Gartner (IT) Stock Forecast & Price Target

Gartner Inc. has demonstrated significant financial growth, with shares increasing 52% between 2017 and 2019 and 58% between 2004 and 2008, reflecting strong investor confidence. The company's shift towards the higher-margin Insights segment has proven beneficial, as this segment now accounts for 82% of total revenue, compared to 66% in 2009, driving an estimated 10% CAGR in Consulting revenues over the past five years. Furthermore, Gartner's consolidated contribution margin has consistently expanded, averaging approximately 70 basis points annually since 2009, highlighting operational efficiency and profitability.

Gartner Inc. is experiencing a decline in financial performance, evidenced by a decrease in wallet retention rates from 104% in Q1 2023 to 101% in Q1 2024, largely driven by reduced spending from existing clients. Additionally, the company's adjusted EBITDA margin is projected to fall to 23.5% for FY25, down from 24.8% in FY24, amid increasing costs and challenging hiring plans. Furthermore, a notable decline in contract values within the Consulting segment, attributed to government efficiency programs, has negatively impacted revenue, with Federal Insights contract values dropping from $275 million in 4Q24 to $200 million in 2Q25.