Key Takeaways:
- Gartner is executing a comprehensive strategy focused on proprietary business intelligence while expanding AI capabilities across its global executive client base.
- IT stock could reasonably reach $330/share by the end of 2027, based on our valuation assumptions.
- This implies a total return of 36% from today’s price of $243/share, with an annualized return of 14% over the next 2.4 years.
Gartner (IT) is establishing new benchmarks in the global business intelligence and technology research industry through a strategic focus on AI-enhanced insights while expanding monetization across its engaged executive customer base.
Gartner combines its core research expertise with emerging AI capabilities, including AskGartner, to capture the evolving needs of C-suite executives navigating digital transformation and technology adoption across industries worldwide.
The business intelligence leader serves over 80,000 executives globally through a comprehensive insights ecosystem spanning technology research, business consulting, and conferences.
This spans from core proprietary research through Gartner’s signature advisory services to emerging AI-powered tools that resonate with its executive client base seeking mission-critical guidance.
IT stock benefits from resilient momentum, delivering $1.7 billion in Q2 revenue, representing 6% year-over-year growth and achieving strong adjusted EPS of $3.53, up 10% from the prior year, with robust free cash flow of $347 million.
Gartner demonstrates clear execution across all segments with 68% total contribution margin, up 70 basis points, and continued contract value growth of 5% despite challenging macroeconomic headwinds from federal government spending changes and tariff-affected industries.
Gartner’s strategic transformation under CEO Gene Hall focuses on delivering high-value proprietary insights that provide long-term client value while building sustainable AI-enhanced platforms across research, consulting, and conferences for its increasingly global executive customer base.
With initiatives including the AskGartner AI tool rollout, providing faster access to insights, 50+ internal AI applications improving productivity, and strong double-digit pipeline growth in both Global Technology Sales and Global Business Sales, Gartner continues building comprehensive platform leadership in business intelligence.
With Q2 results showing sustained profitability and margin expansion while maintaining strong client engagement, IT stock is positioned for continued expansion as the AI strategy drives long-term value creation and the company navigates back to double-digit growth.
Here’s why IT stock could deliver solid returns through 2027 as it captures the global business intelligence market opportunity and scales AI-enhanced capabilities.
See analysts’ full growth forecasts and estimates for Gartner (It’s free) >>>
What the Model Says for Gartner Stock
We analyzed the upside potential for IT stock using valuation assumptions based on its proprietary data advantages and expanding AI-enhanced service opportunity across global business intelligence markets.
Analysts see a significant opportunity ahead for Gartner stock given its unique proprietary data positioning, successful AI tool development, and systematic approach to building sustainable client relationships while maintaining industry-leading executive engagement and retention rates.
Gartner’s diversified business intelligence strategy provides multiple growth vectors. At the same time, its AI focus validates that strong execution can drive market differentiation and client value creation in the competitive global research and advisory landscape.
Based on estimates of 5% annual revenue growth, 19% operating margins, and a normalized P/E valuation multiple of 20x, the model projects IT stock could rise from $243/share to $330/share.
That would be a 36% total return, or a 14% annualized return over the next 2.4 years.
Value Gartner with TIKR’s Valuation Model today for FREE (Find undervalued stocks fast) >>>
Our Valuation Assumptions
TIKR’s Valuation Model lets you plug in your own assumptions for a company’s revenue growth, operating margins, and P/E multiple, and calculates the stock’s expected returns.
Here’s what we used for IT stock:
1. Revenue Growth: 5%
Gartner delivered a solid Q2 performance with revenue rising 6% year-over-year despite challenging macroeconomic conditions, while achieving strong margins and sustained profitability across key business segments, including Insights, Conferences, and Consulting.
Growth was driven by the Business and Technology Insights segment resilience with subscription revenue growth of 5%, strong conference performance up 14% year-over-year, and consulting revenue expansion of 9%, supported by robust client demand for AI guidance and cost optimization expertise.
We used a 5.1% forecast reflecting Gartner’s proven resilience and clear path back to double-digit growth through operational improvements, federal government normalization, and tech vendor recovery while building sustainable competitive advantages.
2. Operating Margins: 19%
Gartner achieved strong adjusted EBITDA margin performance with disciplined expense management and operational efficiency, demonstrating a successful balance between profitability and strategic investments in AI capabilities and global expansion.
Focus on operational efficiency through proprietary data leverage and AI-enhanced productivity supports margin expansion while funding product innovation, AskGartner development, and sales force optimization initiatives across global markets.
Management targets sustainable long-term margin improvement while investing in strategic growth areas, reflecting disciplined capital allocation balancing profitability with market leadership and competitive positioning in business intelligence and advisory services.
3. Exit P/E Multiple: 20x
IT stock trades at reasonable multiples reflecting the company’s unique market position and expanding addressable market opportunity across global business intelligence and technology advisory segments.
We maintain conservative valuation levels given Gartner’s competitive data advantages, proven execution in client retention and engagement, and systematic approach to building sustainable competitive advantages through proprietary research capabilities and AI enhancement.
Long-term competitive advantages from proprietary data positioning, comprehensive client relationships, and operational scale should support reasonable valuations as execution demonstrates sustained profitability growth and market leadership across business intelligence trends.
Build your own Valuation Model to value any stock (It’s free!) >>>
What Happens If Things Go Better or Worse?
Different scenarios for Gartner stock through 2030 show varied outcomes based on execution and global business intelligence market expansion success: (these are estimates, not guaranteed returns):
- Low Case: Slower AI adoption and prolonged macro headwinds → 9% annual returns
- Mid Case: Successful AI strategy and return to double-digit growth → 14% annual returns
- High Case: Strong growth across all segments and market leadership → 20% annual returns
Even in the conservative case, Gartner stock offers attractive returns supported by the company’s unique proprietary data positioning and proven ability to maintain high client retention and engagement in its specialized executive advisory market.
The upside scenario for IT stock could deliver exceptional performance if Gartner successfully captures expanded AI opportunities and maintains market leadership through continued innovation and client value creation across its comprehensive business intelligence platform.
See analysts’ growth forecasts and price targets for any stock (It’s free!) >>>
Wall Street Analysts Are Bullish on These 5 Undervalued Compounders With Market-Beating Potential
TIKR just released a new free report on 5 compounders that appear undervalued, have beaten the market in the past, and could continue to outperform on a 1-5 year timeline based on analysts’ estimates.
Inside, you’ll get a breakdown of 5 high-quality businesses with:
- Strong revenue growth and durable competitive advantages
- Attractive valuations based on forward earnings and expected earnings growth
- Long-term upside potential backed by analyst forecasts and TIKR’s valuation models
These are the kinds of stocks that can deliver massive long-term returns, especially if you catch them while they’re still trading at a discount.
Whether you’re a long-term investor or just looking for great businesses trading below fair value, this report will help you zero in on high-upside opportunities.
Click here to sign up for TIKR and get our full report on 5 undervalued compounders completely free.
Looking for New Opportunities?
- See what stocks billionaire investors are buying so you can follow the smart money.
- Analyze stocks in as little as 5 minutes with TIKR’s all-in-one, easy-to-use platform.
- The more rocks you overturn… the more opportunities you’ll uncover. Search 100K+ global stocks, global top investor holdings, and more with TIKR.
Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
