With a market cap of $10.7 billion, Gartner, Inc. (IT) is a leading global research and advisory company that provides business and technology insights to help organizations make informed decisions and improve performance on mission-critical priorities. It operates through its Insights, Conferences, and Consulting segments, offering subscription-based research, executive conferences, and strategic technology consulting services to clients worldwide.
Shares of the Stamford, Connecticut-based company have significantly lagged behind the broader market over the past 52 weeks. IT stock has dropped 63.8% over this time frame, while the broader S&P 500 Index ($SPX) has risen 29.9%. Moreover, shares of the company have decreased 37.2% on a YTD basis, compared to SPX's 10.1% gain.
Looking more closely, shares of the technology information and analysis company have underperformed the State Street Technology Select Sector SPDR ETF's (XLK) 63.9% increase over the past 52 weeks.
Shares of Gartner rose 1.2% on May 5 after the company reported stronger-than-expected Q1 2026 results, including revenue of $1.5 billion, adjusted EPS of $3.32, EBITDA of $395 million, and free cash flow of $371 million. Investor sentiment was further boosted after Gartner raised its full-year 2026 guidance, projecting adjusted EPS of at least $13.25, EBITDA of at least $1.545 billion, free cash flow of at least $1.16 billion, and revenue of at least $6.405 billion.
The stock also benefited from management’s confidence that contract value growth would accelerate through 2026, alongside its expectation of delivering adjusted EPS compound annual growth above 12% over the next three years.
For the fiscal year ending in December 2026, analysts expect Gartner's adjusted EPS to rise 4% year-over-year to $13.70. The company's earnings surprise history is promising. It beat the consensus estimates in the last four quarters.
Among the 15 analysts covering the stock, the consensus rating is a “Hold.” That’s based on three “Strong Buy” ratings, 10 “Holds,” one “Moderate Sell,” and one “Strong Sell.”
On May 7, Baird reduced its price target for Gartner to $203 while maintaining an “Outperform” rating.
The mean price target of $167.25 represents a 5.1% premium to IT’s current price levels. The Street-high price target of $203 suggests a 27.6% potential upside.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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