Gartner trades at 12.6X forward earnings, well below industry and historical multiples, as earnings guidance rises

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Summary · why it matters

Gartner trades at 12.6 times forward 12-month earnings, below the industry's 14.4 times, the sector's 18.1 times, the S&P 500's 20.7 times, and its own five-year median of 33.9 times. The company raised its 2026 adjusted earnings guidance to at least $14 per share from $13.25 and lifted its adjusted EBITDA outlook to at least $1.57 billion from $1.55 billion. However, management lowered its 2026 adjusted revenue outlook to at least $6.38 billion from $6.41 billion, and second-quarter Consulting revenues fell 8.8% year over year to $142 million. Free cash flow reached $378 million in the second quarter and about $1.3 billion over the trailing 12 months, with the 2026 free cash flow outlook raised to at least $1.19 billion. The stock carries a Zacks Rank of 1, or Strong Buy, with a Value Score of A and a VGM Score of A.

Impact on stocks 3

Information Technology · 1 stocks
Gartner Inc
IT
▲ PositiveCapitalrelevance

Raised earnings and EBITDA guidance, strong free cash flow, and attractive valuation.

Artificial Intelligence · 1 stocks
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