William Blair Has Pessimistic Outlook of Gartner Q3 Earnings

Key Points

• William Blair has revised its Q3 2025 earnings per share (EPS) estimate for Gartner downwards from $2.71 to $2.33, reflecting a bearish outlook for the company.
• Multiple analysts have cut their price targets for Gartner, with notable decreases from Morgan Stanley to $322 and from Barclays to $320.
• Gartner's current stock price stands at $229.63, down 5.8% after the recent earnings report, showing the market's negative reaction to analysts' revised outlooks.

Gartner, Inc. (NYSE:IT - Free Report) - Equities researchers at William Blair reduced their Q3 2025 earnings per share (EPS) estimates for Gartner in a research note issued on Wednesday, August 6th. William Blair analyst A. Nicholas now anticipates that the information technology services provider will post earnings of $2.33 per share for the quarter, down from their prior estimate of $2.71. The consensus estimate for Gartner's current full-year earnings is $12.50 per share. William Blair also issued estimates for Gartner's Q1 2026 earnings at $3.00 EPS, Q2 2026 earnings at $3.65 EPS and Q3 2026 earnings at $2.66 EPS.

Gartner (NYSE:IT - Get Free Report) last released its earnings results on Tuesday, August 5th. The information technology services provider reported $3.53 earnings per share for the quarter, beating the consensus estimate of $3.38 by $0.15. Gartner had a return on equity of 82.63% and a net margin of 19.71%. The firm had revenue of $1.66 billion for the quarter, compared to analyst estimates of $1.68 billion. During the same quarter in the prior year, the firm posted $3.22 earnings per share. The company's quarterly revenue was up 5.7% on a year-over-year basis.

Other equities analysts have also issued research reports about the company. Morgan Stanley cut their target price on Gartner from $455.00 to $322.00 and set an "equal weight" rating on the stock in a research note on Wednesday. The Goldman Sachs Group cut their target price on Gartner from $535.00 to $457.00 and set a "buy" rating on the stock in a research note on Wednesday. Barclays cut their target price on Gartner from $475.00 to $320.00 and set an "overweight" rating on the stock in a research note on Wednesday. BMO Capital Markets cut their target price on Gartner from $409.00 to $272.00 and set a "market perform" rating on the stock in a research note on Wednesday. Finally, Wells Fargo & Company lowered their price target on Gartner from $345.00 to $225.00 and set an "underweight" rating for the company in a report on Wednesday. One investment analyst has rated the stock with a sell rating, five have given a hold rating and three have issued a buy rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of "Hold" and an average price target of $369.25.

Gartner Trading Down 0.3%

NYSE:IT traded down $0.69 during mid-day trading on Friday, hitting $229.00. The company had a trading volume of 2,105,581 shares, compared to its average volume of 1,350,028. Gartner has a fifty-two week low of $227.14 and a fifty-two week high of $584.01. The business's fifty day moving average is $375.39 and its two-hundred day moving average is $428.28. The company has a debt-to-equity ratio of 1.61, a quick ratio of 1.09 and a current ratio of 1.11. The firm has a market cap of $17.63 billion, a P/E ratio of 14.09 and a beta of 1.19.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the company. Sompo Asset Management Co. Ltd. grew its stake in Gartner by 1.7% in the fourth quarter. Sompo Asset Management Co. Ltd. now owns 1,210 shares of the information technology services provider's stock valued at $586,000 after purchasing an additional 20 shares in the last quarter. Cornerstone Advisory LLC grew its stake in Gartner by 0.8% in the fourth quarter. Cornerstone Advisory LLC now owns 2,803 shares of the information technology services provider's stock valued at $1,443,000 after purchasing an additional 21 shares in the last quarter. TD Waterhouse Canada Inc. grew its stake in Gartner by 3.1% in the fourth quarter. TD Waterhouse Canada Inc. now owns 758 shares of the information technology services provider's stock valued at $367,000 after purchasing an additional 23 shares in the last quarter. Connecticut Wealth Management LLC grew its stake in Gartner by 0.6% in the fourth quarter. Connecticut Wealth Management LLC now owns 4,604 shares of the information technology services provider's stock valued at $2,230,000 after purchasing an additional 26 shares in the last quarter. Finally, Keel Point LLC grew its stake in Gartner by 5.5% in the fourth quarter. Keel Point LLC now owns 514 shares of the information technology services provider's stock valued at $249,000 after purchasing an additional 27 shares in the last quarter. 91.51% of the stock is currently owned by institutional investors.

Insiders Place Their Bets

In related news, EVP Akhil Jain sold 625 shares of the stock in a transaction dated Monday, May 19th. The stock was sold at an average price of $450.00, for a total transaction of $281,250.00. Following the completion of the transaction, the executive vice president directly owned 6,548 shares in the company, valued at approximately $2,946,600. This trade represents a 8.71% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CFO Craig Safian sold 3,415 shares of the stock in a transaction dated Tuesday, May 13th. The stock was sold at an average price of $450.17, for a total value of $1,537,330.55. Following the transaction, the chief financial officer owned 77,890 shares of the company's stock, valued at approximately $35,063,741.30. The trade was a 4.20% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 4,578 shares of company stock worth $2,060,191 over the last ninety days. 2.30% of the stock is currently owned by corporate insiders.

About Gartner

Gartner, Inc operates as a research and advisory company in the United States, Canada, Europe, the Middle East, Africa, and internationally. It operates through three segments: Research, Conferences, and Consulting. The Research segment delivers its research primarily through a subscription service that include on-demand access to published research content, data and benchmarks, and direct access to a network of research experts.