Did Gartner, Inc. (IT) Mislead Investors? Levi & Korsinsky Investigates
MWN-AI** Summary
On March 9, 2026, Levi & Korsinsky announced it is investigating Gartner, Inc. (NYSE: IT) for potential violations of federal securities laws regarding the presentation of non-GAAP financial measures. The investigation stems from Gartner's fourth-quarter earnings report released on February 3, 2026, where the company highlighted an earnings-per-share (EPS) beat that overshadowed disappointing revenue results and a full-year outlook showing a year-over-year decline.
According to SEC Regulation G and Item 10(e) of Regulation S-K, companies are required to reconcile adjusted financial metrics to the nearest GAAP measure and ensure that GAAP results hold equal or greater prominence in communications. The crux of the investigation will focus on whether Gartner's emphasis on adjusted EPS was misleading, particularly given that its revenue fell short of consensus expectations.
Gartner had previously set a 2025 EPS guidance of at least $12.65, a forecast made by CFO Craig Safian, predicated on the assumption that share repurchases would offset share dilution. Notably, the company spent over $1 billion on stock buybacks in Q3 2025, reducing its share count by 6% year-over-year. The investigation will assess the realism of these EPS projections and share-count assumptions considering the known revenue trends.
Following the earnings announcement, Gartner's stock price plummeted over 20%, hitting a new 52-week low, signaling investor concern over the company's financial health and transparency. Levi & Korsinsky aims to assist shareholders who incurred losses, offering legal recourse under securities laws. The firm boasts a strong track record of representing investors in complex cases and has been recognized as a leading securities litigation firm in the United States.
MWN-AI** Analysis
The investigation launched by Levi & Korsinsky into Gartner, Inc. (NYSE: IT) raises serious concerns regarding the company's handling of financial disclosures, specifically with respect to non-GAAP measures. Investors should scrutinize this situation to assess potential implications for the stock's future.
Gartner's fourth quarter earnings release on February 3, 2026, highlighted an earnings-per-share (EPS) beat, yet simultaneously revealed that revenues fell short of consensus estimates. This inconsistency suggests a possible misalignment between the focus on adjusted earnings and the underlying business performance. Investors rely on transparent and accurate financial reporting, and any failure to adequately present results in accordance with SEC regulations could be deemed misleading.
The emphasis on adjusted EPS over GAAP results—particularly given the disclosed decline in revenue—could represent a strategic decision to mask underlying weaknesses. The revelation that Gartner had issued guidance of at least $12.65 EPS for 2025, accompanied by significant stock repurchases intended to offset dilution, requires further examination. If management was aware that revenue trends would not substantiate this guidance, it raises ethical questions about their communications with shareholders.
Following the earnings release, the sharp decline of over 20% in Gartner's stock price serves as an immediate signal to investors. The heightened trading volume indicates that the market is reacting to the new information and reassessing the company's value.
In light of these developments, investors may want to reassess their positions in Gartner. Engaging with legal professionals to explore potential recovery options could be prudent for those who experienced losses. A cautious approach is warranted as the investigation unfolds and more information comes to light regarding Gartner’s compliance with federal securities laws.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
New York, New York--(Newsfile Corp. - March 9, 2026) - Levi & Korsinsky notifies investors that it has commenced an investigation into Gartner, Inc. (NYSE: IT) ("Gartner, Inc.") concerning potential violations of the federal securities laws.
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.
If you suffered a loss on your Gartner, Inc. securities and would like to explore a potential recovery under the federal securities laws, Learn More About the Investigation or contact Joseph E. Levi, Esq. via email at jlevi@levikorsinsky.com or call (212)363-7500 to speak to our team of experienced shareholder advocates.
WHY LEVI & KORSINSKY: Over the past 20 years, Levi & Korsinsky LLP has established itself as a nationally-recognized securities litigation firm that has secured hundreds of millions of dollars for aggrieved shareholders and built a track record of winning high-stakes cases. The firm has extensive expertise representing investors in complex securities litigation and a team of over 70 employees to serve our clients. For seven years in a row, Levi & Korsinsky has ranked in ISS Securities Class Action Services' Top 50 Report as one of the top securities litigation firms in the United States. Attorney Advertising. Prior results do not guarantee similar outcomes.
CONTACT:
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
Ed Korsinsky, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004
jlevi@levikorsinsky.com
Tel: (212)363-7500
Fax: (212)363-7171
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/287734
FAQ**
What potential violations are being investigated regarding Gartner Inc. IT's earnings release, and how might this impact investor confidence in the company?
How did Gartner Inc. IT's disclosures about adjusted EPS and revenue shortfalls comply with SEC Regulation G and Regulation S-K, and what implications does this have for regulatory scrutiny?
What factors contributed to Gartner Inc. IT's stock decline of over 20% following the fourth quarter earnings release, and how might this affect future investor sentiment?
How can investors who suffered losses on Gartner Inc. IT securities engage with Levi & Korsinsky to explore potential recovery under federal securities laws?
**MWN-AI FAQ is based on asking OpenAI questions about Gartner Inc. (NYSE: IT).
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