Gartner Down 71%. Forrester Worth $105M. What That Tells Us About B2B Spend Right Now.

Core Insights - Gartner and Forrester's recent Q4 2025 results indicate a significant slowdown in B2B marketing and IT spending, reflecting broader market challenges [1][7]. Financial Performance - Gartner reported Q4 revenue of $1.8 billion, a 2.2% year-over-year increase, with full-year revenue at $6.5 billion, up 4% but showing a deceleration from a 9.6% annualized growth over the past five years [4]. - Forrester's Q4 revenue was $101.1 million, down 6% year-over-year, with full-year revenue at $396.9 million, an 8% decline from $432.5 million in 2024 [4]. - Gartner's adjusted EPS fell 27.8% year-over-year to $3.94, while Forrester's market cap dropped to approximately $105 million, down from around $300 million a year ago [3][4]. Market Trends - Enterprise buying cycles have extended, with increased scrutiny and elevated deal approval authority leading to slower decision-making processes [8]. - Consulting services are experiencing significant declines, with Gartner's consulting revenue down 12.8% and Forrester's down 16% in Q4 [10]. - AI is both a threat and an opportunity, with Gartner producing over 6,000 AI-related research documents and Forrester generating over $5 million in bookings from its AI Access offering [12][14]. Event Segment Performance - Gartner's Conferences segment showed resilience, with a 13.9% year-over-year increase in revenue, while Forrester's events business declined by 29% [15]. Government Spending Impact - Both companies noted headwinds from U.S. federal government spending, with Gartner's contract value growth at 4% excluding federal contracts, indicating a structural shift in this market [16]. Valuation Metrics - Gartner's market valuation has dropped to approximately 1.8 times revenue, while Forrester's is at 0.25 times revenue, reflecting historically low multiples for recurring-revenue businesses [18]. Strategic Shifts - The B2B landscape is undergoing a reset, with budgets being reallocated from traditional consulting and advisory services to AI-driven tools and platforms that offer measurable outcomes [19].