Gartner raises profit forecast on strong AI service demand

Gartner on Tuesday ‌raised its ​annual ​profit forecast driven by steady demand for its research and advisory services, as ‌companies continue to assess technology upgrades and ⁠AI adoption plans.

Gartner's research has become critical in technology ‌planning and vendor evaluation ‌processes across a wide range of industries, supported by its large data sets and domain ​expertise.

• It now expects 2026 adjusted earnings at $13.25 per share, compared to analysts' average ⁠estimate of $13.16 per share, according to data compiled by LSEG. ​Gartner previously expected a profit of $12.30 per share.

• It, however, cut its annual ​revenue forecast to $6.41 billion, from ‌its previous view of $6.46 billion, below expectations of $6.52 billion.

• Gartner also projected ⁠annual revenue of $5.2 billion for the insights segment, its biggest unit, slightly ahead of its previous ⁠estimate of $5.19 billion.

• For the quarter ended March 31, ​the company reported revenue of $1.51 billion, which fell short of estimates of $1.52 billion.

• Adjusted earnings for the first ‌quarter came in at $3.32 per share, compared to estimates of $2.91.

• The first-quarter ‌revenue at Gartner's consulting segment, which provides advisory ⁠work that helps ‌firms execute and ​implement strategy fell about 15% to $119 million.

(Reporting by Arunesh Sinha; Editing by Shailesh ‌Kuber)

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