Gartner Shares Approach Critical Earnings Test

The upcoming quarterly report from IT research giant Gartner represents what may be the most significant financial disclosure of the year for the company. With shares having plummeted more than 50% since January, Tuesday’s earnings release could determine the stock’s future trajectory. Market participants remain deeply divided, with some seeing dramatic undervaluation while others anticipate further declines.

Analyst Consensus Shows Limited Optimism

Market researchers project modest third-quarter 2025 results, with expectations set at $2.52 in earnings per share alongside approximately $1.52 billion in revenue. The consulting division faces particular pressure with forecasts indicating a 13.1% contraction, while conference revenues are projected to shrink by a substantial 69.3%. Only the Business and Technology Insights segment demonstrates modest expansion.

These projections highlight the significant challenges confronting Gartner as corporate clients reduce IT consulting expenditures. Simultaneously, the emergence of generative artificial intelligence technologies threatens to disrupt traditional research services that have long formed the foundation of Gartner’s business model.

Valuation Methodologies Yield Conflicting Results

The debate surrounding Gartner’s appropriate valuation continues to intensify among market participants. Applying conservative discounted cash flow analysis produces a target of just $227 per share, while alternative methodologies suggest potential upside to $295. This wide discrepancy underscores the substantial uncertainty clouding the investment thesis.

Should investors sell immediately? Or is it worth buying Gartner?

Critical questions remain unanswered: Can the company’s proprietary “AskGartner” AI solution effectively reverse current trends? Or will technological evolution ultimately render Gartner’s established business model obsolete?

Expert Opinions Provide Little Clarity

Research analyst recommendations offer investors minimal directional guidance, with four firms advocating purchase positions, seven maintaining hold ratings, and two recommending divestment. Although the average price target of $328 implies substantial theoretical appreciation potential, significant doubts persist throughout the investment community.

The fundamental question remains whether Tuesday’s quarterly results will dispel market pessimism or accelerate the current downward trend. For current and prospective shareholders, the earnings announcement represents a pivotal moment that could redefine Gartner’s investment narrative for the foreseeable future.