Gartner (IT) Stock Forecast & Price Target

Gartner Inc. has demonstrated substantial revenue growth, particularly in its Insights segment, which now constitutes 82% of total revenue, reflecting a positive mix-shift toward higher-margin offerings. The company has consistently expanded its consolidated contribution margin by an average of approximately 70 basis points annually since 2009, indicating enhanced operational efficiency and profitability. Additionally, the Consulting segment has experienced a robust compound annual growth rate (CAGR) of 10% over the past five years, further strengthening Gartner's financial position and long-term outlook.

Gartner Inc.'s financial outlook has been negatively impacted by a decline in wallet retention rates, which fell to 101% in Q1 2024 from 104% in the same period the previous year, reflecting reduced spending by existing clients. Additionally, the company has lowered its guidance for adjusted EBITDA margins to 23.5% for FY25, compared to 24.8% in FY24, primarily due to increased costs associated with headcount and ongoing operational challenges. Furthermore, significant pressures from government efficiency programs have adversely affected contract values in the Consulting segment, leading to a drop from $275 million in Q4 2024 to $200 million in Q2 2025.