Gartner (IT) Stock Forecast & Price Target

Gartner Inc. has demonstrated strong financial growth, with shares having increased by 52% between 2017 and 2019, and 58% between 2004 and 2008, indicating a consistent upward trajectory in shareholder value. The company has successfully expanded its Insights revenue through strategic pricing and increased license penetration, contributing to an average annual consolidated contribution margin expansion of approximately 70 basis points since 2009. Additionally, the Insights segment, which now accounts for 82% of total revenue compared to 66% in 2009, has played a significant role in driving a 10% compound annual growth rate in Consulting revenues over the past five years, underscoring the strength of Gartner's business model.

Gartner Inc. has experienced a decline in its wallet retention rate, falling to 101% in Q1 2024 from 104% in the prior-year, indicating reduced spending from existing clients in its primary Research segment. Additionally, the company's adjusted EBITDA margin is projected to decrease to 23.5% for FY25, down from 24.8% for FY24, reflecting ongoing cost challenges and hiring plans that may hinder profitability. Furthermore, the Consulting segment faces significant headwinds, evidenced by a sharp decline in federal contract values from $275 million in Q4 2024 to $200 million in Q2 2025 due to tightened procurement processes under government efficiency initiatives.