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1. Company Snapshot

1.a. Company Description

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.The Conferences segment offers business professionals in an organization the opportunity to learn, share, and network.The Consulting segment offers market research, custom analysis, and on-the-ground support services.


This segment also offers actionable solutions for IT-related priorities, including IT cost optimization, digital transformation, and IT sourcing optimization.Gartner, Inc.was founded in 1979 and is headquartered in Stamford, Connecticut.

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1.b. Last Insights on IT

Gartner's recent performance was negatively impacted by a decelerating Contract Value growth and worsening macro/geopolitical headwinds. The company's 2Q25 results showed a sharp slowdown in forward-looking metrics, forcing a cut in revenue guidance and resetting investor expectations. Additionally, government procurement friction and new tariff-related uncertainty intensified, leading to client cost-cutting and elongated sales cycles. An investigation by Edelson Lechtzin LLP into potential violations of federal securities laws also added to the negative sentiment.

1.c. Company Highlights

2. Gartner's Q3 Earnings: A Strong Performance Amidst a Dynamic Macroeconomic Environment

Gartner's Q3 financial results were impressive, with revenue growing 3% year-over-year to $1.5 billion, and adjusted EPS increasing 10% to $2.76. The company's adjusted EBITDA was $347 million, up 2% year-over-year, demonstrating its ability to maintain profitability despite a challenging macroeconomic environment. The strong performance was driven by a 3% year-over-year growth in contract value, with enterprise client retention remaining strong and contract renewal rates improving from the second quarter. The actual EPS of $2.76 was significantly higher than the estimated $0.4715 is not correct it is actually 2.76 and the estimated was 2.41.

Publication Date: Nov -05

📋 Highlights
  • Outperforming Financials:: Q3 revenue reached $1.5B (+3% YoY), adjusted EPS hit $2.76 (+10% YoY), and free cash flow totaled $269M with $2.1B liquidity.
  • Stock Repurchases:: Gartner repurchased $1B of stock, reducing share count by 6% YoY while maintaining a strong balance sheet.
  • AI-Driven Growth:: 6,000+ AI insights documents and enterprise access to AskGartner position the company to meet rising AI demand, with internal AI productivity improvements.
  • Full-Year Guidance Raised:: Revenue now expected ≥$6.475B (+$60M from prior), with EBITDA margin target of 24.3% and free cash flow ≥$1.145B.
  • Contract Value Momentum:: Excluding U.S. federal, CV grew 6% QoQ with 6% YoY growth, signaling a path to high-single-digit CV growth by 2026 and double-digit growth post-2027.

Operational Adaptations Yielding Results

Gartner's operational adaptations are starting to yield results, with the company delivering great value to its clients. The company repurchased over $1 billion of stock in the quarter, reducing the share count by 6% year-over-year. Gartner is well-positioned to meet the unprecedented demand for help with AI, having developed indispensable AI insights captured in over 6,000 documents. The company's entire client base has access to its AI-driven tool, AskGartner, which enables quick access to business and technology insights.

Guidance Increase and Long-term Growth Prospects

Gartner is increasing its full-year guidance, expecting revenue growth to benefit by about 80 basis points and EBITDA growth to benefit by about 165 basis points. The company expects Insights revenue of at least $5.06 billion, Conferences revenue of at least $630 million, and consulting revenue of at least $575 million, resulting in consolidated revenue of at least $6.475 billion. Gartner's adaptations and strong demand for its services position the company for long-term sustained double-digit growth. Analysts estimate next year's revenue growth at 3.8%, which is relatively conservative considering the company's guidance.

Valuation Metrics

To understand what's priced in, we can look at Gartner's valuation metrics. The company has a P/E Ratio of 19.21, P/B Ratio of 30.57, and P/S Ratio of 2.66. Additionally, the EV/EBITDA is 12.6, and the Free Cash Flow Yield is 7.07%. These metrics suggest that Gartner's stock is relatively expensive, but its strong growth prospects and profitability justify the premium.

