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Diversified Offerings Aid Gartner Amid Rising Costs & Competition
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Key Takeaways
IT beat Q4 estimates with $3.94 EPS on $1.8B revenues, up 2.2% year over year.
IT's research, advisory services and low client concentration support steady demand.
IT faces rising talent costs, AI-driven in-house shift and forex risks pressuring margins.
Gartner Inc’s (IT - Free Report) top line is gaining from its differentiated and specialized information technology research and advisory services. The company’s highly qualified employee base and collaborations with academic experts further enhance its expertise and help build solid client relationships. Shareholder-friendly policies are an added advantage.
However, stiff competition within the industry continues to put pressure on IT to boost profitability and scalability. Ever-rising talent costs also remain a significant concern for the company.
How is IT Faring?
IT’s insight reports have become an indispensable tool for companies across different sectors. Gartner uses advanced technologies to collect and analyze troves of data in providing key insights and decision-support solutions for an informed decision-making process. These insights have enabled customers across the spectrum to research, analyze and interpret the business with greater precision, efficiency and discipline.
The company offers a wide range of products and services with low customer concentration, which mitigates operating risks, enabling it to have a competitive advantage against its rivals. Leveraging the breadth and depth of its intellectual capital, Gartner creates and distributes proprietary research content via published reports, interactive tools, facilitated peer networking, briefings, consultancy and advisory services, and events.
IT offers timely, high-quality, unbiased, thought-provoking and comprehensive analysis that has become critical for all firms to support higher productivity, improve performance metrics, and protect the enterprise from cybersecurity threats.
In 2025, 2024, 2023 and 2022, the company repurchased shares worth $2 billion, $700 million, $600 million and $1 billion, respectively. These moves underline the company’s confidence in its business and boost investors’ confidence in the stock.
Meanwhile, higher talent costs due to a competitive talent market are hurting Gartner. The industry’s labor-intensive and high dependence on foreign talent is putting pressure on its operating costs, thus negatively impacting its bottom line. Moreover, while advancements in automation and AI offer massive opportunities, these technologies enable clients to integrate new in-house methods and techniques, potentially reducing their dependence on consulting services firms like IT.
IT’s international presence across countries and territories exposes it to risks associated with foreign currency exchange rate fluctuations. The appreciation or depreciation of the U.S. dollar versus foreign currencies such as the British pound, euro, Canadian dollar, Australian dollar and Japanese yen could impact the company's financial results.
Additionally, IT faces significant competition within the industry, which affects its profitability and its ability to innovate while maintaining cost efficiency. The company faces pricing pressure from competitors and an increasing trend of clients developing in-house manpower resources through AI-powered tools.
Recently, IT reported impressive fourth-quarter 2025 results. It earned an adjusted profit of $3.94 per share, which beat the Zacks Consensus Estimate by 12.6% but decreased 27.7% from the year-ago quarter. Revenues of $1.8 billion came marginally ahead of the consensus estimate and increased 2.2% year over year.
Below, we present the results of some other companies from the Zacks Business Services sector.
Waste Connections’ adjusted earnings (excluding 28 cents from non-recurring items) of $1.29 per share marginally beat the Zacks Consensus Estimate and increased 11.2% year over year. WCN’s revenues of $2.4 billion met the consensus estimate and grew 5% from the year-ago quarter.
EFX’s adjusted earnings were $2.09 per share, outpacing the Zacks Consensus Estimate by 2.5% but declining 1.4% from the year-ago quarter. Equifax’s total revenues of $1.6 billion surpassed the consensus estimate by 1.3% and grew 9.2% on a year-over-year basis.
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Diversified Offerings Aid Gartner Amid Rising Costs & Competition
Key Takeaways
Gartner Inc’s (IT - Free Report) top line is gaining from its differentiated and specialized information technology research and advisory services. The company’s highly qualified employee base and collaborations with academic experts further enhance its expertise and help build solid client relationships. Shareholder-friendly policies are an added advantage.
Gartner, Inc. Revenue (TTM)
Gartner, Inc. revenue-ttm | Gartner, Inc. Quote
However, stiff competition within the industry continues to put pressure on IT to boost profitability and scalability. Ever-rising talent costs also remain a significant concern for the company.
How is IT Faring?
IT’s insight reports have become an indispensable tool for companies across different sectors. Gartner uses advanced technologies to collect and analyze troves of data in providing key insights and decision-support solutions for an informed decision-making process. These insights have enabled customers across the spectrum to research, analyze and interpret the business with greater precision, efficiency and discipline.
The company offers a wide range of products and services with low customer concentration, which mitigates operating risks, enabling it to have a competitive advantage against its rivals. Leveraging the breadth and depth of its intellectual capital, Gartner creates and distributes proprietary research content via published reports, interactive tools, facilitated peer networking, briefings, consultancy and advisory services, and events.
IT offers timely, high-quality, unbiased, thought-provoking and comprehensive analysis that has become critical for all firms to support higher productivity, improve performance metrics, and protect the enterprise from cybersecurity threats.
In 2025, 2024, 2023 and 2022, the company repurchased shares worth $2 billion, $700 million, $600 million and $1 billion, respectively. These moves underline the company’s confidence in its business and boost investors’ confidence in the stock.
Meanwhile, higher talent costs due to a competitive talent market are hurting Gartner. The industry’s labor-intensive and high dependence on foreign talent is putting pressure on its operating costs, thus negatively impacting its bottom line. Moreover, while advancements in automation and AI offer massive opportunities, these technologies enable clients to integrate new in-house methods and techniques, potentially reducing their dependence on consulting services firms like IT.
IT’s international presence across countries and territories exposes it to risks associated with foreign currency exchange rate fluctuations. The appreciation or depreciation of the U.S. dollar versus foreign currencies such as the British pound, euro, Canadian dollar, Australian dollar and Japanese yen could impact the company's financial results.
Additionally, IT faces significant competition within the industry, which affects its profitability and its ability to innovate while maintaining cost efficiency. The company faces pricing pressure from competitors and an increasing trend of clients developing in-house manpower resources through AI-powered tools.
Recently, IT reported impressive fourth-quarter 2025 results. It earned an adjusted profit of $3.94 per share, which beat the Zacks Consensus Estimate by 12.6% but decreased 27.7% from the year-ago quarter. Revenues of $1.8 billion came marginally ahead of the consensus estimate and increased 2.2% year over year.
Below, we present the results of some other companies from the Zacks Business Services sector.
Waste Connections, Inc. (WCN - Free Report) reported impressive fourth-quarter 2025 results.
Waste Connections’ adjusted earnings (excluding 28 cents from non-recurring items) of $1.29 per share marginally beat the Zacks Consensus Estimate and increased 11.2% year over year. WCN’s revenues of $2.4 billion met the consensus estimate and grew 5% from the year-ago quarter.
Equifax Inc. (EFX - Free Report) posted impressive fourth-quarter 2025 results.
EFX’s adjusted earnings were $2.09 per share, outpacing the Zacks Consensus Estimate by 2.5% but declining 1.4% from the year-ago quarter. Equifax’s total revenues of $1.6 billion surpassed the consensus estimate by 1.3% and grew 9.2% on a year-over-year basis.