Valued at a market cap of $16.2 billion, Gartner, Inc. (IT) is a global research and advisory firm that provides insights, data, and support to leaders across various industries. Operating through its Research, Conferences, and Consulting segments, the company helps organizations make informed decisions and drive business performance. Shares of the Stamford, Connecticut-based company have significantly lagged behind the broader market over the past 52 weeks. IT stock has dropped 56.7% over this time frame ...

Core Insights - Madison Large Cap Fund underperformed the S&P 500 Index, decreasing by 2.2% in Q3 2025 compared to an 8.1% gain for the index, primarily due to a market focus on short-term profits [1] - Gartner, Inc. (NYSE:IT) was highlighted as a significant detractor in the fund's performance, with a one-month return of -7.33% and a 52-week loss of 58.48% [2][3] Company Performance - Gartner, Inc. reported revenue of $1.5 billion in Q3 2025, reflecting a 3% year-over-year increase, with a 1% increase when adjusted for foreign exchange [4] - The stock closed at $228.64 per share on November 6, 2025, with a market capitalization of $16.48 billion [2] Market Context - The decline in Gartner's stock was attributed to disappointing Q2 results and slower-than-expected growth, influenced by macroeconomic factors and potential AI disruption [3] - The company is not among the 30 most popular stocks among hedge funds, with 45 hedge fund portfolios holding its shares at the end of Q2 2025, down from 51 in the previous quarter [4] Investment Outlook - Despite acknowledging Gartner's potential, the fund believes that certain AI stocks present greater upside potential and lower downside risk [4] - The fund emphasizes Gartner's strong reputation and proprietary data as mitigating factors against AI disruption [3]

Core Insights - The slow-growth economic environment, influenced by tariff-related trade tensions, is the primary concern for enterprise risk leaders in Q3 2025 [1] - AI-related risks are rapidly increasing, with information governance risks rising to the second most cited concern and shadow AI moving to third place [2][3] Group 1: Emerging Risks - The top five emerging risks reflect concerns about a volatile low-growth macroeconomic environment and the disruptive nature of AI technology [4] - 72% of respondents believe timely action on risks is critical, yet only 15% feel confident in prioritizing which risks to address [5] Group 2: Risk Management Strategies - Gartner recommends that risk leaders establish impact thresholds across various dimensions, including regulatory, legal, reputational, and ESG factors [5] - Effective risk prioritization tactics are essential for enterprise risk management leaders to navigate conflicting signals and ensure timely stakeholder engagement [7]

Core Insights - Gartner, Inc. is a leading research and advisory company providing insights and tools for various sectors including IT, finance, HR, and customer service [1] - The company demonstrates effective capital management with a Return on Invested Capital (ROIC) of 24.87% and a Weighted Average Cost of Capital (WACC) of 8.07% [2][6] Capital Efficiency Comparison - Gartner's ROIC to WACC ratio is 3.08, indicating strong capital efficiency compared to its cost of capital [2] - CDW Corporation has a ROIC of 19.21% and a WACC of 7.30%, resulting in a ROIC to WACC ratio of 2.63, reflecting efficient capital use [3] - Mettler-Toledo International Inc. leads with a ROIC of 37.77% and a WACC of 9.74%, achieving the highest ROIC to WACC ratio of 3.88 among peers, indicating exceptional capital utilization [4] - Jack Henry & Associates has a ROIC to WACC ratio of 2.34, suggesting efficient capital use, while ANSYS, Inc. has a lower ratio of 0.88, indicating its returns do not cover its cost of capital [5][6]

Core Insights - Renaissance Investment Management's Q3 2025 "Large Cap Growth Strategy" underperformed compared to the Russell 1000 Growth and S&P 500 despite overall stock market gains [1] - Gartner, Inc. (NYSE:IT) was identified as the largest detractor from the portfolio performance in Q3 2025, with significant declines in its stock value over the past year [2][3] Performance Summary - The S&P 500 reached all-time highs in September, with a quarterly return of 8.1%, while the Russell 1000 Growth returned 10.5% [1] - Gartner, Inc. experienced a one-month return of -2.77% and a 52-week decline of 50.68%, closing at $255.58 per share with a market capitalization of $19.357 billion on October 27, 2025 [2] Company Analysis - Gartner, Inc. reported Q3 results that exceeded expectations, but its Contract Value (CV) revenue growth moderated more than anticipated due to a challenging sales environment influenced by tariffs and federal government expenditure delays [3] - Concerns are rising regarding the impact of Generative AI on Gartner's proprietary technology research and its potential to disintermediate the company's value [3] Hedge Fund Interest - Gartner, Inc. was held by 45 hedge fund portfolios at the end of Q2 2025, a decrease from 51 in the previous quarter, indicating a decline in popularity among hedge funds [4]

