Gartner, Inc. (IT) Faces Sales Challenges While Betting on Recovery

Core Viewpoint - Gartner, Inc. is currently facing significant challenges in sales and contract value growth, leading to multiple price target reductions by analysts while maintaining a long-term positive outlook for the company [1][2][5]. Group 1: Price Target Adjustments - Truist Securities has lowered its price target for Gartner from $300 to $170 while keeping a Buy rating, citing weaker-than-expected fourth-quarter contract value results and muted 2026 guidance [1]. - BMO Capital has also reduced its price target from $258 to $188, maintaining a Market Perform rating, as Gartner's shares have dropped 27.47% in the past week and 71.55% over the last year [3]. Group 2: Sales Challenges - Gartner's management is experiencing a difficult selling environment for its research and advisory services, with recent changes to its Insights product offering contributing to the reduced price targets [2]. - The company faces challenges in contract value growth due to federal government customer churn and a tough sales environment, despite achieving a margin-driven earnings beat supported by share buybacks [4]. Group 3: Future Outlook - Management has outlined a four-dimensional process to reinvigorate contract value growth, although it may take a couple of years to see full benefits [5]. - Gartner's 2026 guidance is described as "at least" in line but lighter than consensus expectations, with management anticipating an acceleration in contract value growth later in the year [5]. Group 4: Company Overview - Gartner, Inc. operates globally across the United States, Canada, Europe, the Middle East, Africa, and other international markets, conducting business through three segments: Research, Conferences, and Consulting [6].