Here’s Why Gartner (IT) Reduced Its Revenue Growth Guidance

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]