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Gartner

IT
56
Consulting Services · Technology
Price
$140.19
-2.70 (-1.89%)
Market Cap
$9.39B
Winston Score
56
Winston is curious
A decent business — some strong pillars, some weaker.

Share count falling — buybacks

16.3% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 86.2M (2021) → 72.1M (2025)

Gartner is a research and advisory company that helps business leaders make decisions about technology. It sells subscriptions to research reports, data, and expert advice, mainly to large companies and government agencies around the world. Gartner is best known for its "Magic Quadrant" reports, which rank technology vendors in hundreds of different categories.

Most of Gartner's revenue comes from subscription contracts, where clients pay annually to access its research and talk to analysts. It operates globally, with a large portion of revenue coming from North America, and serves clients in over 90 countries. Its main competitive advantage is the sheer volume of proprietary data it has collected over decades, which is hard for a new competitor to replicate quickly. The key risk is that if companies cut budgets during an economic slowdown, research subscriptions are often among the first expenses reduced.

Winston Score History

Politician Trades

30 trades / 12mo

16 Congressional buys and 14 sells on IT in the last 12 months.

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Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-1.5% YoY

YoY Growth Rate

Revenue declining

EPS Growth

+16.8% YoY

YoY Growth Rate

Steady EPS growth

R&D Spend

$1.0B/ year

16.1% of revenue

4.0x the sector average (4%)

Research and development spending

Insider Activity

3.3%ownership

Relatively low insider ownership

Cash Position

Cash flow positive

$1.7B cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Company generates more cash than it spends — no dilution risk from fundraising

Revenue declining

Gartner's revenue is actually shrinking. In a growth stock, that removes the core investment thesis. The low Winston Score here may be warranted — unless there's a turnaround story.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Gross Margin
71.6%
Premium pricing power — 71.6% gross margin
Operating Margin
20.9%
Excellent — 20.9% operating margin
ROCE
10.4%
Below par — 10.4% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales YoY
+2.3%
Nearly flat sales (2.3% YoY)
EPS YoY
-37.3%
Earnings shrinking (-37.3% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

EPS Consistency
4/8 quarters
Earnings inconsistent quarter-to-quarter

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Cash Flow

Cash Conversion
185%
Turns 185% of profit into real cash
FCF Margin
19.4%
Converts sales into free cash efficiently (19.4%)

FCF margin between 10% and 20%. Every $100 in sales becomes $10 to $20 in real cash.

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Stability

Debt / Equity
47.06
Heavy debt load (47.06)
Interest Cover
15.59x
Comfortably covers interest (15.6x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

P/E Ratio (TTM)
13.8x
Attractive valuation — P/E 13.8

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

P/E vs Forward
+5.9
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (13.8 → 7.9)

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Dividends

Not applicable for this business.
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