Gartner Stock: Is IT Underperforming the Technology Sector?

Company Overview - Gartner, Inc. is a research and advisory company based in Stamford, Connecticut, operating through Research, Conferences, and Consulting segments with a market cap of $17.6 billion [1][2] Stock Performance - Gartner's stock prices have declined 58.7% from its all-time high of $584.01 on February 4, and 41.7% over the past three months, underperforming the Technology Select Sector SPDR Fund's (XLK) 12.8% increase during the same period [3] - Year-to-date, Gartner's stock is down 50.2% and 51.8% over the past year, significantly lagging behind XLK's gains of 16.6% in 2025 and 24.6% over the past year [4] Financial Performance - In Q2 2025, Gartner's revenues grew 5.7% year-over-year to $1.7 billion, exceeding market expectations by 66 basis points, while adjusted EPS increased 9.6% year-over-year to $3.53, surpassing consensus estimates by 4.4% [5] Market Reaction - Following the earnings release on August 5, Gartner's stock plummeted 27.6% and remained in the red for four subsequent trading sessions due to a significant reduction in its full-year 2025 growth guidance [6] - The management attributed the growth cut to the macro environment, but analysts believe Gartner has not adequately addressed increasing competition and the threat of AI to its business model [6] Peer Comparison - Gartner has underperformed compared to its peer, CDW Corporation, which saw a 4.8% decline year-to-date and a 23.2% drop over the past year [7]