Table of Contents :
• Stock Rating & Target Price
• Investment Thesis
• Fundamental Models Used
• Company Description
• Corporate Timeline
• Key Metrics (KPI ) and Recently Reported Earnings Review
• Business Highlights, Strategic Announcements & Outlook
• Quarter-over-Quarter (Q-o-Q) and Year-over-Year (Y-o-Y) Growth Analysis
• Key Catalysts Driving Growth
• Historical Financial Statement Analysis & CAGR Trends
• Quarterly Key Financial Ratios and Performance Metrics
• Annual Financial Performance Analysis: Horizontal and Vertical Financial Analysis, Trends
• Financial Forecasts
• Annual Forecasts: Income Statement
• Annual Forecasts: Cash Flow Statements
• Net Debt Levels
• A Closer Look at DCF: Our Assumptions and Methodology
• Terminal Value Calculation
• Target Price Analysis
• Valuation Multiples
• Supplementary Valuation Analysis: Multiples Approach
• Scenario/Sensitivity Analysis – Base Case , Bull Case ,Bear Case
• Holistic Peer Review & Trading Comps: Financial Data, Operational Metrics, and Valuation Multiples
• Implied Price Per Share
• Ownership Activity/ Insider Trades
• Ownership Summary
• An analysis of ESG Risk Rating
• Key Professionals
• Key Board Members
• Key Risks Considerations
• Analyst Ratings
• Analyst Industry Views
• Disclosures
Gartner Inc. (IT): Riding High on AI & Tech Vendor Rebound—Will Core Market Value Proposition Fuel Double-Digit Growth?
Gartner’s Q3 2024 exceeded expectations, with revenue of $1.48B beating estimates by $9.14M and GAAP EPS of $5.32 surpassing forecasts by $2.60. Contract Value (CV), a forward revenue visibility metric, grew 7% YoY (FX-neutral), driven by enterprise function leaders (+9%) and Global Business Sales (GBS, +12%). Global Technology Sales (GTS) expanded 6%, with new business improving by 8% and sequential momentum in the tech vendor segment offsetting challenges among smaller, constrained vendors. Gartner’s most profitable segment achieved 5% revenue growth, with subscription revenue climbing 7%. Conferences surged 30%, demonstrating strong demand for Gartner’s differentiated offerings, while Consulting saw modest 2% growth due to contract lumpiness. Management raised FY24 guidance, projecting $6.225B in revenue (+6% FX-neutral growth), $1.52B in adjusted EBITDA, and $1.35B in free cash flow. Strategic investments in AI tools, salesforce expansion, and cross-practice synergies bolster Gartner’s long-term growth prospects in areas like generative AI, cost optimization, and cybersecurity. However, risks include uneven margin expansion, legacy product attrition, and slow productivity ramp-ups for new hires. Can Gartner’s operational discipline and focus on AI, tech vendor recovery, and cross-practice innovation sustain its momentum to achieve its double-digit revenue growth targets over the medium term?
