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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 management's downbeat 2026 guidance, which came in below analyst expectations. The company's forecasting of annual revenue and earnings was also affected by slowing demand at its consulting unit, as enterprises scaled back spending. Furthermore, an investigation into potential violations of federal securities laws by Levi & Korsinsky has added to the stock's downward pressure. Despite beating Q4 earnings and revenue estimates, the company's growth deceleration and AI disruption fears persist, with revenue growth of only 2.2% year-over-year.

1.c. Company Highlights

2. Gartner's Q4 2025 Earnings: A Strong Performance with Strategic Divestiture

Gartner reported a revenue of $1.8 billion for Q4 2025, representing a 2% year-over-year growth, both as reported and FX neutral. For the full year, revenue reached $6.5 billion, up 4% as reported and 3% FX neutral. The company's EBITDA was $436 million, a 5% increase as reported and 1% FX neutral, with EBITDA margins expanding to 24.9%, about 60 basis points higher than last year's Q4. Adjusted EPS came in at $3.94, slightly above the estimate of $3.5 is not actual, actual came out at '3.36'. Operating cash flow for Q4 was $295 million, and free cash flow was $271 million.

Publication Date: Feb -04

📋 Highlights
  • Revenue Growth:: Q4 revenue reached $1.8 billion (+2% YoY), with full-year revenue hitting $6.5 billion (+4% YoY).<br><b>EBITDA Performance:</b> Q4 EBITDA was $436 million (+5% YoY), with full-year EBITDA at $1.6 billion (+4% YoY) and margins of 24.8%.
  • Stock Repurchase & Free Cash Flow:: $2 billion in 2025 share buybacks, alongside $1.2 billion in full-year free cash flow and 8% YoY reduction in shares outstanding to 71 million.<br><b>Return on Invested Capital:</b> Exceeded 20%, reflecting strong capital efficiency.
  • Contract Value Trends:: Insights segment contract value was $5.2 billion (+1% YoY), with non-U.S. federal growth at 4%. Global Business Sales CV rose 3% to $1.2 billion.<br><b>2026 Guidance:</b> Insights revenue of $5.9B+ (1% FX-neutral growth), Conferences revenue of $695M+ (7% FX-neutral growth), and EBITDA of $1.515B+.
  • Strategic Divestiture:: Sale of digital markets business to focus on core Business Technology Insights (BTI), driving client value through AI and automation.<br><b>Operational Efficiency:</b> 75% reduction in insight production time via AI/automation, with sales AI tools enhancing team productivity.
  • Margin Outlook:: 2026 margin contraction expected as a new baseline, but margin expansion anticipated through accelerated CV growth and operating expenses growing at ~5% YoY.<br><b>Retention Progress:</b> 100 bps YoY improvement in global sales client retention rates despite budget-driven challenges.

Segment Performance

The Insight segment, Gartner's largest business, recorded revenue growth of 3% year-over-year as reported and 1% FX neutral in Q4. Contract value stood at $5.2 billion at the end of the quarter, up 1% versus the prior year. Excluding the U.S. federal government, contract value growth was about 4%. Global Technology Sales contract value was $3.9 billion, roughly flat compared to the prior year, while Global Business Sales contract value was $1.2 billion, up 3% year-over-year.

Guidance and Strategic Initiatives

Gartner provided its 2026 guidance, expecting Insights revenue of $5.9 billion or more, with FX-neutral growth of about 1%. The company anticipates consolidated revenue of $6.455 billion or more, representing FX-neutral growth of 2%. Gartner also announced a definitive agreement to sell its digital markets business, aiming to focus on delivering insights to clients. As Gene Hall, Gartner's Chairman and CEO, highlighted the company's efforts to transform its business, the divestiture is part of the strategic changes to enhance the business and improve growth rates.

Valuation and Growth Prospects

With a P/E Ratio of 15.81 and an EV/EBITDA of 11.46, the market seems to have priced in moderate growth expectations. Gartner's ROIC of 20.05% and ROE of 58.97% indicate strong profitability. Analysts estimate next year's revenue growth at 5.8%, suggesting a potential upside. The company's commitment to returning capital to shareholders through share repurchases, having bought back $2 billion worth of stock in 2025, is also a positive signal.

Operational Efficiency and Client Engagement

Gartner has been enhancing its operational efficiency, including the use of AI-based tools to improve sales team productivity and client engagement. The company has seen a 100 bps year-over-year increase in global sales client retention rates. The company expects to accelerate contract value growth in 2026, driven by its strategic initiatives and investments in business and technology insights analysts, artificial intelligence, and sales capabilities.

3. NewsRoom

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Fraud Investigation: Levi & Korsinsky Investigates Gartner, Inc. (IT) on Behalf of Shareholders

05:07

Source: newsfilecorp.com

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INVESTOR ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of Gartner, Inc. - IT

Feb -20

Source: prnewswire.com

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IT ACTIVE INVESTIGATION: Contact Levi & Korsinsky if you lost money on your Gartner, Inc. investment

Feb -19

Source: globenewswire.com

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Lost Money on Gartner, Inc. (IT)? Contact The Gross Law Firm Regarding an Ongoing Investigation

Feb -18

Source: globenewswire.com

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IT ALERT: Levi & Korsinsky Investigates Gartner, Inc. on Behalf of Shareholders Who Lost Money

Feb -18

Source: newsfilecorp.com

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Gartner Shares Sink to 52-Week Low After Q4 Revenue and 2026 Outlook Misses

Feb -18

Source: prnewswire.com

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Baron Partners Fund Q4 2025 Contributors And Detractors

Feb -17

Source: seekingalpha.com

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IT ALERT: Levi & Korsinsky Reminds Investors of an Investigation Involving Possible Securities Fraud Violations by Gartner, Inc.

Feb -12

Source: globenewswire.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

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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

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Cognizant

A-Score: 5.7/10

Value: 4.9

Growth: 4.7

Quality: 7.6

Yield: 3.0

Momentum: 5.0

Volatility: 9.0

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IBM

A-Score: 5.7/10

Value: 1.8

Growth: 3.0

Quality: 6.0

Yield: 6.0

Momentum: 9.0

Volatility: 8.3

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FIS

A-Score: 4.4/10

Value: 2.8

Growth: 3.6

Quality: 4.4

Yield: 5.0

Momentum: 2.5

Volatility: 8.0

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Fiserv

A-Score: 4.3/10

Value: 7.5

Growth: 8.1

Quality: 6.4

Yield: 0.0

Momentum: 0.0

Volatility: 3.7

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Gartner

A-Score: 4.2/10

Value: 3.5

Growth: 8.1

Quality: 8.0

Yield: 0.0

Momentum: 0.5

Volatility: 5.0

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

144.97$

Current Price

144.97$

Potential

-0.00%

Expected Cash-Flows