Gartner (IT) has put fresh numbers on the board for Q1 2026, reporting revenue of US$1.5b and basic EPS of US$3.19 off net income of US$222.3m, setting the tone for how you might think about the rest of the year. Over recent quarters the company has seen revenue move between US$1.5b and US$1.8b, while quarterly EPS has ranged from US$0.47 to US$5.14, providing a clear view of how earnings power has fluctuated into this latest print. With trailing net margins now sitting well below last year’s level, the quality and direction of profitability are central to how this result is likely to be read.

See our full analysis for Gartner.

With the headline figures on the table, the next step is to weigh these results against the prevailing stories about Gartner, highlighting where the numbers support the narrative and where they start to push against it.

Margins Reset From 20% To 11.2%

• Over the last 12 months, net profit margin is 11.2%, compared with 20% a year earlier on trailing revenue of about US$6.5b and net income of US$740.6m.
• Bears highlight that lower margins could signal pressure on Gartner's traditional advisory model, and the current figures give that view some backing:
  • The drop from a 20% margin to 11.2% lines up with concerns that higher operating costs and changing client behavior can squeeze profitability even when revenue stays around the US$6.3b to US$6.5b range.
  • At the same time, trailing EPS of US$10.08 still reflects earlier years in which earnings compounded at about 12.2% annually, which challenges the idea that the business model has already structurally weakened.

Bears warn that margin pressure could be long lasting, and this shift from 20% to 11.2% is exactly the kind of reset they point to. If that is your concern, it is worth seeing how the detailed cautious case connects these earnings to future scenarios 🐻 Gartner Bear Case.

EPS Swings But TTM Stays Above US$10

• Quarterly EPS has moved between US$0.47 and US$5.14 over recent periods, yet trailing 12 month EPS sits at US$10.08 on TTM net income of US$740.6m.
• Bulls argue that stronger tools and AI features can support recurring demand even when individual quarters look lumpy, and the EPS pattern gives both support and friction to that argument:
  • The fact that TTM EPS remains above US$10 despite a low quarter of US$0.47 suggests the subscription driven model and prior periods of higher profitability still underpin earnings power.
  • However, Q1 2026 EPS of about US$3.19, alongside trailing net margins at 11.2%, shows that any boost from AI products or higher client engagement has not yet translated into the kind of higher margin profile some bullish views focus on.

Bulls point to tools like AskGartner and long term subscription demand as key supports for earnings. This mix of steady TTM EPS with softer margins makes it useful to see how the optimistic narrative connects these numbers to its thesis 🐂 Gartner Bull Case.

Valuation: P/E 13.8x Vs DCF And Targets

• At a share price of US$151.05 and a P/E of 13.8x, the stock is described as trading about 53.8% below a DCF fair value of roughly US$322.01, while analysts are cited with a price target of US$167.00.
• Consensus narrative sees steady but slower growth, and the current valuation picture shows why opinions can differ:
  • Forecast earnings growth of about 4.6% per year and revenue growth of about 3.8% per year are both below the referenced broader US market averages, which fits with more cautious views around growth and helps explain a P/E only slightly above peers at 13.8x.
  • At the same time, trading below the DCF fair value estimate and below the broader US IT industry P/E of 21x means the current price embeds more modest expectations than either the DCF model or the cited long term earnings track record of roughly 12.2% annual growth over five years.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Gartner on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

Mixed signals across growth, margins and valuation mean opinions on Gartner are likely to stay split. It makes sense to look through the underlying data yourself, focus on what matters to your approach and then weigh up the 2 key rewards and 2 important warning signs

See What Else Is Out There

Gartner is wrestling with a reset in net margins from 20% to 11.2% and growth expectations that sit below the referenced broader US market averages.

If that mix of thinner profitability and modest growth targets feels limiting, it is worth comparing it with companies screened for 49 high quality undervalued stocks that may offer stronger value relative to their earnings power.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.