million during the quarter, while its board added $500 million to the remaining buyback authorization. Reduced share count and increased capital returns could support per-share earnings and valuation. Gartner Highlights Strong Q2 Earnings and Buyback Expansion
• Neutral Sentiment: Contract value increased 1.7% year over year and 0.3% sequentially on an FX-neutral basis, indicating steady demand but relatively limited acceleration.
• Negative Sentiment: Quarterly revenue declined 0.6% year over year to $1.676 billion. While the figure beat expectations, the decline highlights ongoing growth challenges and may limit upside if demand does not improve.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently commented on the stock. The Goldman Sachs Group set a $162.00 price objective on shares of Gartner in a research note on Tuesday, May 5th. Barclays decreased their target price on shares of Gartner from $180.00 to $150.00 and set an "equal weight" rating for the company in a research note on Friday, April 10th. Weiss Ratings downgraded shares of Gartner from a "sell (d+)" rating to a "sell (d)" rating in a report on Friday. Wells Fargo & Company dropped their price target on shares of Gartner from $140.00 to $120.00 and set an "underweight" rating on the stock in a research report on Wednesday, June 24th. Finally, Morgan Stanley decreased their price objective on shares of Gartner from $183.00 to $173.00 and set an "equal weight" rating for the company in a research report on Friday, July 10th. Two equities research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat.com, the company has a consensus rating of "Hold" and an average price target of $173.10.

Institutional Investors Weigh In On Gartner

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Capital International Investors grew its position in shares of Gartner by 28.3% in the fourth quarter. Capital International Investors now owns 4,004,093 shares of the information technology services provider's stock valued at $1,010,153,000 after purchasing an additional 884,250 shares during the period. State Street Corp raised its position 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 worth $922,728,000 after purchasing an additional 96,809 shares during the last quarter. Independent Franchise Partners LLP lifted its stake in Gartner by 3.5% in the 4th quarter. Independent Franchise Partners LLP now owns 3,308,566 shares of the information technology services provider's stock valued at $834,685,000 after buying an additional 112,439 shares in the last quarter. Morgan Stanley lifted its stake in Gartner by 5.8% in the 4th 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 in the last quarter. Finally, AQR Capital Management LLC boosted its holdings in 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 worth $477,315,000 after buying an additional 646,052 shares during the last quarter. Hedge funds and other institutional investors own 91.51% of the company's stock.

Gartner Trading Up 14.0%

The company has a fifty day moving average of $144.44 and a 200-day moving average of $158.78. The company has a current ratio of 0.94, a quick ratio of 0.94 and a debt-to-equity ratio of 46.98. The company has a market capitalization of $11.57 billion, a price-to-earnings ratio of 17.07, a PEG ratio of 0.83 and a beta of 0.97.

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.

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