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Gartner (IT) Down 2.2% Since Last Earnings Report: Can It Rebound?

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It has been about a month since the last earnings report for Gartner (IT - Free Report) . Shares have lost about 2.2% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Gartner due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent catalysts for Gartner, Inc. before we dive into how investors and analysts have reacted as of late.

Gartner Surpasses Q3 Earnings Estimates

Gartner has reported third-quarter 2025 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate.

The company’s adjusted earnings per share of $2.76 beat the Zacks Consensus Estimate by 14.5% and increased 10.4% from the year-ago quarter. Revenues of $1.5 billion beat the consensus estimate by a slight margin and improved 2.7% year over year.

IT’s Revenues by Segments

Revenues in the Insights segment were $1.3 billion, which increased 5.1% from the year-ago quarter on a reported basis and 3.6% on a foreign-currency-neutral basis. The gross contribution margin was 76.7%, which amounted to a gross contribution of $974 million in the third quarter of 2025.

Conferences segment revenues amounted to $75 million, which declined 1.6% from the year-ago quarter on a reported basis and 4.1% on a foreign-currency-neutral basis. The gross contribution margin was 36.6% in the reported quarter, which amounted to a gross contribution of $27 million.

Consulting revenues were $124 million, which fell 3.2% year over year on a reported basis and 4.8% on a foreign-currency-neutral basis. The gross contribution margin was 28.5%, which logged a gross contribution of $35 million.

Gartner’s Operating Performance

Adjusted EBITDA of $347 million moved up 1.9% from the year-ago quarter on a reported basis but declined marginally on a foreign-currency-neutral basis.

Balance Sheet & Cash Flow of IT

Gartner had $1.4 billion in cash and cash equivalents at the end of the third quarter compared with $2.2 billion at the end of the preceding quarter. The long-term debt was $2.5 billion, flat with the second quarter of 2025.

The operating cash flow totaled $299 million and the free cash flow utilized was $269 million in the reported quarter. Capital expenditure totaled $29 million.

Gartner’s 2025 Outlook

For 2025, the company has raised the guidance for total revenues and expects it to be at least $6.48 billion compared with the $6.46 billion provided in the preceding quarter.

IT has raised the guidance for adjusted earnings per share to at least $12.65 from the preceding quarter’s view of $11.75.

The adjusted EBITDA guidance has been hiked to at least $1.58 billion from the $1.52 billion given in the previous quarter. The free cash flow guidance is kept at $1.15 billion.

How Have Estimates Been Moving Since Then?

It turns out, estimates review have trended upward during the past month.

The consensus estimate has shifted 7.56% due to these changes.

VGM Scores

Currently, Gartner has a great Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. Following the exact same course, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Gartner has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Gartner is part of the Zacks Consulting Services industry. Over the past month, Equifax (EFX - Free Report) , a stock from the same industry, has gained 1.2%. The company reported its results for the quarter ended September 2025 more than a month ago.

Equifax reported revenues of $1.54 billion in the last reported quarter, representing a year-over-year change of +7.2%. EPS of $2.04 for the same period compares with $1.85 a year ago.

For the current quarter, Equifax is expected to post earnings of $2.04 per share, indicating a change of -3.8% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.1% over the last 30 days.

Equifax has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.


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