📊 IT Key Takeaways
Is Gartner Inc. (IT) a Good Investment?
Gartner exhibits strong operational fundamentals with exceptional profitability margins (71.9% gross, 20.9% operating) and robust free cash flow generation ($391M, 25.9% margin), but severe balance sheet risks with extreme leverage (46.98x Debt/Equity), minimal equity base ($63.4M), and deteriorating earnings (-39.7% EPS YoY) create significant solvency concerns despite solid interest coverage.
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
- Exceptional gross margin of 71.9% and operating margin of 20.9% demonstrate strong pricing power and operational efficiency
- Robust free cash flow generation of $391M with 25.9% FCF margin provides financial flexibility despite high leverage
- Solid interest coverage ratio of 16.4x indicates ability to service debt obligations despite leveraged structure
- 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
- Extreme leverage with Debt/Equity ratio of 46.98x and stockholders' equity of only $63.4M creates critical solvency risk and limits financial flexibility
- Current ratio below 1.0 (0.94x) indicates potential short-term liquidity pressure despite $1.7B cash position
- Significant earnings deterioration with diluted EPS declining 39.7% YoY raises concerns about underlying business quality and growth trajectory
- 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
- Trend in revenue growth rate and operating margins - monitor for further deterioration
- Debt reduction progress and path to lower leverage ratios - equity base must strengthen
- Operating cash flow sustainability and conversion rates - critical given dividend/debt service obligations
- 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 25.9% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. 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 |
|---|---|---|---|
| Q1 2026 | $1.5B | $210.9M | $2.71 |
| 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 |
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 74% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are IT's key strengths?
Claude: Exceptional gross margin of 71.9% and operating margin of 20.9% demonstrate strong pricing power and operational efficiency. Robust free cash flow generation of $391M with 25.9% FCF margin provides financial flexibility despite high leverage. 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: Extreme leverage with Debt/Equity ratio of 46.98x and stockholders' equity of only $63.4M creates critical solvency risk and limits financial flexibility. Current ratio below 1.0 (0.94x) indicates potential short-term liquidity pressure despite $1.7B cash position. 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 $1.5B.
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 $3.18.
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 May 2026, Gartner Inc. has a HOLD rating with 74% 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 350.8% (sector avg: 16%), net margin of 14.7% (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 $391.0M, with capital expenditures of N/A. FCF margin is 25.9%.
How does IT compare to other Services stocks?
Vs Services sector averages: Net margin 14.7% (avg: 10%), ROE 350.8% (avg: 16%), current ratio 0.94 (avg: 1.5).
Is Gartner Inc. carrying too much debt?
IT has a debt-to-equity ratio of 46.98x, 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 350.8%, 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 14.7% net margin.