Group 1 - Conestoga Capital Advisors reported that equity markets reached new all-time highs in Q3 2025, but their Mid Cap Composite returned -3.2% net-of-fees, underperforming the Russell Midcap Growth Index which gained 2.8% [1] - The focus on high-quality, profitable companies by Conestoga struggled to keep pace with the risk-on market environment during the quarter [1] - Gartner, Inc. (NYSE:IT) was highlighted as a key stock, with a one-month return of 0.07% and a significant decline of 50.71% over the last 52 weeks, closing at $258.17 per share with a market capitalization of $19.553 billion on October 21, 2025 [2] Group 2 - Gartner, Inc. is recognized as a leading research and advisory firm, but its shares have lagged due to weak contract value for IT research services and concerns about its business model being threatened by AI deep research tools [3] - The number of hedge funds holding Gartner, Inc. decreased from 51 to 45 in the second quarter, indicating a decline in popularity among institutional investors [4] - While Gartner, Inc. is acknowledged for its investment potential, certain AI stocks are viewed as having greater upside potential and less downside risk [4]

Company Overview - Gartner, Inc. has a market cap of $17.9 billion and is a leading global research and advisory company providing insights and tools for business leaders across various sectors including IT, marketing, supply chain, finance, and human resources [1] Earnings Expectations - Analysts anticipate Gartner to report a fiscal Q3 profit of $2.41 per share, reflecting a decrease of 3.6% from $2.50 per share in the same quarter last year [2] - For fiscal 2025, the expected EPS is $12.19, down 13.5% year over year from $14.09 in fiscal 2024, but is projected to increase by 8.5% annually to $13.23 in FY2026 [3] Stock Performance - Gartner's stock has declined by 54.9% over the past 52 weeks, significantly underperforming the Technology Select Sector SPDR Fund's 24.8% increase and the S&P 500 Index's 14.8% rise during the same period [4] Analyst Ratings - Following a "Hold" rating from UBS analyst Joshua Chan, Gartner's shares dropped by 4.4% on October 7, with a price target set at $280, indicating cautious sentiment despite the company's strong market position [5] - Overall, Wall Street analysts maintain a "Moderate Buy" rating for Gartner, with 14 analysts covering the stock: five recommend "Strong Buy," eight suggest "Hold," and one advises "Strong Sell." The average analyst price target of $300.09 suggests a potential upside of 25.3% from current levels [6]

Core Insights - Forrester announced the winners of its 2025 Technology Awards for North America, recognizing the United States Department of the Navy, Takeda Pharmaceuticals, and Bank of America for their innovative technology strategies that drive business growth [1][2]. Group 1: Technology Strategy Impact Award - The United States Department of the Navy was awarded for its strategic alignment in deploying secure technologies, shifting from compliance-driven IT to mission-focused outcomes, and reducing delivery cycles from months to weeks through initiatives like the Innovation Adoption Kit and generative AI assistant DON GPT [3]. - Finalists for this award included CBRE and Verizon, highlighting the competitive landscape in technology strategy [3]. Group 2: Enterprise Architecture Award - Takeda Pharmaceuticals received recognition for its innovative Business Architecture Framework (BAF), which integrates various methodologies to drive transformation across its global operations, enhancing real-time governance and alignment with business strategy [4]. - The award also acknowledged Takeda's launch of an enterprise GenAI hub and the deployment of over 60 generative AI solutions, showcasing its commitment to digital transformation [4][5]. Group 3: Data & AI Impact Award - Bank of America was honored for its enterprise-wide AI strategy, which includes the in-house developed AI assistant Erica, achieving a 50% reduction in IT service desk calls and 90% internal adoption [6]. - The bank holds over 1,500 AI and machine learning patents, demonstrating its leadership in innovation and responsible AI practices [6]. Group 4: Event Information - The award recipients will share their success stories at the Technology & Innovation Summit North America, scheduled for November 2–5, 2025, in Austin, Texas [7].

Polen Capital, an investment management company, released its “Polen Focus Growth Strategy” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The equity market continued its strong performance in the third quarter of 2025, driven by enthusiasm for generative AI and strength in the semiconductor sector. In the quarter, the focus shifted to positive economic surprises, fiscal policy optimism, and better-than-expected corporate earnings. In the quarter, the strategy returned 3.34 ...

Core Viewpoint - Edelson Lechtzin LLP is investigating potential violations of federal securities laws involving Gartner, Inc. due to allegations of misleading business information provided to investors [1][3]. Company Overview - Gartner, Inc. is a research and advisory firm that offers insights, consulting, and business tools to assist companies in making informed decisions in the technology and IT sectors [2]. Allegations and Financial Impact - On August 5, 2025, Gartner reported a slowdown in its contract growth rate, leading to a decrease in its annual revenue forecast from $6.54 billion to $6.46 billion [3]. - The management attributed this downward adjustment to cost-cutting measures implemented to mitigate potential tariff risks [3]. Stock Market Reaction - Following the announcement of the revenue forecast adjustment, Gartner's stock price fell by $92.78 per share, or 27.55%, closing at $243.93 per share on August 5, 2025 [4].