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Gartner (IT) Up 5.8% Since Last Earnings Report: Can It Continue?
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It has been about a month since the last earnings report for Gartner (IT - Free Report) . Shares have added about 5.8% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Gartner due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important catalysts.
Gartner Surpasses Q4 Earnings Estimates
Gartner has reported fourth-quarter 2025 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate.
The company’s adjusted earnings per share of $3.94 beat the Zacks Consensus Estimate by 12.6% but decreased 27.7% from the year-ago quarter. Revenues of $1.8 billion beat the consensus estimate by a slight margin and improved 2.2% year over year.
IT’s Revenues by Segments
Revenues in the Insights segment were $1.3 billion, which increased 3% from the year-ago quarter on a reported basis and 1% on a foreign-currency-neutral basis. The gross contribution margin was 77%, which amounted to a gross contribution of $989 million in the fourth quarter of 2025.
Conferences segment revenues amounted to $286 million, which jumped 14% from the year-ago quarter on a reported basis and 11% on a foreign-currency-neutral basis. The gross contribution margin was 51% in the reported quarter, which amounted to a gross contribution of $147 million.
Consulting revenues were $134 million, which declined 13% year over year on a reported basis and 15% on a foreign-currency-neutral basis. The gross contribution margin was 27%, which logged a gross contribution of $36 million.
Gartner’s Operating Performance
Adjusted EBITDA of $436 million gained 5% from the year-ago quarter on a reported basis and 1% on a foreign-currency-neutral basis.
Balance Sheet & Cash Flow of IT
Gartner had $1.7 billion in cash and cash equivalents at the end of the fourth quarter compared with $1.4 billion at the end of the preceding quarter. The long-term debt was $3 billion compared with $2.5 billion in the third quarter of 2025.
The operating cash flow totaled $294.5 million and the free cash flow utilized was $311 million in the reported quarter. Capital expenditure totaled $23.8 million.
Gartner’s 2026 Outlook
For 2026, the company expects revenues of $6.46 billion. IT’s guidance for adjusted earnings per share is $12.3. The adjusted EBITDA guidance is kept at $1.52 billion. The free cash flow guidance is set at $1.14 billion.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
VGM Scores
Currently, Gartner has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for value investors.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Gartner has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Gartner (IT) Up 5.8% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for Gartner (IT - Free Report) . Shares have added about 5.8% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Gartner due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important catalysts.
Gartner Surpasses Q4 Earnings Estimates
Gartner has reported fourth-quarter 2025 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate.
The company’s adjusted earnings per share of $3.94 beat the Zacks Consensus Estimate by 12.6% but decreased 27.7% from the year-ago quarter. Revenues of $1.8 billion beat the consensus estimate by a slight margin and improved 2.2% year over year.
IT’s Revenues by Segments
Revenues in the Insights segment were $1.3 billion, which increased 3% from the year-ago quarter on a reported basis and 1% on a foreign-currency-neutral basis. The gross contribution margin was 77%, which amounted to a gross contribution of $989 million in the fourth quarter of 2025.
Conferences segment revenues amounted to $286 million, which jumped 14% from the year-ago quarter on a reported basis and 11% on a foreign-currency-neutral basis. The gross contribution margin was 51% in the reported quarter, which amounted to a gross contribution of $147 million.
Consulting revenues were $134 million, which declined 13% year over year on a reported basis and 15% on a foreign-currency-neutral basis. The gross contribution margin was 27%, which logged a gross contribution of $36 million.
Gartner’s Operating Performance
Adjusted EBITDA of $436 million gained 5% from the year-ago quarter on a reported basis and 1% on a foreign-currency-neutral basis.
Balance Sheet & Cash Flow of IT
Gartner had $1.7 billion in cash and cash equivalents at the end of the fourth quarter compared with $1.4 billion at the end of the preceding quarter. The long-term debt was $3 billion compared with $2.5 billion in the third quarter of 2025.
The operating cash flow totaled $294.5 million and the free cash flow utilized was $311 million in the reported quarter. Capital expenditure totaled $23.8 million.
Gartner’s 2026 Outlook
For 2026, the company expects revenues of $6.46 billion. IT’s guidance for adjusted earnings per share is $12.3. The adjusted EBITDA guidance is kept at $1.52 billion. The free cash flow guidance is set at $1.14 billion.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
VGM Scores
Currently, Gartner has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for value investors.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Gartner has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.