One-glance verdict
Undervalued
$359.88 our estimate vs market $195.46
Wall Street consensus: $185.15 (-48.6% lower than our fair-value estimate)
46% below our estimate, below the bear case
Fundamentals snapshot
Gartner, Inc.
IT · NYQ · Technology · Information Technology Services
Current price
$195.46
52-week range
$124.25 - $265.85
Market cap
$12.34B
Balance sheet
Distressed
9.38x Adequate
Net debt $1.84B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
0 Risks
3 rewards · 0 risks
- Reward Returns 113.6% on equity, ahead of 80% of its peers.
- Reward Free cash flow was positive in 10/10 years.
- Reward Trades at 17.6x P/E vs peer median 17.8x (1.0% cheaper).
What this company does
Gartner, Inc.
Gartner is a research and advisory company that makes most of its money by selling subscriptions for expert advice to other businesses, which creates predictable recurring revenue (income that comes in regularly, like a magazine subscription). Companies rely on Gartner's insights to help them make big, expensive decisions, especially around technology, like what new software to buy. This matters because Gartner has become a trusted guide for many of the world's largest organizations as they navigate complex changes.
How the company got here
Gartner was founded in 1979 by Gideon Gartner, who formerly worked at IBM. The company started by providing research and analysis about the information technology (IT) industry to companies that were buying and selling computer hardware. It became well-known for creating influential research tools, like the "Magic Quadrant," which is a graph that shows how different technology vendors are competing in a specific market. After a series of ownership changes and acquisitions of other research firms, Gartner expanded its focus beyond just IT to advise leaders in other corporate functions like HR, finance, and supply chain.
What it actually does
Gartner is a research and advisory company that helps business leaders make informed decisions. Think of it as a trusted expert that large companies, government agencies, and technology firms pay for advice on their most important priorities. They provide this advice through detailed reports, one-on-one access to experts, conferences, and consulting projects. For example, a company trying to choose a new software system might use Gartner's research to see which vendors are the best, or a Chief Information Officer (CIO) might attend a Gartner conference to learn about the latest cybersecurity trends.
Research
This is Gartner's largest and most important business, making up the vast majority of its revenue. Companies pay a subscription fee for access to Gartner's extensive library of expert reports, data, and tools. This subscription also allows their employees to speak directly with Gartner's analysts (the experts who study specific markets) to get personalized advice. The goal is to provide business leaders with objective insights they can trust to make smarter, faster decisions on critical priorities.
Conferences
Gartner organizes events where executives and other professionals can gather to learn, network, and share ideas. These conferences are focused on specific topics or roles, such as cybersecurity or supply chain management. Companies pay for their employees to attend, and technology vendors also pay to exhibit their products and services to this influential audience. This segment provides a high-value meeting point for industry leaders and is a significant, though smaller, part of Gartner's business.
Consulting
This part of the business provides hands-on, customized support to help senior executives with specific, technology-related projects. Unlike the subscription-based research, consulting projects are tailored to solve a particular company's challenge, such as optimizing their IT costs or managing a digital transformation (a major shift in how the company uses technology). This segment offers more direct, on-the-ground support and helps deepen relationships with clients by turning research insights into actionable plans.
What management is betting on now
Gartner's strategy focuses on expanding its role as an indispensable partner to leaders across all major functions of a company, not just in technology. A key priority is to help organizations navigate major trends like digital transformation and the adoption of artificial intelligence (AI). They are also focused on growing their subscription-based revenue, which provides a predictable stream of income. By continuously developing new research and tools, Gartner aims to embed its insights deeper into the decision-making processes of the world's largest organizations.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$565.00M
FY2024 Q4
$311.41M
FY2025 Q1
$287.94M
FY2025 Q2
$347.32M
FY2025 Q3
$269.25M
FY2025 Q4
$270.71M
FY2026 Q1
$370.62M
FY2026 Q2
$378.37M
Revenue
$1.68B
Net income
$275.50M
Diluted EPS
4.14
Operating cash flow
$398.29M
Free cash flow
$378.37M
Fetching…
Sources
Revenue
$1.51B
Net income
$222.34M
Diluted EPS
3.18
Operating cash flow
$391.04M
Free cash flow
$370.62M
Fetching…
Sources
Revenue
$1.75B
Net income
$242.15M
Diluted EPS
3.36
Operating cash flow
$294.54M
Free cash flow
$270.71M
Fetching…
Sources
Revenue
$1.52B
Net income
$35.36M
Diluted EPS
0.47
Operating cash flow
$298.74M
Free cash flow
$269.25M
Fetching…
Sources
Revenue
$1.69B
Net income
$240.78M
Diluted EPS
3.11
Operating cash flow
$383.56M
Free cash flow
$347.32M
Fetching…
Sources
Revenue
$1.53B
Net income
$210.94M
Diluted EPS
2.71
Operating cash flow
$313.51M
Free cash flow
$287.94M
Fetching…
Sources
Revenue
$1.72B
Net income
$398.57M
Diluted EPS
5.08
Operating cash flow
$335.36M
Free cash flow
$311.41M
Fetching…
Sources
Revenue
$1.48B
Net income
$415.05M
Diluted EPS
5.32
Operating cash flow
$590.77M
Free cash flow
$565.00M
Fetching…
Sources
Is it cheap or expensive?
Fair value $359.88 vs current price $195.46
Wall Street consensus is the average analyst price target: $185.15 (-48.6% lower than our fair-value estimate).
Our most-likely fair value is $359.88 a share — about 84.1% above today's price of $195.46, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Distressed
Net debt $1.8B. Interest coverage 9.4x.
Net debt
$1.84B
Interest coverage
9.38x
Gartner, Inc.'s profit covers its interest bill about 9.4 times over. which is stronger than most peers shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Distressed
Worse cushion
Baseline
Better cushion
IT
BASELINE
Gartner, Inc.
Total debt $3.33B Interest coverage 9.38x This is the baseline the peer rows are being compared against.
Total debt $63.99M Interest coverage 0.73x -92% vs IT Carries about 12.9x less debt cushion than IT.
Total debt $1.57B Interest coverage 13.29x +42% vs IT Carries about 1.4x more debt cushion than IT.
Total debt $4.62B Interest coverage 7.86x -16% vs IT Carries about 1.2x less debt cushion than IT.
Total debt $2.09B Interest coverage 89.92x +858% vs IT Carries about 9.6x more debt cushion than IT.
Total debt $923.00M Interest coverage 87.00x +827% vs IT Carries about 9.3x more debt cushion than IT.
What you should know
The case for and against IT
3 Rewards
0 Risks
Rewards
-
Returns 113.6% on equity, ahead of 80% of its peers.
-
Free cash flow was positive in 10/10 years.
-
Trades at 17.6x P/E vs peer median 17.8x (1.0% cheaper).
Risks
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
17.59x
Forward P/E
11.95x
P/B
-75.23x
P/S
1.91x
EV/EBITDA
9.85x
PEG ratio
0.76x
Profitability
How much profit each dollar creates
Gross margin
69.6%
Operating margin
22.6%
Net margin
12.0%
ROE
113.6%
ROA
10.2%
Health
Liquidity and balance-sheet strength
Debt / equity
—
Current ratio
0.88x
Quick ratio
0.75x
Total debt
$3.33B
Total cash
$1.49B
Growth
How the business has been compounding
Revenue TTM
$6.46B
Revenue 5Y CAGR
8.2%
EPS TTM
11.11
EPS 5Y CAGR
-1.0%
Cash flow
How much cash the business throws off
Operating CF TTM
$1.38B
Free CF TTM
$1.18B
FCF margin
18.2%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
1999-07-19