Gartner (IT)
NYSEInformation TechnologyInformation Technology ServicesSnapshot 2026-07-07
$140.76+4.18%
Close 2026-07-07 · 1-day change
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Track IT free→Gartner grows free cash flow strongly, up 28.7% in Q1 2026 to $371M. The company repurchased $535M of stock in Q1, showing strong capital return. Contract Value rose 1.0% YoY, supporting growth. Earnings beats and raised guidance back a solid outlook.
AI risks could reduce SaaS spending, threatening Gartner's growth. Contract Value growth is slow at 1.0% YoY. The recent 21.6% share price drop signals market concerns. Revenue declined 1.5% YoY in Q1 2026, showing demand pressure.
The price is about 43% below our fair value near $246, reflecting a cheap valuation. Analysts expect modest 2.5% revenue growth, which aligns with current cautious outlook. Our fair value is well above the Street median, showing upside if growth improves.
Breaks if: contract value growth falls below 1% YoY FX neutral
Gartner anticipates an acceleration in Contract Value (CV) throughout 2026.
Stated in 2 of last 2 quarters. Contract Value reached $5.3 billion in 2026-Q1, a 1.0% YoY increase FX Neutral. The trajectory shows limited progress towards the anticipated acceleration in 2026.
Standing thesis, reviewed periodically — not a price target or advice.
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“CEO: 'Contract Value accelerated in the quarter.'”
“Looking ahead, we expect CV to accelerate throughout 2026.”
Breaks if: free cash flow falls below $1.3 billion in FY26
Gartner aims to increase its full-year free cash flow guidance.
Stated in 2 of last 2 quarters. Free cash flow increased 28.7% from $288M in 2025-Q1 to $371M in 2026-Q1, indicating progress towards the increased guidance. The trajectory is delivering on the stated priority.
“CEO: 'We increased our full year Adjusted EBITDA excluding divested operation, Adjusted EPS, and free cash flow guidance.'”
“Looking ahead, we expect CV to accelerate throughout 2026.”
Breaks if: annual share repurchases fall below $1.5 billion
Gartner continues to authorize share repurchases to enhance shareholder value.
Stated in 2 of last 2 quarters. Gartner repurchased $535 million of stock in 2026-Q1, reflecting active capital allocation towards share repurchases. The trajectory aligns with the stated priority of enhancing shareholder value.
“CEO: 'We repurchased $535 million of stock in the quarter, as our capital allocation continues to create value for our shareholders.'”
“Share Repurchase Authorization On January 29, 2026.”