Gartner stock sees increased buyback authorization as UBS maintains neutral stance

Investing.com - UBS has reiterated its Neutral rating and $270.00 price target on Gartner (NYSE:IT) following the company’s increased share repurchase authorization. The stock, which has declined nearly 46% over the past six months, currently trades at a P/E ratio of 15.2x, according to InvestingPro data.

Gartner recently expanded its share buyback authorization to $1 billion from $450 million at the end of August, according to UBS analyst Joshua Chan’s research note.

The expanded authorization implies third-quarter-to-date repurchases of approximately $850 million, marking the highest quarterly repurchase activity in Gartner’s history.

UBS estimates August buybacks alone reached between $550-600 million, noting the company likely accelerated repurchases following the stock’s decline after second-quarter earnings.

While UBS views the increased repurchase activity as "likely prudent over the longer-term," the firm maintains near-term concerns regarding CV trajectory and potential risks in the second half of the year.

In other recent news, Gartner Inc. reported its second-quarter earnings for 2025, exceeding analyst expectations with an adjusted earnings per share (EPS) of $3.53, compared to the forecast of $3.30. The company’s revenue for the quarter reached $1.7 billion, slightly above the projected $1.68 billion, marking a 6% increase from the previous year. Despite these positive earnings results, Gartner’s stock experienced a significant decline. Additionally, RBC Capital initiated coverage on Gartner with a Sector Perform rating and set a price target of $263. Wolfe Research also began coverage with a Peerperform rating, setting a year-end 2026 price target range of $240-$300. These developments highlight Gartner’s ongoing market presence and the varied perspectives from analysts.

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