Investors might want to bet on Gartner (IT) , as it has been recently upgraded to a Zacks Rank #2 (Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.Since a changing earnings picture i ...

Core Insights - Gartner, Inc. is a research and advisory company founded in 1979, with a market capitalization of $17.1 billion, and is expected to release its Q4 fiscal 2025 earnings report soon [1] Financial Performance - Analysts anticipate Gartner to report a profit of $3.51 per share on a diluted basis for Q4 fiscal 2025, which represents a decline of 35.6% from $5.45 per share in the same quarter last year [2] - For the current fiscal year, EPS is expected to be $12.79, down 9.2% from $14.09 in fiscal 2024, but is projected to rise by approximately 6.9% year over year to $13.67 in fiscal 2026 [3] Stock Performance - Gartner's shares have decreased by 50.7% over the past 52 weeks, significantly underperforming the S&P 500 Index, which rose by 16.2%, and the State Street Technology Select Sector SPDR ETF, which returned 22.7% during the same period [4] - On November 5, Gartner's stock increased by 4.4% following the release of better-than-expected Q3 fiscal 2025 earnings, with revenue reported at $1.52 billion, aligning with Wall Street estimates, and adjusted EPS for the quarter at $2.76, surpassing forecasts [5] Analyst Ratings - The consensus opinion among analysts is fairly bullish, with a "Moderate Buy" rating overall; out of 14 analysts, four recommend a "Strong Buy," nine suggest a "Hold," and one advises a "Strong Sell" [6] - The average analyst price target for Gartner is $276.45, indicating a potential upside of 15.5% from current levels [6]

Group 1: Fund Performance - Artisan Mid Cap Value Fund's Investor Class returned 0.97%, Advisor Class returned 0.98%, and Institutional Class returned 0.97% in Q3 2025, compared to a 6.18% return for the Russell Midcap Value Index [1] - The equity markets continued to rally in Q3 2025, driven by strong corporate earnings, rising AI capital expenditures, and expectations for economic support from US fiscal policy and lower interest rates [1] Group 2: Gartner, Inc. Overview - Gartner, Inc. (NYSE:IT) is a research and advisory company that operates through research, conferences, and consulting segments, with a market capitalization of $17.952 billion as of January 2, 2026 [2] - Gartner's one-month return was 4.29%, but its shares lost 51.80% of their value over the last 52 weeks [2] Group 3: Investment Insights on Gartner, Inc. - Artisan Mid Cap Value Fund initiated new positions in Gartner, Inc. and noted that the company helps corporate executives make better strategic decisions [3] - Gartner's research business has faced cyclical headwinds, including issues from the US federal government and tariffs, but the long-term threat from AI is not fully discounted [3] - Gartner consistently generates free cash flow and has a clean balance sheet, with a reasonable valuation reflecting an 8% free cash flow yield, the highest since 2009 [3] Group 4: Hedge Fund Interest and Revenue - Gartner, Inc. was held by 42 hedge fund portfolios at the end of Q3 2025, down from 45 in the previous quarter [4] - The company reported revenue of $1.5 billion in Q3 2025, reflecting a 3% year-over-year increase [4]

Group 1 - SGA's U.S. Large Cap Growth Strategy reported a portfolio return of -1.3% (Gross) and -1.4% (Net) in Q3, underperforming the Russell 1000 Growth Index which returned 10.5% and the S&P 500 Index which returned 8.1% [1] - The investment objective of SGA is to focus on high-quality growth businesses expected to achieve consistent mid-teens earnings growth, stable revenue, and cash flow [1] - In Q3, lower-quality stocks and cyclical industries outperformed, adversely affecting SGA's investment style [1] Group 2 - Gartner, Inc. (NYSE:IT) was highlighted in SGA's third-quarter investor letter, with a one-month return of 8.69% and a 52-week loss of 47.80% [2] - As of December 31, 2025, Gartner, Inc. had a stock price of $252.28 and a market capitalization of $19.107 billion [2] - Gartner's contract value growth slowed to 5% from 7% in Q1, leading to a reduction in revenue growth guidance for the year [3] - The slowdown in growth was attributed to the impact of DOGE on U.S. federal government customers and tariff uncertainties affecting decision-making and budget pressures [3] - A new market narrative suggested that Gartner's value proposition could be disrupted by generative AI, further impacting its stock performance [3]

