GARTNER INC (IT) AI Stock Summary
Profitable with slowing growth
Updated
Snapshot
Gartner is a profitable large-cap research firm with slowing top-line growth but healthy margins. FY 2025 revenue reached $6.50B (up 3.7% YoY), generating $1.18B in free cash flow. While gross margins remain strong at 67.7%, net income fell to $729.2M from $1.25B the prior year. The balance sheet holds $3.62B in debt against $1.72B in cash, but the company is actively reducing its share count through buybacks.
What's Happening Right Now
- Tue 4th Aug '26 · Earnings: Gartner reported Q2 2026 revenue of $1.7 billion, up 2.8% on an adjusted basis, and raised full-year guidance for profit and cash flow.
- Tue 4th Aug '26 · Investigation: Bernstein Liebhard LLP announced an investigation into potential breaches of fiduciary duty by Gartner directors and officers.
- Tue 19th May '26 · Forecast: Gartner forecasts worldwide AI spending to grow 47% in 2026, totaling $2.59 trillion.
- Mon 18th May '26 · Lawsuit: The Schall Law Firm reminded investors of a class action lawsuit deadline for securities fraud claims related to the period between February 2025 and February 2026.
Bottom Line
Gartner is a financially healthy business that produces strong cash flow, but its growth rate is decelerating. The stock trades NEAR the 52-week HIGH and above analyst targets, suggesting optimism is already priced in. Investors should consider the rising short interest and ongoing shareholder lawsuits alongside the solid earnings beat and share repurchases.