/Gartner%2C%20Inc_%20logo%20on%20phone%20and%20website-by%20T_Schneider%20via%20Shutterstock.jpg)
Gartner, Inc. (IT) is a leading global research and advisory company headquartered in Stamford, Connecticut. With a market cap of $18.3 billion, the company provides actionable insights, expert guidance, and tools to executives and organizations across IT, supply chain, marketing, HR, and other functions to support strategic decision-making and growth.
The IT service provider has significantly underperformed the broader market over the past year. Gartner’s stock has dropped 49.6% over the past 52 weeks and 51.2% on a YTD basis, compared to the S&P 500 Index’s ($SPX) 15.1% gains over the past year and 9.9% rise in 2025.
Narrowing the focus, Gartner has also underperformed the industry-focused Vanguard Information Technology Index Fund ETF’s (VGT) 21.2% surge over the past year and 11.9% rise on a YTD basis.
On Aug. 5, Gartner released its Q2 2025 and its shares dipped 27.6%. Gartner beat expectations with adjusted EPS of $3.53 and revenue of $1.7 billion, supported by a 5% rise in contract value and $347 million in free cash flow, while returning $274 million to shareholders via buybacks. The company also highlighted the launch of AskGartner, an AI-driven tool improving research delivery efficiency.
The stock plunged after management highlighted recession-like CEO sentiment, with 78% of executives cutting costs, leading to weaker demand for Gartner’s services. Slowing contract growth of just 4.9%, lowered full-year revenue guidance, and U.S. federal contract cancellations further pressured investor confidence.
For the full fiscal 2025, ending in December, analysts expect Gartner to report a 13% year-over-year decline in adjusted EPS to $12.64. However, the company has a robust earnings surprise history. It has surpassed the Street’s bottom-line estimates in each of the past four quarters.
Among the 11 analysts covering the IT stock, the consensus rating is a “Moderate Buy.” That’s based on four “Strong Buys,” six “Holds,” and one “Strong Sell.”
This configuration is less bullish than a month ago, when five analysts had suggested a “Strong Buy” for the stock.
On Aug. 6, Wells Fargo analyst Jason Haas reiterated an “Underweight” rating on Gartner and cut the price target to $225 from $345, signaling a more cautious outlook on the stock.
Gartner’s mean price target of $304.78 represents a 25.4% premium to current price levels, while the street-high target of $457 suggests an 88% upside potential.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
