The heavy selling pressure might have exhausted for Gartner (IT) as it is technically in oversold territory now. In addition to this technical measure, strong agreement among Wall Street analysts in revising earnings estimates higher indicates that the stock is ripe for a trend reversal.
IT is expected to post second-quarter 2025 revenues of $1.7B and EPS of $3.37, fueled by strong segment growth and cost control.
Gartner (IT) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Gartner's high retention research subscriptions drive stable cash flow and margins, supporting a resilient business model with predictable revenue. Shares trade at a forward P/E 27% below the 5-year average, despite consistent growth and business fundamentals, signaling undervaluation. Active share buybacks accelerate EPS growth and support the stock price, with management prioritizing capital returns over dividends.
Gartner (IT) reported earnings 30 days ago. What's next for the stock?
Despite recent share price decline, I maintain a buy rating on Gartner due to resilient 1Q25 results and strong underlying fundamentals. IT's key segments like Global Technology Sales and Global Business Sales show solid demand, indicating potential for future revenue growth. Federal headwinds are de-risking, and sales force expansion is on track, reinforcing confidence in growth acceleration into FY26.
Gartner, Inc. reported mixed Q1 results, with sales of $1.5B slightly missing estimates, but non-GAAP EPS beat expectations at $2.98 per share. Research remains the main revenue driver, with strong client retention and contribution margins, but federal contract renewals and tariffs pose risks. Despite a decline in NCVI, Gartner showed strong free cash flow growth and maintained a solid financial position with manageable debt levels.
An improved segmental performance benefits IT's top line in the first quarter of 2025.
Gartner, Inc. (NYSE:IT ) Q1 2025 Results Conference Call May 6, 2025 8:00 AM ET Company Participants David Cohen - Senior Vice President of Investor Relations Gene Hall - Chairman & Chief Executive Officer Craig Safian - Chief Financial Officer Conference Call Participants Jeffrey Meuler - Baird Toni Kaplan - Morgan Stanley George Tong - Goldman Sachs Joshua Chan - UBS Faiza Alwy - Deutsche Bank Jason Haas - Wells Fargo Andrew Nicholas - William Blair Jeff Silber - BMO Capital Markets David Cohen Good morning, everyone. Welcome to Gartner's First Quarter 2025 Earnings Call.
Although the revenue and EPS for Gartner (IT) give a sense of how its business performed in the quarter ended March 2025, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.
Gartner (IT) came out with quarterly earnings of $2.98 per share, beating the Zacks Consensus Estimate of $2.72 per share. This compares to earnings of $2.93 per share a year ago.
Gartner (IT) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.