Financial Data and Key Metrics Changes - Third-quarter revenue was $1.5 billion, up 3% year-over-year as reported and 1% FX neutral [15] - Adjusted EPS was $2.76, up 10% from Q3 of last year [23] - Free cash flow was $269 million, compared to $265 million in Q3 2024 [24] - EBITDA was $347 million, up 2% as reported, with FX contributing almost 3 percentage points [22] Business Line Data and Key Metrics Changes - Insights revenue grew 5% year-over-year as reported and 4% FX neutral [16] - Global Technology Sales (GTS) contract value was $3.8 billion, up 2% year-over-year [18] - Global Business Sales (GBS) contract value was $1.2 billion, up 7% year-over-year [19] - Consulting revenue was $124 million, compared to $128 million in the year-ago period [20] Market Data and Key Metrics Changes - Contract value grew 3% year-over-year, with a 6% growth excluding the U.S. federal government [13] - Client retention rates improved from Q2 to Q3, indicating a positive trend in client engagement [36] - New business in the quarter was down about 4% year-over-year, excluding U.S. federal contracts [17] Company Strategy and Development Direction - The company is focused on leveraging AI to enhance productivity and effectiveness internally [12] - There is a clear path back to long-term, sustained double-digit growth over the medium term [12] - The company plans to continue repurchasing stock to create value for shareholders [25] Management's Comments on Operating Environment and Future Outlook - The macroeconomic environment remains dynamic, but the company has made operational adaptations that are yielding results [5] - The selling environment has improved modestly, with increased engagement and retention rates [33][36] - The company expects to accelerate contract value growth in 2026, aiming for high single-digit growth rates [60][62] Other Important Information - The company repurchased more than $1 billion of stock in the quarter, reducing share count by 6% year-over-year [5] - The insights segment remains the largest and most profitable operating segment, with almost 100% recurring subscription revenue [15] Q&A Session Summary Question: Can you comment on upselling and downselling trends? - The selling environment has improved modestly, with new sales to new enterprises performing well, but upselling existing enterprises has faced challenges [33] Question: How are tariff-impacted industries performing? - Non-tariff-affected industries continue to perform about 200 basis points faster in contract value growth compared to tariff-affected industries [39] Question: What drove the improvement in renewal rates? - The improvement is attributed to operational adaptations and reduced uncertainty in certain geographies, leading to better client decision-making [45] Question: What are your expectations for sales headcount growth in 2026? - The expectation is to grow headcount three to four points slower than expected contract value growth [54] Question: Can you elaborate on the pricing environment? - The bulk of the price increase globally went into effect on November 1st, with a normal increase of around 3-4% [99]

A few tech stocks that had previously led the S&P 500 index higher were under pressure last month.Ups and downs related to tariff threats and a potential interest rate reduction made August a positive month overall for the stock market. From the end of July through the closing bell on Aug. 29, the benchmark S&P 500 (^GSPC -0.64%) index gained 1.9%It was a positive month overall, but not for all members of the S&P 500. The three worst-performing stocks in the index sank by 23.5% or more during August.Company ...

Core Insights - Gartner's stock experienced a significant decline of 30.3% this week, contrasting with gains in the S&P 500 and Nasdaq-100 [1] - The company's Q2 earnings met Wall Street expectations, reporting earnings per share (EPS) of $3.11 on sales of $1.7 billion, alongside a stock repurchase of $274 million [2][3] - Concerns arise from a slowdown in contract growth, with total contract value increasing by only 4.9% year over year, indicating potential challenges for future growth [4] Company Developments - Gartner introduced an AI-powered research tool named "AskGartner," aimed at enhancing client support and addressing the growing demand for AI solutions [5] - The effectiveness of the "AskGartner" tool remains uncertain, especially as competition intensifies from AI-first companies and internal tools developed by other firms [5] - The company's stock is trading at one of its lowest multiples in decades, reflecting the adverse impact of AI trends and broader market conditions on its business model [6]

Core Viewpoint - Gartner's stock experienced a significant decline of 28% on August 5, 2025, resulting in a loss of half its market value since the start of the year, primarily due to disappointing revenue guidance despite beating revenue and growth expectations in its second quarter earnings report [2][3][8]. Financial Performance - Gartner reported second quarter 2025 revenue of $1.7 billion, reflecting a 5.7% increase and slightly exceeding Zacks Consensus Estimate [16]. - Adjusted earnings per share for Q2 were $3.53, up 9.6% and 4.4% above Zacks Consensus Estimate [16]. - The 2025 revenue forecast is $6.46 billion, which is $110 million below Zacks Consensus Estimate [16]. - Adjusted earnings per share guidance for 2025 is $11.75, which is 90 cents below Zacks Consensus Estimate [16]. Growth Challenges - The company significantly lowered its growth forecast for its core Insights business line, with contract value growth expectations dropping from 5.1% to 2.5%, which shocked investors and led to a downgrade by UBS [9][10]. - Management attributed the slowdown to macroeconomic pressures and client spending constraints, with clients reducing discretionary spending on IT research and advisory services [10][11]. - The rise of AI tools has led clients to develop in-house capabilities, reducing their reliance on Gartner's consulting and research services [11][12]. Management and Strategy Issues - During the investor conference call, Gartner's executives did not address competitive disadvantages or market share losses, which frustrated investors [4][12][13]. - The company's cultural barriers, including an elitist mentality and a high-pressure sales culture, may hinder its ability to adapt and implement necessary strategic changes [4][14][17]. - Gartner's management has been criticized for failing to provide a compelling vision for restoring growth in light of changing customer needs and competitive strategies [13][15]. Future Outlook - Wall Street analysts have set an average 12-month price target of $453.63 for Gartner, indicating an 86% upside potential [15]. - To revive growth, Gartner must shift its business model to promote client self-reliance, integrate AI into its services, and focus on specific areas of expertise rather than competing as a generalist [17].