Gartner (IT) Stock Forecast & Price Target

Gartner Inc has demonstrated robust financial growth, with shares increasing 52% between 2017 and 2019 and a notable 58% rise between 2004 and 2008. The company has successfully transitioned towards its higher-margin Insights segment, which now comprises 82% of total revenue, contributing to an average consolidated contribution margin expansion of approximately 70 basis points annually since 2009. Additionally, Gartner's Consulting revenues have experienced a compound annual growth rate (CAGR) of 10% over the past five years, reflecting the company's strategic focus on enhancing pricing and increasing license penetration among existing clients rather than solely pursuing new accounts.

Gartner Inc has experienced a decline in wallet retention rates, falling to 101% in Q1 2024 from 104% in the previous year, indicating reduced spending by existing clients. Additionally, the company has revised its adjusted EBITDA margin guidance for FY25 down to 23.5% from 24.8% in FY24, reflecting challenges in maintaining profitability amid increased operational costs and headcount growth. Moreover, significant reductions in Federal Insights contract values, from $275 million in 4Q24 to $200 million in 2Q25, further underscore the adverse impacts of tightening government procurement processes on revenue generation.