Shares of Gartner IT have had a decent run over the past month. The stock has risen 9.1% against the industry's 3% decline. The Zacks S&P 500 composite has gained 1.6% during the said time frame.
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IT has a Growth Score of B. This style score condenses key financial metrics to reflect a fair sense of the quality and sustainability of its growth.
The company’s second-quarter 2026 earnings are expected to increase 7.1% year over year. Earnings for 2026 and 2027 are projected to rise 4.1% and 15.5%, respectively, year over year.
Factors That Bode Well for IT
Gartner is benefiting from its wide range of products and services, especially data-driven insights, with low customer concentration, which reduces operating risks and gives it a competitive advantage over rivals.
The company’s business model utilizes the depth and breadth of intellectual capital to create and distribute research content. This content includes published reports, interactive tools, briefings, consulting, advisory services and conferences. This rich domain expertise and technology-related insight help clients make informed decisions.
Gartner continues to improve its digital platforms through innovations, such as its AI-powered AskGartner, which provides faster access to business and technology insights and generates in-depth summaries from its Business-as-a-Service library. The company is also improving its platforms to allow users to download PowerPoint presentations generated directly from their queries.
The company consistently generates shareholder value through share buybacks. It repurchased shares worth $1 billion, $600 million, $700 million and $2 billion in 2022, 2023, 2024 and 2025, respectively. These repurchases indicate the company’s confidence in its business and make the stock attractive to investors.
Key Risks to Watch
A significant portion of the company's operations is international, exposing it to foreign exchange-related risks. Fluctuations in the value of the U.S. dollar relative to foreign currencies such as the British pound, euro, Canadian dollar, Australian dollar and Japanese yen could impact the company's financial results.
Gartner's current ratio (a measure of liquidity) at the end of the first quarter of 2025 was 0.94, lower than the industry average of 1.15. A current ratio of less than 1 implies that the company might face trouble in covering its short-term obligations.
IT’s Zacks Rank & Stocks to Consider
Gartner carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
A couple of better-ranked stocks in the Business Services sector are Trane Technologies plc TT and TransUnion TRU.
Trane Technologies carries a Zacks Rank #2 (Buy) at present. It has a long-term earnings growth expectation of 14.6%.
TT delivered a trailing four-quarter earnings surprise of 2.7%, on average.
TransUnion also holds a Zacks Rank of 2 at present. It has a long-term earnings growth expectation of 13.5%.
TRU beat earnings estimates in each of the last four quarters, with an average surprise of 6.3%.
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Gartner, Inc. (IT): Free Stock Analysis Report
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TransUnion (TRU): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).