Gartner, Inc. (IT Quick QuoteIT - Free Report) combines a discounted valuation with improving earnings expectations, but its revenue picture remains uneven. Profitability and free cash flow are holding up better than the top line, giving investors a clear reason to examine the stock after its valuation reset.

The key question is whether stronger earnings signals and cash generation are enough to outweigh slower sales growth, weakness in Consulting and balance-sheet constraints.

Gartner Trades Below Key Earnings Benchmarks

Gartner trades at 12.6X forward 12-month earnings, below the industry’s 14.4X, the sector’s 18.1X and the S&P 500’s 20.7X. The stock also sits well below its five-year median of 33.9X, leaving valuation as one of the clearest positives in the investment case.

                                                                 Image Source: Zacks Investment Research

                                                                  Image Source: Zacks Investment Research

That discount matters because Gartner is not being priced like its own recent history. For investors willing to accept slower growth and operating uncertainty, the lower multiple provides a wider valuation cushion than the company has typically offered.

IT’s Earnings Outlook Is Moving Higher

Gartner raised its 2026 adjusted earnings guidance to at least $14 per share from $13.25. It also lifted its adjusted EBITDA outlook, excluding the divested operation, to at least $1.57 billion from $1.55 billion.

The Zacks Consensus Estimate for current-year earnings has moved 3.9% higher over the past four weeks. That upward revision trend strengthens the earnings side of the case even as the company’s revenue guidance has become more restrained.

Gartner’s Revenue Picture Remains Uneven

Management lowered its 2026 adjusted revenue outlook to at least $6.38 billion from $6.41 billion and reduced the Insights revenue forecast to at least $5.17 billion from $5.20 billion. Second-quarter Consulting revenues fell 8.8% year over year to $142 million, while Conferences revenues rose 15.5% to $244 million.

Forrester Research, Inc. (FORR Quick QuoteFORR - Free Report) , another research and advisory provider, reported second-quarter 2026 contract value down 3% year over year. Accenture (ACN Quick QuoteACN - Free Report) , a major consulting competitor, reported fiscal second-quarter consulting revenue growth of 3% in local currency. Those results provide useful context for Gartner’s mixed segment trends.

IT’s Cash Generation Offsets Some Risks

Gartner generated $378 million of free cash flow in the second quarter and about $1.3 billion over the trailing 12 months. Management also raised its 2026 free cash flow outlook to at least $1.19 billion, supporting continued financial flexibility and capital returns.

The balance sheet still deserves attention. Gartner had about $3 billion of total debt at June 30, while its current ratio was roughly 0.88. Competition, foreign-exchange swings and the cost of attracting and retaining skilled analysts, consultants and sales professionals remain additional risks.

Gartner’s Ratings Favor Value With Growth Caveats

The stock’s setup favors investors who prioritize valuation and earnings revisions over rapid near-term revenue expansion. The lower earnings multiple, higher earnings guidance and cash generation are constructive, but slower adjusted revenue expectations and Consulting weakness argue against treating the discount as risk-free.

Gartner currently carries a Zacks Rank #1 (Strong Buy). It carries a Value Score of A and VGM Score of A. Its Growth Score of B and Momentum Score of B are also favorable. The combination supports the stock’s near-term profile, though the uneven top line and liquidity considerations remain important when weighing whether to buy now or wait for clearer revenue acceleration. You can see the complete list of today’s Zacks #1 Rank stocks here.