Core Insights - Gartner (IT) shares have increased by 9.5% over the past month, outperforming the industry growth of 5.9% [1] - The company has a Growth Score of A, indicating strong financial metrics and sustainable growth, with revenue growth projected at 3.5% in 2025 and 3.3% in 2026 [1] Revenue Growth Drivers - IT's revenue growth is significantly supported by its technologically advanced research segment, which offers essential insights and decision-support solutions [2] - The acquisition of CEB Inc. in 2017 has strengthened Gartner's market position by enhancing its research and advisory services [2] Competitive Advantages - The company is advancing its AI-driven tool, AskGartner, which provides quick access to in-depth business and technology insights, leveraging a vast proprietary data pool [3] - IT creates substantial client value through its Conferences, such as the recent 35th Annual IT Symposium/Xpo, which attracted over 7,000 technology leaders [4] Shareholder Value Enhancement - The company has consistently engaged in share buybacks, repurchasing 7.3 million shares for $1.7 billion in 2021, 3.8 million shares for $1 billion in 2022, 3.9 million shares for $600 million in 2023, and 1.6 million shares for $700 million in 2024 [5] Current Financial Position - IT's current ratio stands at 0.88, which is below the industry average of 1.19, indicating potential challenges in meeting short-term obligations [6]

Core Insights - TCW Concentrated Large Cap Growth Fund reported a return of +4.11% in Q3 2025, underperforming the Russell 1000 Growth Index which returned +10.51% [1] Company Overview - Gartner, Inc. (NYSE:IT) is a research and advisory company established in 1979, operating through research, conferences, and consulting segments [2] - As of December 24, 2025, Gartner's stock closed at $251.18 per share, with a market capitalization of $19.023 billion [2] Financial Performance - Gartner reported revenue of $1.5 billion in Q3 2025, reflecting a year-over-year increase of 3% as reported and 1% on a foreign exchange neutral basis [4] Investment Analysis - Gartner's shares dropped following disappointing quarterly results, despite exceeding consensus estimates; growth excluding U.S. Federal business decelerated, and management lowered forward guidance [3] - Forward guidance now anticipates Contract Value (CV) growth to decelerate from mid-single-digit to low single-digit growth [3] - Approximately 35% to 40% of Gartner's research contract value is in tariff-impacted industries, which are implementing cost-cutting measures and experiencing delayed sales cycles [3] - The rise of AI is disrupting many end markets, impacting Gartner's Business Model Advantage (BMA) and potentially shrinking its Total Addressable Market (TAM) [3] - Due to these factors, the fund decided to completely exit its position in Gartner [3] Hedge Fund Interest - Gartner, Inc. was held by 42 hedge fund portfolios at the end of Q3 2025, a decrease from 45 in the previous quarter [4] - The company is not listed among the 30 Most Popular Stocks Among Hedge Funds [4]

Core Viewpoint - The stock market is expected to achieve another double-digit percentage gain in 2025, with the S&P 500 index showing a year-to-date gain of 16.81% as of December 5, despite significant declines in several individual stocks [1]. Group 1: Worst-Performing Stocks - Fiserv (FISV) has seen a decline of approximately 70%, attributed to a drastic cut in its full-year revenue forecast and slowing growth in its merchant-services segment [3]. - The Trade Desk (TTD) is down approximately 67%, facing decreased revenues due to competition from major players like Amazon, leading investors to view the stock as overvalued [4]. - Deckers Outdoor (DECK) has dropped around 57%, with slowing growth expectations and pressure on discretionary consumer spending impacting its well-known brands, UGG and Hoka [5]. - Gartner (IT) is down approximately 52%, with its valuation at $17 billion, facing cyclical pressure as companies reduce spending on advisory services during economic uncertainty [6].

