Company Overview - Gartner, Inc. (NYSE:IT) is a research and advisory company that provides subscription-based insights, expert access, consulting services, and executive conferences [2] Recent Performance - Gartner was noted as the fifth worst performer in the S&P 500 in 2025, with a decline of almost 48% last year [2] - The company has faced challenges due to the rise of AI, which allows businesses to access information independently, reducing the need for Gartner's research services [2] Market Sentiment - Jim Cramer expressed concerns about Gartner's recent performance and the competitive threat posed by AI advancements, indicating a lack of confidence in the stock's recovery [1][2]

Core Insights - SGA's Emerging Markets Growth Strategy experienced a significant divergence from the market in Q4 2025, with a portfolio return of 0.8% (Gross) and 0.6% (Net), compared to the MSCI EM Net TR Index return of 4.7% and the MSCI EM Growth Net TR Index return of 3.3% [1] - For the full year 2025, the portfolio achieved returns of 23.8% (Gross) and 22.8% (Net), lagging behind the indexes which returned 33.6% and 34.3% respectively [1] - The portfolio anticipates annual revenue growth of 13% and earnings growth of 16% over the next three years [1] Company Specifics - Gartner, Inc. (NYSE:IT) was highlighted in SGA's Q4 2025 investor letter, with a one-month return of -31.25% and a 52-week loss of 69.19% [2] - As of February 13, 2026, Gartner, Inc. had a stock price of $158.58 and a market capitalization of $11.17 billion [2] - SGA engaged with Gartner's Lead Independent Director and CFO regarding governance matters, including the Chairman/CEO split and executive compensation metrics [3]

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].

Group 1 - Baron Partners Fund achieved a return of 19.07% in Q4 2025, significantly outperforming the Russell Midcap Growth Index, which returned -3.70%, and the Russell 3000 Index, which returned 2.40% [1] - For the calendar year 2025, the Fund returned 24.86%, compared to 8.66% for the Russell Midcap Growth Index and 17.15% for the Russell 3000 Index, indicating strong long-term performance [1] - The Fund focuses on long-term investments in a non-diversified portfolio of well-managed growth businesses at attractive prices across various market caps [1] Group 2 - Gartner, Inc. (NYSE:IT) experienced a one-month return of -33.08% and a 52-week decline of 68.88%, with a market capitalization of $12.109 billion as of February 10, 2026 [2] - The decline in Gartner's contract value (CV) growth is attributed to cost-cutting measures in the U.S. public sector, which constitutes about 5% of its revenue [3] - The reduction in contract renewals is viewed as unsustainable, with expectations that many contracts will be reinstated in the coming quarters and years [3]

Financial Performance - Gartner's Q4 2025 revenue increased by 2% year over year, reaching $1.75 billion, aligning with analyst expectations [2] - Adjusted earnings for Q4 2025 fell by 28% to $3.94 per diluted share, surpassing the Street's forecast of $3.51 per share [2] Future Projections - Management anticipates 2026 sales of at least $6.46 billion, which is 0.6% lower than the full-year 2025 results [3] - Adjusted earnings are projected at $12.30 per share for 2026, representing a 6.6% decline from the $13.17 per share earned in 2025 [3] - Analyst consensus estimates for full-year 2026 earnings are approximately $13.48 per share on revenues near $6.7 billion [3] Stock Performance and Valuation - Gartner's stock has decreased by 71% over the past 52 weeks, trading at low valuation ratios of 13.8 times trailing earnings and 9.3 times free cash flow [5] - The percentage of Gartner shares on loan to short-sellers is increasing, indicating a rising trend among short-sellers despite the stock's decline [5] Market Conditions - The demand for business advice is challenging in the current economic climate, with clients having access to artificial intelligence tools [6] - Gartner needs to demonstrate its value through enhanced services amidst macroeconomic challenges, which may require time to adjust its marketing strategy [6]

Group 1: Fund Performance - Oakmark Global Fund delivered a return of 5.23% in the fourth quarter of 2025, outperforming the MSCI World Index's gain of 3.12% [1] - The fund's objective is long-term capital appreciation through investments in a diverse group of U.S. and non-U.S. companies, with an all-cap mandate allowing investment across all market-cap companies [1] Group 2: Gartner, Inc. Overview - Gartner, Inc. (NYSE:IT) is a global leader in research services, established in 1979, operating through research, conferences, and consulting segments [2][3] - The stock price of Gartner, Inc. closed at $235.79 per share on January 13, 2026, with a market capitalization of $17.86 billion [2] - Gartner, Inc. reported revenue of $1.5 billion in the third quarter of 2025, reflecting a year-over-year increase of 3% [4] Group 3: Investment Perspective on Gartner, Inc. - Oakmark Global Fund views Gartner as well-positioned to reaccelerate organic growth due to high customer engagement and opportunities to sell to new and existing customers [3] - Concerns regarding AI-related disruption affecting Gartner's stock price are considered overstated by the fund [3] - Gartner, Inc. is not among the 30 most popular stocks among hedge funds, with 42 hedge fund portfolios holding its shares at the end of the third quarter, down from 45 in the previous quarter [4]

