Gartner (IT) Stock Forecast & Price Target

Gartner Inc. has demonstrated strong revenue growth, with its Insights segment now representing 82% of total revenue, an increase from 66% in 2009, reflecting a favorable shift toward higher-margin offerings. The company has achieved an impressive CAGR of 10% in Consulting revenues over the past five years, indicating robust demand for its consulting services. Additionally, Gartner's consolidated contribution margin has expanded by an average of approximately 70 basis points annually since 2009, underscoring the firm's operational efficiency and profitability improvements.

Gartner Inc. faces a negative outlook primarily due to a decline in wallet retention rate, which fell to 101% in Q1 2024 from 104% in the previous year, indicating reduced spending by existing clients. Additionally, the company's adjusted EBITDA margins are projected to decrease from 24.8% in FY24 to 23.5% in FY25, revealing potential operational and profitability pressures. Moreover, the Consulting segment has shown a history of revenue declines, exemplified by the drop in Federal Insights contract values from $275 million in 4Q24 to $200 million in 2Q25, reflecting external challenges in government procurement processes.