Core Insights - The year 2026 is anticipated to be a balancing act between spending and cost-cutting, as indicated by a recent survey of CFOs [1][2] Group 1: Cost Optimization - 56% of CFOs identified "achieving enterprise-wide cost optimization targets" as a top priority for the next six months [2] - True cost optimization involves redeploying savings from cost cuts into growth initiatives rather than merely reducing expenses [4] - The emphasis on cost optimization carries risks, as unsustainable cuts can negatively affect stock prices, leading to skepticism from investors [5] Group 2: Growth Opportunities - 47% of CFOs ranked "allocating capital to new growth opportunities" among their top five urgent action items [2] - There is a tension between cost management and growth goals, with expectations for CFOs to maintain cost optimization efforts while pursuing growth [3] Group 3: Financial Forecasting - 51% of CFOs plan to focus on "improving financial forecast accuracy and quality" as a key action item in the coming months [5] Group 4: Artificial Intelligence - 39% of CFOs included "accelerating AI use in the finance function" in their top five action items, while 33% prioritized "driving enterprise AI investment impact" [6] - Confidence in achieving meaningful AI outcomes is low, with only 36% of CFOs feeling assured about the potential impact of AI initiatives [6]

Core Insights - Rockwell Automation, Inc. has been recognized across 20 Gartner Hype Cycles for 2025, indicating a significant acknowledgment of its innovation and technology leadership in various industries [1][3] Company Overview - Rockwell Automation is the world's largest company focused on industrial automation and digital transformation, employing approximately 26,000 individuals across more than 100 countries as of fiscal year end 2025 [6] - The company aims to connect operations, people, and technology to enhance productivity and sustainability [6] Gartner Hype Cycles - The Gartner Hype Cycles provide a visual representation of the maturity and adoption of technologies, helping businesses understand how these technologies can address real problems and create new opportunities [2] - Rockwell Automation's inclusion in multiple Hype Cycles reflects its commitment to advancing intelligence, connectivity, and security in industrial operations [3] Specific Hype Cycles - Rockwell Automation is mentioned in various Hype Cycles for 2025, including: - Hype Cycle for Process Manufacturing Technologies - Hype Cycle for Artificial Intelligence - Hype Cycle for Cyber-Physical Systems Security - Hype Cycle for Supply Chain Execution and Logistic Technologies - Hype Cycle for Digital Grid [5]

Group 1: Investment Performance - TimesSquare Capital's U.S. Focus Growth Strategy achieved a gross return of 4.00% and a net return of 3.78% in Q3 2025, outperforming the Russell Midcap Growth Index which returned 2.78% [1] - All major asset classes posted positive returns in Q3 2025, except for fixed income assets outside the US [1] Group 2: Gartner, Inc. Overview - Gartner, Inc. (NYSE:IT) reported a revenue of $1.5 billion in Q3 2025, reflecting a year-over-year increase of 3% and a 1% increase on a foreign exchange neutral basis [4] - The stock of Gartner, Inc. closed at $233.89 per share on December 12, 2025, with a market capitalization of $17.714 billion [2] Group 3: Investment Strategy and Positioning - TimesSquare Capital prefers critical system providers and specialized component designers within the Information Technology sector, focusing on companies that improve productivity and efficiency [3] - Despite Gartner, Inc. reporting revenue and earnings above estimates, a key contract value metric fell short, leading to an 18% decline in its stock price, prompting TimesSquare to liquidate its position [3] - The number of hedge funds holding Gartner, Inc. decreased from 45 to 42 in Q3 2025, indicating a decline in popularity among institutional investors [4]