Why Is Gartner (IT) Down 2.8% Since Last Earnings Report?

Gartner (IT) shares have declined 2.8% since its last earnings report, underperforming the S&P 500, with estimates remaining flat over the past month. While Gartner holds a Zacks Rank #3 (Hold), indicating an expected in-line return, peer CRA International (CRAI) has gained 6.1% over the same period, reporting a 5.9% year-over-year revenue increase to $181.85 million and EPS of $2.22 in its most recent quarter.

Analysis

Gartner (IT) shares have experienced a modest decline of 2.8% since its last earnings report approximately a month ago, a performance that trails the S&P 500. Analyst earnings estimates for Gartner have remained unchanged during this period, suggesting a lack of new catalysts or significant shifts in outlook. The company currently holds a Zacks Rank #3 (Hold), indicating an expectation of in-line market performance in the near term. Gartner's VGM Scores present a mixed picture: a strong Momentum Grade of 'A' and a respectable Growth Grade of 'B' are offset by a weak Value Grade of 'D', culminating in an overall VGM Score of 'B'. In contrast, industry peer CRA International (CRAI) has seen its shares appreciate by 6.1% over the past month. CRAI reported a 5.9% year-over-year revenue increase to $181.85 million and an EPS of $2.22 (up from $1.96 a year ago) for its quarter ended March 2025. Despite this recent outperformance and a +0.4% increase in its Zacks Consensus Estimate over the last 30 days, CRAI also holds a Zacks Rank #3 (Hold) and a less favorable overall VGM Score of 'D'. CRAI is expected to post earnings of $1.83 per share for the current quarter, flat year-over-year.

Key Decisions for Investors

• Given Gartner's Zacks Rank #3 (Hold) and flat earnings estimate revisions, investors might consider maintaining current positions, as an in-line return is anticipated in the coming months.
• The divergence between Gartner's strong 'A' Momentum Score and weak 'D' Value Score warrants careful consideration of individual investment strategies; momentum-focused investors might find it appealing, while value investors may remain cautious.
• Investors should monitor Gartner's upcoming earnings release and any subsequent revisions to analyst estimates for potential catalysts that could alter its current trajectory.
• The contrasting stock performance of Gartner and its peer CRA International, despite both holding similar Zacks Ranks, suggests that company-specific factors are significant, and a broader industry-wide call may not be appropriate without further differentiated analysis.