📊 IT Key Takeaways
Is Gartner Inc. (IT) a Good Investment?
Gartner demonstrates solid operational performance with 3.7% revenue growth, strong margins (68.8% gross, 15.8% operating), and excellent free cash flow generation of $1.3B. However, net income declined 41.8% YoY and the balance sheet shows elevated leverage (9.3x debt-to-equity), creating financial constraints despite operational strength.
Gartner shows a fundamentally strong core business with high gross margins, solid operating profitability, and robust cash generation, indicating a durable and asset-light model. However, modest revenue growth and a sharp decline in net income and EPS raise concerns about earnings quality and near-term profit durability. The balance sheet remains manageable from an interest-service standpoint, but very high leverage and extremely low equity reduce financial flexibility.
Why Buy Gartner Inc. Stock? IT Key Strengths
- Strong gross margin of 68.8% indicates pricing power and efficient cost structure in core consulting and research services
- Exceptional free cash flow generation of $1.3B (19.9% FCF margin) demonstrates ability to convert revenue to cash despite earnings pressure
- Outstanding interest coverage ratio of 53.4x shows company can easily service $3.0B long-term debt obligations
- High-margin business model with 68.8% gross margin and 15.8% operating margin
- Strong cash generation, with $1.29B operating cash flow and 19.9% FCF margin
- Excellent interest coverage of 53.4x, indicating low near-term debt servicing stress
IT Stock Risks: Gartner Inc. Investment Risks
- Severe net income decline of 41.8% YoY despite modest revenue growth suggests operational challenges, cost inflation, or one-time charges impacting profitability
- Highly leveraged balance sheet with 9.3x debt-to-equity ratio and $3.0B long-term debt against only $319.9M stockholders equity creates financial fragility
- Tight liquidity with current and quick ratios at 1.0x provides minimal buffer for operational disruptions or debt service obligations
- Net income fell 41.8% YoY and diluted EPS fell 39.7%, signaling meaningful earnings pressure
- Very high debt-to-equity of 9.30x and minimal equity base increase balance sheet risk
- Revenue growth of 3.7% YoY is relatively modest, limiting margin-of-safety if costs or demand weaken
Key Metrics to Watch
- Net income trajectory and margin recovery in upcoming quarters to understand if profitability decline is temporary or structural
- Debt reduction progress and leverage ratio improvement given elevated financial risk from current capital structure
- Subscription revenue retention and growth within research/advisory services to assess core business health and customer satisfaction
- Net income and diluted EPS trend versus revenue growth
- Debt levels and stockholders' equity relative to cash flow generation
Gartner Inc. (IT) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
IT Profit Margin, ROE & Profitability Analysis
IT vs Services Sector: How Gartner Inc. Compares
How Gartner Inc. compares to Services sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Gartner Inc. Stock Overvalued? IT Valuation Analysis 2026
Based on fundamental analysis, Gartner Inc. has mixed fundamental signals relative to the Services sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Gartner Inc. Balance Sheet: IT Debt, Cash & Liquidity
IT Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Gartner Inc.'s revenue has grown significantly by 37% over the 5-year period, indicating strong business expansion. The most recent EPS of $11.08 reflects profitable operations.
IT Revenue Growth, EPS Growth & YoY Performance
IT Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $1.5B | $35.4M | $0.47 |
| Q2 2025 | $1.6B | $210.5M | $2.93 |
| Q1 2025 | $1.5B | $210.5M | $2.67 |
| Q3 2024 | $1.4B | $180.0M | $2.26 |
| Q2 2024 | $1.5B | $198.0M | $2.48 |
| Q1 2024 | $1.4B | $210.5M | $2.67 |
| Q3 2023 | $1.3B | $172.5M | $2.17 |
| Q2 2023 | $1.4B | $172.5M | $2.48 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Gartner Inc. Dividends, Buybacks & Capital Allocation
IT SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Gartner Inc. (CIK: 0000749251)
📋 Recent SEC Filings
❓ Frequently Asked Questions about IT
What is the AI rating for IT?
Gartner Inc. (IT) has a Combined AI Rating of HOLD from Claude (HOLD) and ChatGPT (HOLD) with 72% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are IT's key strengths?
Claude: Strong gross margin of 68.8% indicates pricing power and efficient cost structure in core consulting and research services. Exceptional free cash flow generation of $1.3B (19.9% FCF margin) demonstrates ability to convert revenue to cash despite earnings pressure. ChatGPT: High-margin business model with 68.8% gross margin and 15.8% operating margin. Strong cash generation, with $1.29B operating cash flow and 19.9% FCF margin.
What are the risks of investing in IT?
Claude: Severe net income decline of 41.8% YoY despite modest revenue growth suggests operational challenges, cost inflation, or one-time charges impacting profitability. Highly leveraged balance sheet with 9.3x debt-to-equity ratio and $3.0B long-term debt against only $319.9M stockholders equity creates financial fragility. ChatGPT: Net income fell 41.8% YoY and diluted EPS fell 39.7%, signaling meaningful earnings pressure. Very high debt-to-equity of 9.30x and minimal equity base increase balance sheet risk.
What is IT's revenue and growth?
Gartner Inc. reported revenue of $6.5B.
Does IT pay dividends?
Gartner Inc. does not currently pay dividends.
Where can I find IT SEC filings?
Official SEC filings for Gartner Inc. (CIK: 0000749251) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is IT's EPS?
Gartner Inc. has a diluted EPS of $9.65.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is IT a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Gartner Inc. has a HOLD rating with 72% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is IT stock overvalued or undervalued?
Valuation metrics for IT: ROE of 228.0% (sector avg: 16%), net margin of 11.2% (sector avg: 10%). Higher ROE suggests strong returns relative to peers.
Should I buy IT stock in 2026?
Our dual AI analysis gives Gartner Inc. a combined HOLD rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is IT's free cash flow?
Gartner Inc.'s operating cash flow is $1.3B, with capital expenditures of N/A. FCF margin is 19.9%.
How does IT compare to other Services stocks?
Vs Services sector averages: Net margin 11.2% (avg: 10%), ROE 228.0% (avg: 16%), current ratio 1.00 (avg: 1.5).
Is Gartner Inc. carrying too much debt?
IT has a debt-to-equity ratio of 9.30x, which is above the Services sector average of 0.7x. Combined with a current ratio below 1, this warrants careful monitoring of the balance sheet.
Why is IT's return on equity (ROE) so high?
Gartner Inc. has a return on equity of 228.0%, significantly above the Services sector average of 16%. A high ROE indicates the company is efficient at generating profits from shareholder equity. This is supported by a 11.2% net margin.