Research and advisory firm Gartner (NYSE: IT) will be reporting earnings this Tuesday before market hours. Here’s what investors should know.
Gartner met analysts’ revenue expectations last quarter, reporting revenues of $1.53 billion, up 4.2% year on year. It was a strong quarter for the company, with a solid beat of analysts’ EPS estimates.
Is Gartner a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Gartner’s revenue to grow 5.3% year on year to $1.68 billion, in line with the 6.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $3.31 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Gartner has missed Wall Street’s revenue estimates three times over the last two years.
Looking at Gartner’s peers in the it services & consulting segment, some have already reported their Q2 results, giving us a hint as to what we can expect. DXC’s revenues decreased 2.4% year on year, beating analysts’ expectations by 2.4%, and Grid Dynamics reported revenues up 21.7%, topping estimates by 0.5%. DXC traded down 5.7% following the results while Grid Dynamics was also down 16.4%.
Read our full analysis of DXC’s results here and Grid Dynamics’s results here.
The outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. While some of the it services & consulting stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 4.4% on average over the last month. Gartner is down 17.8% during the same time and is heading into earnings with an average analyst price target of $454.67 (compared to the current share price of $328.46).
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