Gartner (IT) Fell Following Weak Results

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]