Gartner's EPS Beat Masked Revenue Shortfall; Investigation Probes Presentation of Financial Metrics

Rhea-AI Summary

{"summary":"","positive":[],"negative":[],"faq":[]}

Key Figures

2025 adjusted EPS guidance: $12.65+ Share-count assumption: 78 million shares Q3 2025 buybacks: >$1 billion +3 more

6 metrics

2025 adjusted EPS guidance $12.65+ Management prior guidance for full-year 2025 adjusted EPS

Share-count assumption 78 million shares Base share count used in 2025 EPS guidance

Q3 2025 buybacks >$1 billion Stock repurchased during Q3 2025

Share count reduction 6% Year-over-year reduction in shares from repurchases

Post-earnings share drop >20% Intraday decline after Feb. 3, 2026 earnings release

New 52-week low Below $160 Level reached after earnings before this investigation release

Market Reality Check

Price: $161.53 Vol: Volume 2,491,029 is 1.32x...

normal vol

$161.53 Last Close

Volume Volume 2,491,029 is 1.32x the 20-day average of 1,888,184 ahead of this headline. normal

Technical Shares at $159.89 are trading below the 200-day MA of $295.12 and sit far under the 52-week high of $534.50.

Peers on Argus

While IT was roughly flat pre-news (+0.09%), momentum data show two peers (e.g.,...

2 Down

While IT was roughly flat pre-news (+0.09%), momentum data show two peers (e.g., CACI, LDOS) down about 9–11%, suggesting broader sector pressure, but the legal‑investigation headline is company‑specific rather than a synchronized sector move.

Common Catalyst Peers have routine news (conference participation, industry recognition) rather than regulatory or earnings-related issues, so this investigation appears specific to Gartner.

Historical Context

5 past events · Latest: Feb 03 (Negative)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Feb 03	Q4 2025 earnings	Negative	-20.9%	Earnings showed profit and cash flow declines despite modest revenue growth and buybacks.
Jan 29	Board appointments	Positive	-1.4%	Two new independent directors added, enhancing AI and investment expertise on board.
Jan 29	Business divestiture deal	Positive	-5.9%	Agreement to sell Capterra, Software Advice, and GetApp to G2 to reshape portfolio.
Jan 20	Earnings date notice	Neutral	-3.8%	Announcement of timing and webcast details for upcoming Q4 2025 earnings release.
Dec 07	Conference announcement	Neutral	-1.1%	Launch of Gartner Finance Symposium/Xpo 2026 focused on AI and finance transformation.

Pattern Detected

Recent history shows predominantly negative price reactions, with shares declining on earnings, corporate actions, and even neutral announcements, suggesting a tendency for downside or selling pressure around news.

Recent Company History

Over the last few months, Gartner’s news flow featured Q4 2025 earnings with softer profit and cash flow trends, board refreshment with two new directors, and an agreement to divest several Digital Markets assets. Additional items included an earnings-date notice and a 2026 finance symposium announcement. Most of these events saw the stock fall (-20.87%, -5.88%, and smaller declines), framing today’s legal‑investigation headline against an already cautious backdrop.

Regulatory & Risk Context

Active S-3 Shelf

Shelf Active

Active S-3 Shelf Registration 2025-11-12

Gartner has an effective Form S-3ASR shelf registration dated 2025-11-12, allowing it to offer various securities (including common stock, preferred stock, debt, and warrants) from time to time via prospectus supplements. The company has used this shelf in 2 recent 424B5 offerings, providing flexibility to raise capital as needed.

Market Pulse Summary

This announcement highlights an investigation into how Gartner emphasized its EPS beat versus revenu...

Analysis

This announcement highlights an investigation into how Gartner emphasized its EPS beat versus revenue shortfalls and a weaker 2026 outlook. It focuses on compliance with SEC Regulation G and Regulation S‑K for non‑GAAP metrics, as well as prior guidance of at least $12.65 EPS based on 78 million shares and >$1B in buybacks. Monitoring future disclosures and any regulatory developments will be important.

Key Terms

regulation s-k, non-gaap financial measures, gaap

3 terms

regulation s-k regulatory

"SEC Regulation G and Item 10(e) of Regulation S-K establish disclosure requirements"

A set of U.S. Securities and Exchange Commission rules that tell public companies which narrative and qualitative details must be disclosed in filings, such as risk factors, management discussion, executive pay, legal proceedings and business description. Think of it as a standardized checklist or blueprint that ensures investors get the same types of background information from every company so they can compare risks, management quality and strategy before making investment decisions.

non-gaap financial measures financial

"requirements for companies presenting non-GAAP financial measures."

Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.

gaap financial

"reconciled to the most directly comparable GAAP measure and that GAAP results"

GAAP, or Generally Accepted Accounting Principles, are a set of standardized rules and guidelines that companies follow when preparing their financial statements. They ensure consistency, transparency, and comparability across different companies, making it easier for investors to understand and compare financial information accurately. This helps investors make informed decisions based on trustworthy and uniform financial reports.

AI-generated analysis. Not financial advice.

NYSE: IT

NEW YORK, Feb. 11, 2026 /PRNewswire/ -- Levi & Korsinsky, LLP is investigating Gartner, Inc. (NYSE: IT) regarding the presentation of financial metrics in the company's earnings communications and SEC filings. Shareholders who suffered losses may obtain information about this investigation by clicking here.

SEC Regulation G and Item 10(e) of Regulation S-K establish disclosure requirements for companies presenting non-GAAP financial measures. These rules require that adjusted metrics be reconciled to the most directly comparable GAAP measure and that GAAP results receive equal or greater prominence. The regulations aim to prevent companies from using adjusted presentations to obscure underlying performance trends.

Gartner's February 3, 2026 fourth quarter earnings release presented a narrative that emphasized the company's earnings-per-share beat relative to analyst estimates. However, the same release disclosed that revenue fell short of consensus expectations and that the company was issuing a full-year 2026 outlook that demonstrated a year-over-year decline. The investigation will examine the relative prominence given to each metric in the company's communications.

The company had previously guided investors to expect adjusted EPS of at least $12.65 for 2025, with CFO Craig Safian noting that the guidance was based on 78 million shares and assumed "repurchases to offset dilution." Gartner repurchased more than $1 billion of stock during Q3 2025, reducing share count by 6% year-over-year. The investigation will examine whether the EPS guidance and share-count assumptions were realistic given management's knowledge of revenue trends.

Following the earnings release, Gartner shares declined more than 20% in midday trading, reaching a new 52-week low below $160. Trading volume increased significantly above normal levels.

Gartner investors who wish to learn more about their rights may contact Levi & Korsinsky for a free consultation.

Levi & Korsinsky, LLP is a nationally recognized firm with offices in New York, California, Connecticut, and Washington, D.C. that prosecutes securities, consumer, and shareholder class actions on behalf of investors (www.zlk.com).

CONTACT:

Joseph E. Levi, Esq.
Levi & Korsinsky, LLP
33 Whitehall Street, 27th Floor
New York, NY 10004
Tel: (212) 363-7500
Fax: (212) 363-7171
Email: jlevi@levikorsinsky.com
www.zlk.com

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SOURCE Levi & Korsinsky, LLP