Gartner (IT) Slid on Weak Business Outlook

Core Insights - The Carillon Scout Mid Cap Fund's third-quarter 2025 investor letter indicates positive returns for the Russell Midcap Index, driven by strong corporate earnings, AI infrastructure momentum, and U.S. Federal Reserve interest rate expectations [1] Company Overview - Gartner, Inc. (NYSE:IT) is a leading research and advisory firm that provides insights and tools for business and technology decision-making [3] - As of December 02, 2025, Gartner's stock closed at $228.62 per share, with a market capitalization of $17.315 billion [2] Financial Performance - Gartner, Inc. reported revenue of $1.5 billion for the third quarter of 2025, reflecting a 3% year-over-year increase and a 1% increase on a foreign exchange neutral basis [4] Market Sentiment - Gartner's stock experienced a one-month return of -3.58% and a significant 56.25% decline over the past 52 weeks [2] - The company faced a sell-off due to a weak business outlook and concerns over AI potentially disrupting its traditional research solutions [3] Investment Considerations - The fund's analysis suggests that while Gartner has investment potential, certain AI stocks may offer greater upside and lower downside risk [4] - The shift in information consumption towards AI-driven interactions poses a significant business risk to Gartner, indicating a need for strategic adaptation [3]