Gartner (IT) Stock Forecast & Price Target

Gartner Inc has demonstrated strong financial performance with its shares significantly increasing by 52% between 2017 and 2019, alongside a consistent expansion of its consolidated contribution margin by approximately 70 basis points annually since 2009. The company’s revenue composition has shifted favorably, with its Insights segment now accounting for 82% of total revenue, highlighting its focus on higher-margin offerings. Furthermore, Gartner has achieved a compound annual growth rate (CAGR) of 10% in Consulting revenues over the past five years, underscoring its successful revenue growth strategy driven by existing client relationships.

Gartner Inc has experienced a decline in its wallet retention rate, dropping to 101% in Q1 2024 from 104% in the previous year, primarily due to reduced spending by existing clients in its key Research segment. The company's guidance for FY25 reflects a decrease in adjusted EBITDA margins to 23.5%, down from 24.8% in FY24, indicating ongoing challenges in managing costs while attempting to invest for future growth. Furthermore, the Consulting segment has faced significant revenue pressures, exemplified by a drop in contract values from $275 million in Q4 2024 to $200 million in Q2 2025, largely attributed to the tightening of U.S. federal procurement processes.