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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.
