Gartner's Financial Metrics Under Scrutiny: EPS Gains Hide Revenue Declines
Gartner's Financial Metrics Under Scrutiny
On February 11, 2026, news emerged regarding an investigation into Gartner, Inc. (NYSE: IT) concerning its financial communications. Led by Levi & Korsinsky, LLP, the inquiry focuses on the way Gartner has presented its earnings metrics, particularly in its latest quarterly report released on February 3. This release celebrated a beat in earnings per share (EPS), but simultaneously revealed a revenue shortfall that cast a shadow over the company's performance.
Background of the Investigation
The scrutiny follows SEC Regulation G and Item 10(e) of Regulation S-K, which set clear disclosure requirements for companies when presenting non-GAAP financial measures. These regulations mandate that any adjusted metrics must be reconciled to their most directly comparable GAAP measures and that GAAP results should be presented with equal or greater prominence. This regulation aims to prevent manipulation of financial data to obscure underlying performance, a concern raised in Gartner's case.
In the earnings report, Gartner emphasized its EPS surpassing analyst expectations but disclosed, in the same breath, that revenue had fallen below consensus estimates. This dissonance between EPS triumphs and revenue declines raised eyebrows among investors and analysts alike.
The Earnings Release Details
The company had previously informed investors to anticipate an adjusted EPS of at least $12.65 for the year 2025, with CFO Craig Safian clarifying that this figure was predicated on an assumption of 78 million shares and stock repurchases intended to offset expected dilution. Gartner engaged in substantial stock buybacks, exceeding $1 billion in the third quarter of 2025, thereby reducing the total share count by 6% compared to the previous year. However, the validity of these EPS projections is now under examination, especially in light of the reported revenue trends.
Following the release of the earnings report, Gartner's stock suffered a significant decline, plummeting over 20% in midday trading, even dipping below $160—marking a new 52-week low. The increase in trading volume was notable, suggesting a heightened level of concern among investors.
Implications for Shareholders
Gartner shareholders who incurred losses due to this apparent disparity in financial reporting are encouraged to reach out to Levi & Korsinsky for guidance on their rights and potential avenues for recovery. The firm has a strong reputation for handling securities and shareholder class actions, serving investors from various locations across the United States.
As this investigation unfolds, it will not only impact Gartner's reputation but may also influence its future financial reporting practices. Stakeholders are keenly watching how the company responds to these inquiries and whether it can provide clarity regarding its financial health.
In conclusion, the complexities surrounding Gartner's earnings metrics have put its financial integrity under the spotlight. The outcome of this investigation may lead to significant repercussions for the firm's financial disclosures moving forward, emphasizing the need for transparency in corporate financial communications.