Gartner falls 13.2% after quarterly results and updated outlook

Session of November 3, 2026 · Published November 4, 2026 · 4 min read

What happened

Gartner (IT) fell 13.2% on November 3, 2026, because its third-quarter results and an updated full-year outlook implied softer near-term performance. The stock closed at $204.22 after opening 11.6% below the previous close. Investors reacted to management commentary and analyst notes that the new guidance contained weaker-than-expected fourth-quarter implications.

Closing price over the last 30 trading sessions. On November 3, 2026, IT closed at $204.22, down 13.2% on the day and 14.4% higher than 30 sessions earlier.

The quarter showed strength on several fronts. Quarterly earnings were $3.59 per share versus $2.84 expected, 26.4% above estimates. The company said it raised its full-year 2026 outlook when it published its formal Q3 results and issued an updated full-year financial outlook. Heavy trading amplified the decline: volume was 3.2 times its 20-day average even as the S&P 500 rose 0.4% on the day. The sell-off followed coverage from Barrons and The Motley Fool highlighting the implied fourth-quarter softness.

How big was the move

The day’s decline was large by the stock’s own standards: it was 3.6 times a typical daily move for this stock. Over the five-session window the stock fell 7.6% while the S&P 500 over five sessions fell 2.0% and the Technology sector median rose 0.7%, leaving the stock 13.9 percentage points worse than the sector median on the day. The stock’s beta is 0.66, meaning the stock tends to move less than the market.

Each bar is one day's price change; the outlined bar is November 3, 2026. A typical daily move over the past year was 3.6%, so the latest move equals 3.7 times that. Moves outside the dashed lines (about 7.2%) are unusual.

Heavy volume and a pronounced one-day gap lower helped accelerate selling pressure. That pushed several short-term technical readings into less favorable territory even though longer-term measures remained positive.

The technical picture

Technical indicators presented a mixed picture. The stock was 3.8% below its 20-day moving average but 3.6% above its 50-day moving average and 20.7% above its 200-day moving average. The 50-day average is above the 200-day average, a sign of an established uptrend. The stock had spent 38 consecutive trading days above the 200-day average.

Closing price over the past year. IT ends the period 19.8% below its 52-week high, above its 50-day average ($197.10) and above its 200-day average ($169.17).

Momentum readings were neutral: the Relative Strength Index (14 days) read 47, between 30 and 70. The stock traded 20.5% below its 52-week high. Shorter-term performance had been positive before the drop: the stock rose 8.8% over one month and 9.6% over three months. It fell 17.8% over one year, placing it 28.4 percentage points behind the S&P 500. Volatility was notable: the stock’s 60-day annualized volatility was 59%, higher than 86% of its own readings over five years.

Fundamentals and valuation

For the four quarters through September 30, 2026, Gartner reported revenue of $6.44 billion, a decline of 0.2% from a year earlier. Diluted earnings per share for that span totaled $14.03, a rise of 23.1% year over year. Profitability improved: gross margin was 69.4% versus 68.2% a year earlier and operating margin was 20.3% versus 15.6% a year earlier. Free-cash-flow margin was 20.1%, return on invested capital was 23.8%, and the balance sheet showed net cash of $1.40 billion.

Quarterly revenue by period end. The latest quarter brought $1.5B, 1.3% less than the same quarter a year earlier.

Share count decreased by 14.7% over one year, which helped per-share metrics. On valuation measures, the stock traded at 14.6 times trailing earnings and 14.1 times expected forward earnings, with a free-cash-flow yield of 9.0%. The price-to-trailing-earnings reading was the lowest of the past five years, compared with a five-year median of 29.8 times earnings. At a market value of $14.45 billion, those measures signaled an unusually low price relative to recent history even as growth scores lagged.

Earnings and analyst expectations

Gartner reported on November 3, 2026, that quarterly earnings were $3.59 per share, 26.4% above estimates, marking 15 consecutive quarters beating estimates. The company raised its full-year 2026 outlook when it published its formal Q3 results and issued an updated full-year financial outlook. Management commentary and analyst coverage noted that the outlook implied weaker-than-expected results for the fourth quarter, which contributed to downward investor reaction despite the raised full-year guidance.

Diluted earnings per share by quarter. The latest quarter shows $3.35, against $0.47 in the same quarter a year earlier.

The company’s average surprise over the last four reports was 16.6% above estimates, and the typical two-day reaction after recent reports had been that the stock fell 5.5%. Eighteen analysts covered the stock, with a consensus rating of Hold and a consensus price target of $190.29, 6.8% below the closing price. Twenty-eight percent of analysts assigned Buy or Strong Buy ratings.

What to watch

Next report: February 2, 2027.
Last report: November 3, 2026: earnings per share of $3.59 against $2.84 expected, 26.4% above estimates.
Trading volume on November 3, 2026: 3.2 times its 20-day average; the stock opened 11.6% below the previous close.
Valuation: 14.6 times trailing earnings, the lowest reading of the past five years (five-year median: 29.8 times earnings).
Technical stretch: 38 consecutive trading days above its 200-day average.

Full IT analysis: scores, chart and financials →