Outlook and Challenges

3. NewsRoom

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OneStream Named a 5x Leader in the 2025 Gartner Magic Quadrant for Financial Planning Software

Dec -04

Source: prnewswire.com

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Commvault Showcases Unified Cyber Resilience at Gartner IT Infrastructure, Operations & Cloud Strategies (IOCS) Conference 2025

Dec -03

Source: prnewswire.com

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Docusign Named a Leader in the 2025 Gartner® Magic Quadrant™ for Contract Life Cycle Management for the Sixth Consecutive Year

Nov -14

Source: prnewswire.com

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Gartner Announces Pricing of $800 million of Senior Notes

Nov -13

Source: businesswire.com

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Gartner Announces Proposed Offering of Senior Notes

Nov -13

Source: businesswire.com

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Baron Asset Fund Q3 2025 Performance Review

Nov -13

Source: seekingalpha.com

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Rapid7 Recognized as a Leader in the 2025 Gartner® Magic Quadrant™ for Exposure Assessment Platforms

Nov -12

Source: globenewswire.com

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Cognyte Recognized as a Sample Vendor in the 2025 Gartner® Emerging Tech Impact Radar: Preemptive Cybersecurity

Nov -11

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.70%)

6. Segments

Research

Expected Growth: 7.0%

The research segment is likely to grow at a slightly higher rate than the global average due to increasing demand for data-driven insights and the segment's strong market position, enabling it to capitalize on emerging trends and technologies.

Conferences

Expected Growth: 6.5%

The conferences segment is expected to grow at a rate slightly below the global average due to potential fluctuations in event attendance and sponsorship revenue. However, the shift towards hybrid events is expected to drive growth.

Consulting

Expected Growth: 6.9%

The consulting segment is likely to grow at a rate slightly above the global average due to increasing demand for expert guidance on IT and business strategy, driven by the complexity of emerging technologies and the need for businesses to stay competitive.

7. Detailed Products

Research and Advisory Services

Gartner provides research and advisory services to help businesses make informed decisions. This includes access to research reports, analyst inquiries, and peer networking.

Gartner Conferences

Gartner hosts conferences and summits that bring together industry experts and thought leaders to share insights and best practices.

Gartner Consulting

Gartner offers consulting services to help businesses implement strategic initiatives and solve complex problems.

Gartner Benchmarking

Gartner provides benchmarking services to help businesses measure and improve their performance.

Gartner Magic Quadrant

Gartner's Magic Quadrant is a research methodology that provides a graphical competitive positioning of technology providers.

Gartner Peer Insights

Gartner Peer Insights is a platform that provides reviews and ratings of technology products and services from verified users.

8. Gartner, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Gartner, Inc. has a moderate threat of substitutes due to the presence of alternative research and advisory firms, but its strong brand reputation and high-quality research capabilities mitigate this threat.

Bargaining Power Of Customers

Gartner, Inc. has a low bargaining power of customers due to its strong brand reputation and the lack of alternative research and advisory firms that can provide similar services.

Bargaining Power Of Suppliers

Gartner, Inc. has a low bargaining power of suppliers due to its strong financial position and the lack of dependence on a single supplier.

Threat Of New Entrants

Gartner, Inc. has a low threat of new entrants due to the high barriers to entry in the research and advisory industry, including the need for significant investment in research and development.

Intensity Of Rivalry

Gartner, Inc. operates in a highly competitive industry with several established players, leading to a high intensity of rivalry among firms.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 78.98%
Debt Cost 5.62%
Equity Weight 21.02%
Equity Cost 10.53%
WACC 6.65%
Leverage 375.65%

11. Quality Control: Gartner, Inc. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Broadridge Financial Solutions

A-Score: 5.9/10

Value: 2.0

Growth: 7.0

Quality: 6.4

Yield: 4.0

Momentum: 6.0

Volatility: 10.0

1-Year Total Return ->

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IBM

A-Score: 5.5/10

Value: 1.5

Growth: 3.0

Quality: 6.3

Yield: 6.0

Momentum: 8.0

Volatility: 8.3

1-Year Total Return ->

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Cognizant

A-Score: 5.5/10

Value: 5.5

Growth: 4.8

Quality: 7.5

Yield: 3.0

Momentum: 3.0

Volatility: 9.0

1-Year Total Return ->

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Stock-Card
Gartner

A-Score: 4.3/10

Value: 4.1

Growth: 8.1

Quality: 7.7

Yield: 0.0

Momentum: 0.5

Volatility: 5.3

1-Year Total Return ->

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Stock-Card
FIS

A-Score: 4.3/10

Value: 2.7

Growth: 3.6

Quality: 4.4

Yield: 5.0

Momentum: 2.0

Volatility: 8.0

1-Year Total Return ->

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Stock-Card
Fiserv

A-Score: 4.2/10

Value: 6.6

Growth: 8.1

Quality: 6.4

Yield: 0.0

Momentum: 1.0

Volatility: 3.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

229.46$

Current Price

229.46$

Potential

-0.00%

Expected Cash-Flows