Core Insights - Forrester forecasts that automation and AI will have a modest impact on jobs through 2030, predicting that AI could account for 6% of total US job losses, equating to 10.4 million roles [1][2] - The report emphasizes that rather than eliminating jobs, AI will augment 20% of jobs over the next five years, highlighting the need for businesses to invest in employee training and upskilling [1][2] Group 1: Job Impact and Predictions - Over-automation due to AI hype can lead to costly pullbacks and damaged reputations, with over half of layoffs attributed to AI likely to be reversed as companies face operational challenges [2][4] - AI's influence on job categories is uneven, with junior positions, software developers, and customer service representatives facing the most pressure [4] Group 2: Strategic Recommendations - Organizations should prioritize governance and invest in their workforce, treating AI as a tool to enhance human talent rather than a replacement [3][4] - To maximize AI investments, companies must focus on employee AI skill development and ethical use of AI, measuring readiness through technology change quotient and artificial intelligence quotient [4]

Core Insights - Gartner, Inc. is a research and advisory company founded in 1979, with a market capitalization of $17.1 billion, and is expected to release its Q4 fiscal 2025 earnings report soon [1] Financial Performance - Analysts anticipate Gartner to report a profit of $3.51 per share on a diluted basis for Q4 fiscal 2025, which represents a decline of 35.6% from $5.45 per share in the same quarter last year [2] - For the current fiscal year, EPS is expected to be $12.79, down 9.2% from $14.09 in fiscal 2024, but is projected to rise by approximately 6.9% year over year to $13.67 in fiscal 2026 [3] Stock Performance - Gartner's shares have decreased by 50.7% over the past 52 weeks, significantly underperforming the S&P 500 Index, which rose by 16.2%, and the State Street Technology Select Sector SPDR ETF, which returned 22.7% during the same period [4] - On November 5, Gartner's stock increased by 4.4% following the release of better-than-expected Q3 fiscal 2025 earnings, with revenue reported at $1.52 billion, aligning with Wall Street estimates, and adjusted EPS for the quarter at $2.76, surpassing forecasts [5] Analyst Ratings - The consensus opinion among analysts is fairly bullish, with a "Moderate Buy" rating overall; out of 14 analysts, four recommend a "Strong Buy," nine suggest a "Hold," and one advises a "Strong Sell" [6] - The average analyst price target for Gartner is $276.45, indicating a potential upside of 15.5% from current levels [6]

Group 1: Fund Performance - Artisan Mid Cap Value Fund's Investor Class returned 0.97%, Advisor Class returned 0.98%, and Institutional Class returned 0.97% in Q3 2025, compared to a 6.18% return for the Russell Midcap Value Index [1] - The equity markets continued to rally in Q3 2025, driven by strong corporate earnings, rising AI capital expenditures, and expectations for economic support from US fiscal policy and lower interest rates [1] Group 2: Gartner, Inc. Overview - Gartner, Inc. (NYSE:IT) is a research and advisory company that operates through research, conferences, and consulting segments, with a market capitalization of $17.952 billion as of January 2, 2026 [2] - Gartner's one-month return was 4.29%, but its shares lost 51.80% of their value over the last 52 weeks [2] Group 3: Investment Insights on Gartner, Inc. - Artisan Mid Cap Value Fund initiated new positions in Gartner, Inc. and noted that the company helps corporate executives make better strategic decisions [3] - Gartner's research business has faced cyclical headwinds, including issues from the US federal government and tariffs, but the long-term threat from AI is not fully discounted [3] - Gartner consistently generates free cash flow and has a clean balance sheet, with a reasonable valuation reflecting an 8% free cash flow yield, the highest since 2009 [3] Group 4: Hedge Fund Interest and Revenue - Gartner, Inc. was held by 42 hedge fund portfolios at the end of Q3 2025, down from 45 in the previous quarter [4] - The company reported revenue of $1.5 billion in Q3 2025, reflecting a 3% year-over-year increase [4]

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]