NYSEInformation TechnologyInformation Technology ServicesSnapshot 2026-08-31
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Create your account →Broken: Primary pillar broken — Contract Value grows at least 3% YoY FX neutral: rev -0.6% vs 3% target.
Gartner grows free cash flow strongly, up 28.7% in Q1 2026 to $371M. The company repurchased $535M of stock in Q1, showing strong capital return. Contract Value rose 1.0% YoY, supporting growth. Earnings beats and raised guidance back a solid outlook.
AI risks could reduce SaaS spending, threatening Gartner's growth. Contract Value growth is slow at 1.0% YoY. The recent 21.6% share price drop signals market concerns. Revenue declined 1.5% YoY in Q1 2026, showing demand pressure.
The price is about 43% below our fair value near $246, reflecting a cheap valuation. Analysts expect modest 2.5% revenue growth, which aligns with current cautious outlook. Our fair value is well above the Street median, showing upside if growth improves.
Breaks if: contract value growth falls below 1% YoY FX neutral
Breaks if: free cash flow falls below $1.3 billion in FY26
Gartner aims to increase its full-year free cash flow guidance.
Breaks if: annual share repurchases fall below $1.5 billion
Gartner continues to authorize share repurchases to enhance shareholder value.
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This is a long-term thesis on a company that shows strong recent financial performance but operates in a challenging sector backdrop. The current state reflects a commitment to growth and shareholder value through share repurchases and increased guidance.
The market appears to price IT as cheap compared to its peers, indicating that expectations are somewhat low. There is a slight gap in expectations, suggesting that while the stock is not overly expensive, it is not fully reflecting the potential for growth either.
Management has consistently focused on accelerating contract value growth and increasing adjusted EBITDA, EPS, and free cash flow. Recent results show strong growth in these areas, although there is a near-term risk of missing expectations given the recent history of industry peers.
The thesis hinges on the performance of sector bellwethers like IBM, ACN, and CTSH, which could influence IT's momentum. A reversal in guidance or poor performance from these companies could negatively impact IT, while continued strong results could support its growth trajectory.
Overall, IT's fundamentals are on track, but the company faces risks from the broader sector. The next few quarters will be critical in determining the direction of its growth. Not investment advice.
The most important moves since the prior daily snapshot.
Yes, our read has strengthened. The latest earnings beat supports increased full-year guidance for Adjusted EBITDA and EPS. Improved free cash flow guidance further enhances confidence in the company's performance.
as of 2026-08-31
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
