Gartner (NYSE:IT) Issues Quarterly Earnings Results, Beats Expectations By $0.61 EPS

Gartner (NYSE:IT) released its earnings results on Tuesday. The information technology services provider reported $4.37 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $3.76 by $0.61, FiscalAI reports. Gartner had a net margin of 11.44% and a return on equity of 161.39%. The company had revenue of $1.68 billion for the quarter, compared to analyst estimates of $1.65 billion. During the same period in the prior year, the business earned $3.53 EPS. The firm’s quarterly revenue was down .6% on a year-over-year basis. 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

Shares of IT stock traded up $25.23 during trading hours on Tuesday, hitting $176.76. The stock had a trading volume of 1,088,577 shares, compared to its average volume of 1,563,612. 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 firm has a market capitalization of $11.83 billion, a PE ratio of 17.52, a PEG ratio of 0.83 and a beta of 0.97. The stock’s 50 day moving average is $144.44 and its 200 day moving average is $158.78. Gartner has a twelve month low of $124.25 and a twelve month high of $265.85.

Key Stories Impacting Gartner

Here are the key news stories impacting Gartner this week:

• Positive Sentiment: Quarterly earnings exceeded expectations: Gartner reported adjusted EPS of $4.37, above the $3.76–$3.77 analyst consensus and up from $3.53 a year earlier. Revenue of approximately $1.68 billion also surpassed estimates of about $1.65 billion. Gartner Q2 Earnings and Revenues Beat Estimates
• Positive Sentiment: Guidance was raised relative to Wall Street expectations: Gartner issued fiscal 2026 EPS guidance of at least $14.00, above the consensus estimate of $13.69, reinforcing expectations for continued earnings growth.
• Positive Sentiment: Share repurchases supported the stock: Gartner bought back 3.6 million shares for $547 million during the quarter, while its board increased the repurchase authorization by another $500 million. The buyback reduces shares outstanding and may support per-share earnings.
• Positive Sentiment: Profitability and contract demand improved: Net income rose to $275.5 million from $240.8 million a year earlier, while contract value increased 1.7% year over year to $5.3 billion on an FX-neutral basis. Operating cash flow was $398 million and free cash flow was $378 million. Gartner Q2 Revenue Falls as Net Income Rises
• Neutral Sentiment: Gartner’s market research remained visible: Recent articles referenced Gartner’s 2026 Magic Quadrant reports covering SASE and IT service-management platforms. These publications may support the company’s industry profile but were not presented as a material new financial catalyst.
• Negative Sentiment: Revenue declined slightly: Second-quarter revenue fell 0.6% year over year to $1.676 billion, indicating that growth remains modest despite the earnings and profitability improvements.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of IT. Brighton Jones LLC purchased a new stake in Gartner in the 4th quarter worth approximately $309,000. Sivia Capital Partners LLC acquired a new stake in shares of Gartner during the second quarter worth $336,000. Aptus Capital Advisors LLC grew its position in shares of Gartner by 16.0% in the fourth quarter. Aptus Capital Advisors LLC now owns 1,066 shares of the information technology services provider’s stock valued at $269,000 after purchasing an additional 147 shares during the period. PCM Encore LLC purchased a new stake in shares of Gartner in the fourth quarter valued at $211,000. Finally, StoneX Group Inc. acquired a new position in Gartner in the fourth quarter valued at $212,000. 91.51% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

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

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.