Reasons Why You Should Retain Gartner Stock In Your Portfolio

Shares of Gartner IT have had a decent run over the past month. The stock has gained 9.6% against the industry’s marginal decline.

The company’s first-quarter 2026 earnings are expected to increase marginally year over year. Earnings in 2026 and 2027 are projected to rise 1.5% and 10.6%, respectively, year over year. Revenues are expected to increase marginally in 2026 and 5.8% in 2027.

Factors That Bode Well for IT

IT’s top line benefits from its indispensable, technologically advanced research segment, which provides key insights and decision-support solutions across different sectors. These insights have enabled customers to research, analyze and interpret the business with greater precision, efficiency and discipline.

The company offers a wide range of products and services, especially data-driven insights, with low customer concentration, which mitigates operating risks and gives it a competitive advantage over rivals. As of 2025, the company’s active insights library grew approximately 50%. It also introduced new processes to create insights on the same day, reducing the average insight creation time by 75% from 2024 levels.

Gartner creates and distributes proprietary research content via published reports, interactive tools, facilitated peer networking, briefings, consultancy and advisory services, and events. Its continuous effort to accelerate and enhance the capabilities of AskGartner, an AI-driven tool that enables quicker access and generates in-depth summaries of business and technology insights across its Business-as-a-Service library, sets the company ahead of its competitors.

The company also generates considerable client value through its conferences, uniquely designed to combine actionable and objective insights with expert guidance and consultation. The company plans to expand its destination conferences and recently launched Gartner C-level communities, its local, peer-driven one-day events, where clients' C-level executives can gain access to its insights.

Gartner enhances shareholder value through consistent share buybacks. It repurchased shares worth $1 billion, $600 million, $700 million and $2 billion in 2022, 2023, 2024 and 2025, respectively. These repurchases indicate the company’s confidence in its business and commitment to instill investor confidence in the stock.

A Risk to Watch

A significant part of the company's operations is international. Appreciation or depreciation of the U.S. dollar against foreign currencies such as the British pound, euro, Canadian dollar, Australian dollar and Japanese yen could impact the company's financial results, making it vulnerable to foreign exchange risk.

IT currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Stocks to Consider

A couple of better-ranked stocks in the Business Services sector are Deluxe DLX and Coherent Corp. COHR.

Deluxe carries a Zacks Rank #2 (Buy) at present. It has a long-term earnings growth expectation of 12%.

DLX delivered a trailing four-quarter earnings surprise of 15.6% on average.

Coherent Corp. holds a Zacks Rank of 2 at present. It has a long-term earnings growth expectation of 38.1%.

COHR beat earnings estimates in each of the last four quarters, with the earnings surprise being 7.6%, on average.

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This article originally published on Zacks Investment Research (zacks.com).

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