Gartner Lifts Annual Profit Outlook by 8% on Strong AI Demand, Beats Q1 EPS
IT is trading near its 52-week low of $139.18 (4.7% above the low).
Summary
Gartner raised its full-year 2026 adjusted earnings per share (EPS) forecast to $13.25 from $12.30, an increase of approximately 8%, attributing the boost to robust demand for its AI-related research and advisory services. The company also reported strong first-quarter adjusted EPS of $3.32, significantly surpassing analyst estimates of $2.91. This positive profit guidance and Q1 EPS beat are material for the company, especially as its stock has been trading near 52-week lows, indicating strong underlying profitability. However, the company did slightly cut its annual revenue forecast and missed Q1 revenue estimates, with its consulting segment revenue declining by 15%. Traders will be watching if the strong demand for AI services can translate into revenue growth in future quarters and if the consulting segment can stabilize.
At the time of this announcement, IT was trading at $145.77 on NYSE in the Technology sector, with a market capitalization of approximately $10B. The 52-week trading range was $139.18 to $451.73. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Reuters.