Alert: Claims Focus on Alleged Misrepresentations About Contract Value and Consulting Segment Performance
NEW YORK , April 16, 2026 /PRNewswire/ -- Levi & Korsinsky, LLP reminds purchasers of Gartner, Inc. (NYSE: IT) securities of a pending securities class action.
THE CASE: A class action seeks to recover damages for investors who purchased Gartner securities between February 4, 2025, and February 2, 2026.
YOUR OPTIONS: You may be entitled to compensation without payment of any out-of-pocket fees. See if you can recover losses or contact Joseph E. Levi, Esq. at jlevi@levikorsinsky.com or (212) 363-7500.
Gartner shares fell from $336.71 to $243.93 on August 5, 2025, a single-day loss of $92.78 per share (27.55%). A second corrective disclosure on February 3, 2026, drove shares from $202.40 to $160.16, an additional decline of $42.24 per share (20.87%). Investors have until May 18, 2026, to seek lead plaintiff status.
How Gartner's Subscription Revenue Engine Works
Gartner generates approximately 77% of consolidated revenue from research subscriptions. These subscriptions are measured by Contract Value, an FX-neutral metric representing the annualized value of all active subscription contracts. CV growth at year-end effectively determines 80% to 85% of the following year's subscription revenue. When CV growth decelerates, subscription revenue growth follows with near-mathematical certainty.
The Consulting segment, representing roughly 9% of revenue, depends on backlog, pipeline conversion, and labor utilization. Management guided Consulting revenue of at least $565 million for fiscal 2025, later revised to $575 million, and repeatedly told investors the segment's outlook was "unchanged" quarter after quarter.
The Alleged CV Deceleration Trajectory
The complaint chronicles a steady deterioration in Gartner's core growth metric that management allegedly failed to disclose adequately:
- Q4 2024 exit CV growth rate stood at 7.8%, which the lawsuit contends already trailed the 12%-16% medium-term target by a wide margin
- Q1 2025 CV growth held at 7%, with global CV declining $63 million sequentially from Q4 2024, roughly 80% attributable to U.S. federal government losses. Ex-federal CV growth was 8%.
- Q2 2025 CV growth dropped to 5% overall and 6% excluding federal contracts, a 200 basis point deceleration in one quarter
- By Q4 2025, CV growth had fallen considerably further. As disclosed on February 3, 2026, ex-federal CV growth had fallen to only 4%; including federal IT reported only 1% growth.
- The Consulting segment simultaneously revealed a significant shortfall of more than 13% for the quarter against internal projections, contradicting repeated assurances that the outlook was "unchanged"
Calculate your potential recovery or call (212) 363-7500.
Alleged Consulting Segment Misrepresentation
The filing states that management maintained Consulting revenue guidance of "at least $575 million" through at least the November 4, 2025, earnings call, issuing implied fourth quarter guidance of "at least" $176 million against year-to-date performance of roughly 400 million. As set forth in the complaint, this characterization was misleading because the Company was allegedly already experiencing conditions that made its Consulting targets unreachable. The February 3, 2026, disclosure marked the first time Gartner acknowledged a significant Consulting shortfall against its own internal expectations.
"The complaint raises serious questions about whether investors received accurate information about Gartner's ability to sustain its contract value trajectory and meet consulting segment targets in the face of accelerating macroeconomic headwinds," stated Joseph E. Levi, Esq.
The action contends that DOGE -driven federal spending cuts, tariff-related cost-cutting by corporate clients, and lengthened purchase decision cycles were eroding Gartner's growth engine faster than management communicated to shareholders.
CONTACT:
SueWallSt
Joseph E. Levi, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004
Tel: (888) SueWallSt
Fax: (212) 363-7171
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SOURCE SueWallSt.com