Gartner, Inc. IT
Gartner's Q2 2026 earnings beat and raised full-year EPS/FCF outlook sparked a 39.3% one-month rally that has pushed the stock back to its 200-day MA ($180.17), but the underlying fundamental picture remains mixed. FY2025 results show revenue of $6.50B growing only 3.67% while EPS collapsed 39.69% to $9.65 and operating income fell for a second consecutive year to $1.03B, with operating margin compressing to 15.79% from 20.94% in FY2023.
At 16.3x P/E the stock trades at a modest 3.9% discount to the peer median, but a shareholder fiduciary-duty investigation and the company's own lowered revenue guidance for 2026 offset the margin improvement story. With the stock now fully recovered to its long-term trend line after an explosive run, the risk/reward is balanced rather than compelling.
What could go wrong
- Shareholder investigation. Bernstein Liebhard announced a fiduciary-duty investigation into certain directors and officers on August 12 and August 18, 2026, creating legal and reputational overhang that could escalate.
- Earnings deterioration trend. FY2025 EPS fell 39.69% to $9.65 from $16.00 in FY2024, and operating income declined for two straight years from $1.24B in FY2023 to $1.03B in FY2025, suggesting structural margin pressure rather than a one-off.
- Balance sheet leverage. Total debt rose to $3.62B in FY2025 while stockholders' equity collapsed to $320M from $1.36B in FY2024, driven by aggressive buybacks that amplify risk if earnings disappoint.
- Overbought after sharp rally. The stock has rallied 39.3% in one month to $182.07, now sitting at the 200-day MA ($180.17) with RSI at 61.7, limiting near-term upside and increasing vulnerability to any negative surprise.
What would change my mind
Where this comes from: FMP FY2025 annual + derived_metrics · FMP annual fundamentals · peer_relative composite · Zacks news articles 2026-08-07. Orin's read on IT; not advice.
Twelve months actual closes to 2026-09-24 · actual filings
50-day average 200-day average · volume below
On file
All IT filings| Form | Filed | What it says | Read |
|---|---|---|---|
| 13G/A | 13 Aug | — | on file |
| 13G/A | 13 Aug | — | on file |
| 10-Q | 4 Aug | Gartner, Inc. reported net income of $275.5 million ($4.14 diluted EPS) for the three months ended June 30, 2026, an increase from $240.8 million ($3.11 diluted EPS) in the prior… | read |
| 8-K | 4 Aug | Gartner, Inc. reported second quarter 2026 results, with diluted EPS of $4.14, an increase of 33.1% year-over-year. Adjusted revenues were $1.7 billion, up 2.8% as reported and… | read |
| 13G/A | 28 Jul | — | on file |
| 13G/A | 3 Jun | — | on file |
| 8-K | 2 Jun | Gartner, Inc. held its 2026 Annual Meeting of Stockholders on May 28, 2026, with results reported under Item 5.07. All thirteen director nominees were elected, with votes for each… | read |
| 13G/A | 15 May | — | on file |
Largest holders · 13F Q2 2026
Money flow| Filer | Position | Of fund |
|---|---|---|
| Bamco /Ny/ | $985.2M | 1.5% of fund |
| Vanguard Capital Management | $553.0M | 0.0% of fund |
| Aqr Capital Management | $541.2M | 0.2% of fund |
| Vanguard Portfolio Management | $456.4M | 0.0% of fund |
| Harris Associates L P | $369.0M | 0.5% of fund |
| State Street | $364.1M | 0.0% of fund |
85 filers · quarter ended Q2 2026 · positions, not flows
Insiders, last 24 months: 453 Form 4 filings, net $29.4M. Of the 50 on hand, 0 were open-market purchases and 5 sales— the rest are grants, option exercises and tax withholding.
Ask Orin about IT
Orin answers questions about IT from its filings, transcripts and numbers — with the source behind every claim. Your own desk starts with 3 free days, card required.
Start 3 free days →Where it trades
| Metric | Now | Own median | Sector |
|---|---|---|---|
| P/E | 16.1× | 33.4× | 53.3× |
| EV/EBITDA | 10.4× | 22.5× | — |
| P/S | 1.86× | 6.00× | — |
Its P/E sits below all 5 of the last 5 years (−3.22σ from its own mean).
-1.6%
free-cash-flow growth every year for 10 years, discounted at 10%, is what today’s price implies — starting from $1.2B of trailing free cash flow. It is an assumption the market is making, not a forecast Orin is making.
What Wall Street published
$173
$120 – $206 · −7% against today's price
- 5 buy or overweight
- 10 hold
- 3 underweight or sell
The analysts’ consensus and their own ratings, not Orin’s. A target is a twelve-month opinion published by the firm that wrote it.
Against the companies it is compared to
| Company | Market cap | P/E | EV/EBITDA | Gross | Net | ROE |
|---|---|---|---|---|---|---|
| ITGartner, Inc. | $12B | 16.1× | 10.4× | 68.9% | 12.0% | 401% |
| CDWCDW Corporation | $18B | 16.7× | 12.8× | 21.4% | 4.6% | 43% |
| CPAYCorpay, Inc. | $26B | 24.0× | 13.8× | 73.3% | 22.7% | 30% |
| FTVFortive Corporation | $17B | 32.2× | 18.5× | 63.2% | 12.4% | 9% |
| GDDYGoDaddy Inc. | $13B | 14.8× | 11.4× | 63.8% | 17.8% | 661% |
| JJacobs Solutions Inc. | $16B | 47.2× | 20.9× | 22.1% | 2.4% | 10% |
| LDOSLeidos Holdings, Inc. | $16B | 11.4× | 9.3× | 17.4% | 7.9% | 28% |
| TRMBTrimble Inc. | $13B | — | 55.8× | 68.4% | -2.8% | -2% |
| UMCUnited Microelectronics Corporation | $60B | 23.0× | 12.0× | 30.6% | 33.3% | 21% |
The median is of the 7 peers listed above and nothing else — check it against the column. This company trades 30.2% below it. The peer set is the vendor’s, so a company can appear here that a person would not have chosen.
What it has traded at
What its sector has traded at
Two scales, drawn separately on purpose: a sector median and one company’s multiple are not the same number and putting them on one axis invites a comparison neither series supports.
Discounted cash flow
| Model | Fair value | Against | Computed |
|---|---|---|---|
| Standard DCF | $428 | $156.95 · +173% | 2026-06-10 |
| Levered DCF | $471 | $156.95 · +200% | 2026-06-10 |
The vendor’s intrinsic-value models. Treat them as a low-growth anchor — for a fast grower the market routinely pays well above a DCF. These were computed against the price in the “against” column, not today’s.
Every estimate on one scale
The vertical rule is the current price. Ranges and point estimates are the backend’s, published as they were calculated; an arrow means the estimate sits beyond this scale, and its number is on the right.