Gartner Shares Slide as Analysts Cut Targets

Gartner, Inc. shares fell 4.7% during Tuesday’s session, with the stock trading as low as $154.97 before last changing hands at $158.52. The move came after a prior close of $166.39, adding to recent pressure on the information technology services provider.

Roughly 689,030 shares traded around mid-day, a 57% decline from Gartner’s average daily volume of 1,612,027 shares. The lower-than-usual activity accompanied the price drop, suggesting more muted investor participation during the session.

Several Wall Street firms revised their views on Gartner in early February, cutting price targets from previous levels. Deutsche Bank Aktiengesellschaft (DBKd) set a $204.00 target price in a report dated Wednesday, February 4.

Morgan Stanley (MS) reduced its price target from $275.00 to $200.00 and assigned an "equal weight" rating in a February 4 research note. Truist Financial lowered its price objective from $300.00 to $170.00 while maintaining a "buy" rating on February 6.

BMO Capital Markets reiterated a "market perform" rating on February 5, and The Goldman Sachs Group (GS) restated a "buy" rating with a $220.00 target on the same day. Overall, four analysts rate the stock a Buy, six a Hold, and two a Sell, for a consensus Hold and an average target price of $190.70.

Gartner last reported quarterly results on Tuesday, February 3. The company posted earnings per share of $3.94, topping the consensus estimate of $3.50 by $0.44. Return on equity was 102.20%, and net margin stood at 11.22%.

Revenue for the quarter was $1.75 billion, in line with analyst expectations and up 2.2% from the same period a year earlier. In the prior-year quarter, Gartner earned $5.45 per share, highlighting a year-over-year EPS decline despite the latest beat versus estimates.

Gartner has issued full-year 2026 guidance of 12.300- EPS, and as a group, analysts forecast the company will post 12.5 EPS for the current year.

Gartner has a market capitalization of $11.17 billion and trades at a price-to-earnings ratio of 16.44, with a PEG ratio of 1.69 and a beta of 1.08. The company’s debt-to-equity ratio is 9.30, while both its quick and current ratios stand at 1.00.

The stock’s 50-day simple moving average is $196.58, and its 200-day simple moving average is $226.94, indicating the latest close is below both medium- and longer-term trend levels.

Institutional investors hold 91.51% of Gartner shares. Recent disclosures show new or expanded positions by firms including Independent Franchise Partners LLP, Capital International Investors, J. Stern & Co. LLP, Norges Bank and Northwestern Mutual Wealth Management Co., with several of these stakes initiated or increased in the third and fourth quarters.

On the insider front, Director Stephen G. Pagliuca acquired 43,300 Gartner shares on Wednesday, December 10 at an average price of $229.57, for a total purchase value of $9,940,381. Following the transaction, he owned 111,613 shares, a 63.38% increase in his position. Corporate insiders collectively own 3.60% of the company.

Gartner, founded in 1979 and headquartered in Stamford, Connecticut, is a global research and advisory firm. It provides insights, advice and tools to leaders in IT, finance, human resources, customer service and other business functions through research reports, advisory services, consulting, executive programs and events.