Gartner (NYSE:IT) Releases Earnings Results, Beats Estimates By $0.33 EPS

07 May 2026, 17:02 by Jessica Moore · The Cerbat Gem

Gartner (NYSE:IT – Get Free Report) released its quarterly earnings data on Tuesday. The information technology services provider reported $3.32 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.99 by $0.33, FiscalAI reports. The business had revenue of $1.49 billion during the quarter, compared to analyst estimates of $1.51 billion. Gartner had a net margin of 11.44% and a return on equity of 124.23%. Gartner’s quarterly revenue was down 1.5% compared to the same quarter last year. During the same quarter in the previous year, the business earned $2.98 EPS. 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 Stock Performance

IT traded up $7.17 during midday trading on Thursday, reaching $158.22. The company’s stock had a trading volume of 2,433,917 shares, compared to its average volume of 1,584,375. 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 company has a fifty day simple moving average of $156.02 and a 200 day simple moving average of $200.27. The stock has a market cap of $11.15 billion, a P/E ratio of 15.63, a PEG ratio of 0.87 and a beta of 0.91. Gartner has a twelve month low of $139.18 and a twelve month high of $451.73.

Trending Headlines about Gartner

Here are the key news stories impacting Gartner this week:

Positive Sentiment: Q1 earnings and FY‑2026 guidance boost investor sentiment — Gartner beat Q1 EPS estimates and raised its FY26 adjusted EPS target to at/above $13.25, projecting double‑digit EPS growth, which supports the stock’s rally. Gartner guidance rises
Positive Sentiment: Management cites strong AI service demand and raised profit outlook — comments that AI services are driving revenue mix and margin potential are supporting expectations for future profitability. AI demand raises profit forecast
Neutral Sentiment: Earnings‑call nuance — analysts and commentary flagged “solid cash” but “softer growth” on the call, which tempers the enthusiasm because execution and growth trajectory remain watch items. Earnings call takeaways
Neutral Sentiment: Industry tailwind for cybersecurity spending — Gartner’s own forecast of rising information‑security budgets (cited by others) underscores secular demand for research and advisory services, a medium‑term positive for revenue opportunity. Security spending forecast
Neutral Sentiment: Analyst stance remains cautious — brokerage coverage averages to a “Hold,” indicating limited near‑term upside implied by street sentiment. Brokerage recommendations
Negative Sentiment: Large wave of securities‑class‑action notices and lead‑plaintiff solicitations — multiple law firms have filed or are soliciting Gartner investors over the Feb 4, 2025–Feb 2, 2026 period and are pushing a May 18 lead‑plaintiff deadline; this litigation flurry is a clear near‑term risk (legal costs, distraction, potential settlement). Rosen Law Firm notice
Negative Sentiment: Valuation concerns noted — commentary that a compressed valuation multiple has hurt the stock suggests upside may be limited until growth visibility improves or litigation risk clears. Valuation analysis

Institutional Investors Weigh In On Gartner

Hedge funds and other institutional investors have recently modified their holdings of the stock. Brighton Jones LLC bought a new position in shares of Gartner during the 4th quarter worth about $309,000. Sivia Capital Partners LLC bought a new stake in shares of Gartner in the second quarter valued at about $336,000. Cresset Asset Management LLC grew its position in Gartner by 15.2% during the second quarter. Cresset Asset Management LLC now owns 1,446 shares of the information technology services provider’s stock worth $585,000 after buying an additional 191 shares in the last quarter. Sei Investments Co. increased its stake in Gartner by 9.2% during the second quarter. Sei Investments Co. now owns 91,205 shares of the information technology services provider’s stock valued at $36,867,000 after acquiring an additional 7,678 shares during the period. Finally, The Manufacturers Life Insurance Company increased its stake in Gartner by 111.5% during the second quarter. The Manufacturers Life Insurance Company now owns 95,301 shares of the information technology services provider’s stock valued at $38,523,000 after acquiring an additional 50,251 shares during the period. Institutional investors and hedge funds own 91.51% of the company’s stock.

Analysts Set New Price Targets

Several equities analysts have weighed in on the company. UBS Group raised their target price on Gartner from $166.00 to $170.00 and gave the company a “neutral” rating in a report on Wednesday. BMO Capital Markets reissued a “market perform” rating on shares of Gartner in a report on Thursday, February 5th. Truist Financial cut their price objective on Gartner from $300.00 to $170.00 and set a “buy” rating on the stock in a research note on Friday, February 6th. The Goldman Sachs Group set a $162.00 target price on Gartner in a report on Tuesday. Finally, Weiss Ratings cut Gartner from a “sell (d+)” rating to a “sell (d)” rating in a research report on Monday. Two equities research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat, the stock presently has an average rating of “Hold” and an average target price of $176.70.

Check Out Our Latest Analysis on IT

About Gartner

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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.