Gartner Inc

Gartner Inc maintains a capital structure with a debt-to-equity ratio of 3.42, indicating a significant reliance on debt financing relative to equity. The company's liquidity position is characterized as medium risk, with a current ratio of 0.91, suggesting limited short-term liquidity to cover immediate liabilities. Despite holding $1.24 billion in cash and equivalents, the company's long-term debt of $2.46 billion results in a negative net cash position when total debt is subtracted.

In terms of profitability, Gartner's return on equity (ROE) of 29.32% is strong, reflecting efficient use of shareholders' equity to generate profits. However, its return on assets (ROA) of 2.73% is relatively modest, indicating that the company is not leveraging its asset base as effectively as it could be. The operating margin of 18.6% (calculated from operating income of $273.89 million on revenue of $1.47 billion) is in line with industry expectations for IT consulting services.

Geographically and segment-wise, Gartner's revenue is not disclosed by region or business unit in the provided data, but the company operates globally, with a primary focus on IT consulting and research services. The lack of segment-specific data limits the ability to assess geographic or product concentration risk.

Looking at growth, Gartner's revenue of $1.47 billion in the latest period suggests a stable but not rapidly growing business. The company's free cash flow of $237.19 million and operating cash flow of $188.84 million indicate a capacity to fund operations and potentially reinvest in the business. However, the capital expenditure of -$22.66 million suggests minimal investment in physical assets, which is typical for a service-based IT consulting firm.

Risk factors for Gartner include its high debt-to-equity ratio and the associated liquidity risk. The company's dilution risk is assessed as low, with no significant dilution potential in the near term. The risk assessment also highlights the negative net cash position as a key flag, which could constrain the company's flexibility in capital allocation.

Recent events and disclosures do not include specific filings or transcripts in the provided data, but the company's financial performance and risk profile suggest a stable, albeit debt-heavy, business model. Analysts have provided a range of price targets, with a mean of $183.75 and a median of $170.50, indicating a generally positive outlook despite a mean recommendation of 2.65, which is closer to a "hold" rating.

Revenue demonstrated an 8.2% compound annual growth rate over the four-year period ending in fiscal 2026.

Free cash flow reached $1.35 billion in fiscal 2025, reflecting strong cash generation capabilities before the projected decline.

The debt-to-equity ratio of 3.42 ranks in the bottom quartile, indicating significantly higher leverage than peers.

High credit risk flags suggest potential difficulties in managing the company's substantial long-term debt obligations.

Revenue $1.75B, +2,2% YoY; Operating income +5,2% YoY.

• ▍Revenue $1.75B, +2,2% YoY
• ▍Operating income +5,2% YoY
• ▍Net income −39,2% YoY
• ▍Free cash flow −37,5% YoY
• ▍Net margin 13.8%

Revenue $1.52B, +2,7% YoY; Operating income −64,9% YoY.

• ▍Revenue $1.52B, +2,7% YoY
• ▍Operating income −64,9% YoY
• ▍Net income −91,5% YoY
• ▍Free cash flow −87,1% YoY
• ▍Net margin 2.3%

Revenue $1.69B, +5,7% YoY; Operating income +2,6% YoY.

• ▍Revenue $1.69B, +5,7% YoY
• ▍Operating income +2,6% YoY
• ▍Net income +4,9% YoY
• ▍Free cash flow +1,8% YoY
• ▍Net margin 14.3%

Revenue $1.53B, +4,2% YoY; Operating income +1,5% YoY.

• ▍Revenue $1.53B, +4,2% YoY
• ▍Operating income +1,5% YoY
• ▍Net income +0,2% YoY
• ▍Free cash flow −0,5% YoY
• ▍Net margin 13.7%

Revenue $1.72B; Operating income $317.8M.

• ▍Revenue $1.72B
• ▍Operating income $317.8M
• ▍Net margin 23.2%

Revenue $1.48B; Operating income $245.8M.

• ▍Revenue $1.48B
• ▍Operating income $245.8M
• ▍Net margin 28.0%

Revenue $1.60B; Operating income $318.8M.

• ▍Revenue $1.60B
• ▍Operating income $318.8M
• ▍Net margin 14.4%

Revenue $1.47B; Operating income $273.9M.

• ▍Revenue $1.47B
• ▍Operating income $273.9M
• ▍Net margin 14.3%

Revenue $6.50B, +3,7% YoY; Operating income −11,3% YoY.

• ▍Revenue $6.50B, +3,7% YoY
• ▍Operating income −11,3% YoY
• ▍Net income −41,8% YoY
• ▍Free cash flow −39,9% YoY
• ▍Net margin 11.2%

Revenue $6.27B, +6,1% YoY; Operating income −6,5% YoY.

• ▍Revenue $6.27B, +6,1% YoY
• ▍Operating income −6,5% YoY
• ▍Net income +42,1% YoY
• ▍Free cash flow +39,5% YoY
• ▍Net margin 20.0%

Revenue $5.91B, +7,9% YoY; Operating income +12,4% YoY.

• ▍Revenue $5.91B, +7,9% YoY
• ▍Operating income +12,4% YoY
• ▍Net income +9,2% YoY
• ▍Free cash flow +8,8% YoY
• ▍Net margin 14.9%

Revenue $5.48B, +15,7% YoY; Operating income +20,1% YoY.

• ▍Revenue $5.48B, +15,7% YoY
• ▍Operating income +20,1% YoY
• ▍Net income +1,8% YoY
• ▍Free cash flow −5,8% YoY
• ▍Net margin 14.8%