Gartner screens compellingly cheap on a forward price-to-earnings multiple of 9.3x with a PEG of 0.58 and converts cash at 144% of net income, but revenue is declining and the Rule of 40 stands at only 15 — and the stock is in a full falling-knife setup with a death cross, price below all moving averages, and a failed momentum gate — leaving the valuation case dependent on a trend reversal that has not yet begun.
Thesis pillars
- Declining Revenue Rule Of 40 Failure→Stable
- Subscription Concentration Revenue Cliff→Stable
- Attractive Valuation Strong Cash Conversion→Stable
- +1 more pillar — see the Why tab for full reasoning
Gartner, Inc. (IT) Stock Analysis
Falling Knife setup
Technology · Information Technology Services
Sell if holding. At $136.32, A.R:R 0.5:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Thin upside margin: 5.3%; Concentration risk — Product: subscription-based insights products (78.0%).
Gartner delivers research, advisory, and consulting services to over 13,000 enterprises in approximately 90 countries through three segments: Business and Technology Insights, Conferences, and Consulting. Subscription products accounted for approximately 78% of 2025 revenues;... Read more
Sell if holding. At $136.32, A.R:R 0.5:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Thin upside margin: 5.3%; Concentration risk — Product: subscription-based insights products (78.0%). Chart setup: Death cross, below all MAs, RSI 38, MACD bearish. Score 5.3/10, high confidence.
Passes 6/9 gates (clean insider activity, no SEC red flags, news events none recent, earnings proximity 32d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and favorable risk/reward ratio and death cross (50MA < 200MA). Suitability: speculative.
About Gartner, Inc.
About Gartner, Inc.
Gartner's subscription-based Business and Technology Insights segment generated approximately 78% of 2025 total revenues, with Consulting contributing roughly 9% and Conferences the remainder, across more than 13,000 enterprises in approximately 90 countries. Experts logged more than 510,000 direct client interactions in 2025; 53 in-person conferences drew more than 83,000 attendees including 12 Symposium/Xpo events. Gartner employed 20,244 people globally at December 31, 2025, with more than 2,400 business and technology experts located in more than 30 countries.
Gartner earns subscription revenue through Insights contracts typically structured as 12-month or longer commitments, with 77% of contracts multi-year at December 31, 2025 and a client retention rate of 85% in 2025 (84% in 2024). Within Insights, Global Technology Sales (GTS) targets technology users and providers while Global Business Sales (GBS) serves HR, supply chain, finance, and marketing leaders. Consulting engagements are project-based and non-recurring, and contract-optimization sub-practice revenue fluctuates significantly period to period. Conferences are event-driven and exposed to macroeconomic disruptions; the company's conference insurance explicitly excludes cancellations due to communicable diseases. In August 2025, Gartner launched AskGartner, a tool giving subscription clients faster access to research content. On February 5, 2026, the company completed the sale of Digital Markets for approximately $110.0 million.
Show full overview
Gartner's Insights subscription model faces a structural challenge from AI chatbots and large language models that may provide substantive answers directly to users, potentially reducing the need to visit Gartner portals. The 10-K acknowledges that search engines and LLMs update algorithms in ways that may reduce traffic to Gartner websites, and that chatbots may draw on Gartner content without directing users to the site. A $150.0 million goodwill impairment was recognized in the Digital Markets reporting unit during 2025, ahead of the February 2026 divestiture. Client retention of 85% in 2025 provides a near-term floor, but multi-year contracts subject to renewal and the competitive pressure of AI-generated content introduce ongoing execution risk.
See also: Technology · Information Technology Services
From Gartner, Inc.'s most recent 10-K filing, extracted June 10, 2026.
Recent developments
updated 2026-07-06Recent Developments — Gartner, Inc.
Latest news
- NEWS IT Q1 Deep Dive: Gartner Maintains Margins Amid Flat Demand and Geopolitical Headwinds - StockStory — StockStory neutral
- NEWS Don't toss it — Stock the shop! - LSU — LSU neutral
- NEWS Lost Money on Gartner, Inc. (IT)? Join Class Action Suit Seeking Recovery - Contact The Gross Law Firm - PR Newswire — PR Newswire negative
- NEWS Lost Money on Gartner, Inc. (IT)? Join Class Action Suit Seeking Recovery - Contact The Gross Law Firm - Morningstar — Morningstar negative
- NEWS Gartner (NYSE:IT) Reports Q1 CY2026 In Line With Expectations - StockStory — StockStory neutral
Generated 2026-07-06T05:40:27Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- HIGHProductsubscription-based insights products78%10-K Item 1A: 'subscription-based insights products and services ... constituted approximately 78% and 77% of total revenues from our operations for 2025 and 2024, respectively'
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
Show full disclosure ▾Hide full disclosure ▴
About TrendMatrix. TrendMatrix is a publisher of general securities research and market commentary. We publish on a regular schedule. All content is the same for every subscriber in a tier — we do not provide personalized investment advice and we do not take into account any individual subscriber's financial situation, investment objectives, risk tolerance, tax situation, or holdings.
Not investment advice. TrendMatrix is not a registered investment adviser. Our content is for informational and educational purposes only. Consult your own licensed investment adviser, broker, or tax professional before making any investment decision.
Conflicts and positions. The TrendMatrix editorial team frequently holds personal long-term positions in securities discussed. We disclose positions held at the time of publication on each piece. We maintain a trading-window policy: we do not initiate or close positions in the same direction as a TrendMatrix publication within 24 hours before or 72 hours after publication.
No paid promotion. TrendMatrix does not accept payment from any issuer, broker, or third party in exchange for coverage of any security. Our sole compensation is subscription revenue.
No fiduciary duty. No fiduciary, advisory, or agency relationship is created between you and TrendMatrix by reading our content or subscribing to our service.
Performance. Past performance is not indicative of future results. Performance figures reflect the published model only and do not reflect any individual subscriber's actual results.
Rating Breakdown
3 floor-breakers
Price action weak — below key moving averages, no momentum carry. Needs a base before trend-continuation setups apply.static
Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static
Revenue shrinking — -1.5% YoY. Growth thesis broken unless recovery story develops.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. At $136.32, A.R:R 0.5:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Thin upside margin: 5.3%; Concentration risk — Product: subscription-based insights products (78.0%). Chart setup: Death cross, below all MAs, RSI 38, MACD bearish. Prior stop was $126.78. Score 5.3/10, high confidence.
Take-profit target: $143.55 (+5.3% upside). Prior stop was $126.78. Stop-loss: $126.78.
Concentration risk — Product: subscription-based insights products (78.0%); Thin upside margin: 5.3%; Leverage penalty (D/E 52.9): -1.5.
Gartner, Inc. trades at a P/E of 13.5 (forward 8.9). TrendMatrix value score: 8.3/10. Verdict: Sell.
25 analysts cover IT with a consensus score of 3.6/5. Average price target: $165.
What does Gartner, Inc. do?Gartner delivers research, advisory, and consulting services to over 13,000 enterprises in approximately 90 countries...
Gartner delivers research, advisory, and consulting services to over 13,000 enterprises in approximately 90 countries through three segments: Business and Technology Insights, Conferences, and Consulting. Subscription products accounted for approximately 78% of 2025 revenues; 77% of contracts were multi-year at December 31, 2025, with an 85% client retention rate.