Gartner Price Target Lowered to $140 by Wells Fargo as Iran Conflict Rattles Enterprise Spending

Core Viewpoint - Gartner's stock has experienced a significant decline, prompting Wells Fargo to lower its price target to $140, citing macroeconomic volatility due to the Iran conflict and a slowdown in contract value growth [2][6]. Financial Performance - Gartner's stock has fallen 63.31% over the past year, currently priced at $156.60, with a year-to-date decline of 36.15% and a 7.72% drop over the past week [2][4]. - The company's contract value growth has decreased from 7.3% in Q3 2024 to 3.0% in Q3 2025, indicating a pullback in enterprise clients' advisory commitments [3][7]. Segment Analysis - The Digital Markets segment reported a $150 million goodwill impairment and a 22.6% revenue decline year-over-year in Q3 2025, reflecting competitive pressure from AI-driven alternatives [3][13]. - Gartner's aggressive share repurchase of 4.0 million shares for $1.1 billion in Q3 2025 may provide long-term value if the core business stabilizes [13]. Market Outlook - Wells Fargo's bearish stance suggests that achieving the $140 price target would require continued deceleration in contract value growth and further softening in enterprise IT spending due to geopolitical uncertainty [6][9]. - The current market cap is approximately $11.29 billion, and reaching a $140 price would imply a market cap of about $9.9 billion, indicating a potential downside of roughly 11% from current levels [6][9].