Company Reports

Gartner is many IT professionals’ go-to source for the latest industry insights. With over 2,400 experts and 13,000 customers, the company’s size is significantly larger than its direct competitors, which leads to economies of scale. In the IT research and advisory world, providing comprehensive coverage across different areas of interest requires the company to assemble a team of experts that comes with fixed salary expenses. However, the marginal cost of delivering an extra copy of the research report to a new client is close to zero. Therefore, when a company like Gartner has amassed a large customer base that can effectively spread out its fixed costs, the unit economics would look more attractive than those of its smaller counterparts. Over the past five years, Gartner has established a consistent margin advantage of at least 10 percentage points relative to its next-largest competitor. We expect this trend to continue, given Gartner’s unparalleled scale in IT research and advisory.

Gartner's adjusted year-over-year revenue growth of 2% was in line with expectations. Agile cost savings lifted operating margin by 170 basis points sequentially to 22.6%, surpassing the 21% high-water mark Gartner recorded in 2023. Client engagement also improved meaningfully.

Gartner's first-quarter revenue contracted 4% year over year in constant currency. Insights segment revenue was flat, and consulting segment revenue was down 17%, following last year's digital marketing divestiture. Adjusted operating margin improved slightly to 24%.

Gartner is many IT professionals’ go-to source for the latest industry insights. With over 2,400 experts and 13,000 customers, the company’s size is significantly larger than its direct competitors, which leads to economies of scale. In the IT research and advisory world, providing comprehensive coverage across different areas of interest requires the company to assemble a team of experts that comes with fixed salary expenses. However, the marginal cost of delivering an extra copy of the research report to a new client is close to zero. Therefore, when a company like Gartner has amassed a large customer base that can effectively spread out its fixed costs, the unit economics would look more attractive than those of its smaller counterparts. Over the past five years, Gartner has established a consistent margin advantage of at least 10 percentage points relative to its next-largest competitor. We expect this trend to continue, given Gartner’s unparalleled scale in IT research and advisory.

Gartner's fourth-quarter revenue growth of 2% and operating margin of 19% met expectations. However, forward-looking metrics tell a different story: contract value was up only 1%, and the insights segment's wallet retention further slid to 98%. Shares were down 21% in trading on Feb. 3.

Gartner IT reported mixed results for the first quarter that were in line with our expectations. We are maintaining our fair value estimate.

We are raising our fair value uncertainty rating for Gartner IT to high from medium to account for the wide range of spending expectations in the information technology industry. The magnitude of the reduction in companies' IT spending budgets and lengthening sale cycles are key contributors to our wider margin-of-safety bands.

Gartner should be able to ride out the current economic downturn, thanks to a steady business model that is reinforced by an extensive research base and strong customer retention.

Gartner should be able to ride out the current economic downturn thanks to a steady business model that is reinforced by an extensive research base and strong customer retention.

On Thursday, Gartner IT announced third-quarter results that were slightly below our expectations. While management stressed that its two core operations--research and consulting services--remain solid, unfavorable foreign exchange rates and poor performance of its events business forced the company to lower its outlook for the rest of the year. We are reducing our fair value estimate.

We believe Gartner has good long-term prospects. Its independent market forecasts, analyses, and product reviews influence the decision-making process of business executives and information technology professionals. And the firm sports one of the characteristics we love to see in a business model--a negative cash-flow operating cycle--since it gets paid in advance for its services.

Gartner IT, a provider of independent IT research and consulting services, recently reported second-quarter results. Similar to the previous quarter, the strong results show that despite the current economic uncertainties, organizations remain attentive to their IT investments. We are leaving our current fair value estimate unchanged.

We believe Gartner has good long-term prospects. Its independent market forecasts, analyses, and product reviews influence the decision-making process of business executives and information technology professionals. And the firm sports one of the characteristics we love to see in a business model--a negative cash-flow operating cycle--since it gets paid in advance for its services.

Gartner IT, a provider of IT research and consulting services, recently reported fist-quarter results that exceeded our expectations. The company continues to impress us by the strong and consistent growth of its research operations. We are raising our fair value estimate after reviewing the quarterly results.

We believe Gartner has good long-term prospects. Its independent market forecasts, analyses, and product reviews influence the decision-making process of business executives and information technology professionals. And the firm sports one of the characteristics we love to see in a business model--a negative cash-flow operating cycle--since it gets paid in advance for its services.

Gartner IT, a provider of IT research and consulting services, recently reported fourth-quarter and full-year results that matched our expectations. Our fair value estimate remains unchanged.

Gartner's IT recent third-quarter results were in line with our expectations. We are leaving our fair value estimate unchanged.

We believe Gartner has good long-term prospects. Its independent market forecasts, analyses, and product reviews influence the decision-making process of business executives and information technology professionals. And the firm sports one of the characteristics we love to see in a business model: a negative cash-flow operating cycle, as it gets paid in advance for its services.