Gartner EPS beats street estimates despite drop in net income

Gartner (NYSE:IT) reported fourth-quarter earnings that surpassed analyst expectations, even as the research and advisory firm saw a significant year-over-year decline in net income.

The Stamford, Connecticut-based company posted adjusted earnings of $3.94 per share, comfortably beating the $3.51 consensus estimate.

Revenue for the period rose 2% to $1.8 billion, meeting Wall Street’s targets.

While operational metrics remained steady, GAAP net income fell 39% to $242 million, primarily due to the absence of one-time gains recorded in the prior year and increased investments in generative AI capabilities.

Gartner continues to be a primary beneficiary of the AI-driven consulting boom.

CEO Gene Hall noted that the company’s financial results were "ahead of expectations" as enterprises ramped up spending on mission-critical technology research.

Total contract value reached $5.2 billion at year-end, up 1% on a currency-neutral basis, with Global Business Sales (GBS) leading the growth.

The firm also highlighted its aggressive capital return strategy.

In 2025, Gartner repurchased 7 million shares for $2 billion, reducing its outstanding share count by 8%.

To signal continued confidence, the Board of Directors authorized an additional $500 million for share repurchases in January 2026.