Gartner, Inc. (IT): A Bull Case Theory 

We came across a bullish thesis on Gartner, Inc. on Valueinvestorsclub.com by lars. In this article, we will summarize the bulls’ thesis on IT. Gartner, Inc.’s share was trading at $232.74 as of November 28th. IT’s trailing and forward P/E were 20.33 and 17.36 respectively according to Yahoo Finance.

Gartner, Inc. is a high-quality, competitively advantaged business with significant growth and reinvestment opportunities, led by a proven and capable management team. Despite the market pricing its shares near a 15-year low due to fears of being an “AI loser,” the company demonstrates strong fundamentals and compelling data to the contrary. Historically, Gartner has navigated skepticism successfully, such as in 2017 following its acquisition of CEB, which faced initial market resistance but has since grown the Global Business Sales (GBS) unit to over $1.2 billion in quarterly revenue.

Gartner’s business is largely subscription-based research (~80%), with high contribution margins and negative working capital, serving CIOs and broader functional areas, complemented by conferences (~10%) and consulting (~10%) that enhance engagement and network effects. Its dominant position, supported by over 3,000 analysts and a robust benchmarking and advisory platform, offers customers clear ROI and limited substitutes.

The company is run by CEO Gene Hall, who has driven turnarounds, cultural excellence, and disciplined capital allocation, including the successful integration of CEB and opportunistic share repurchases. Gartner has consistently grown its core GTS business >10% annually and still maintains low penetration, while GBS offers a similarly large untapped opportunity.

With nearly net cash on the balance sheet and excess liquidity, Gartner is well-positioned to repurchase 10-15% of shares, enhancing returns. Market concerns around tariffs, DOGE, and AI disruption appear overstated, with non-federal growth resilient and client demand for AI advisory increasing.

Given low current valuations (~13x expected FCFPS) and strong catalysts including normalization of federal contracts, easing tariff pressures, share repurchases, and AI “trough of disillusionment” adoption, Gartner presents a compelling risk/reward profile. Upside potential could exceed 60%, while downside remains limited if transitory headwinds persist.

Previously we covered a bullish thesis on Gartner, Inc. by Bulls On Parade in March 2025, which highlighted the company’s dominant position in technology research, recurring subscription revenue, and disciplined capital allocation. The company’s stock price has depreciated approximately by 45.84% since our coverage. The thesis still stands as Gartner remains competitively advantaged. Lars shares a similar but emphasizes mispricing due to perceived AI disruption and key catalysts.

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Disclosure: None.