Gartner Shares Slide as Forward Guidance Falls Short

Market participants expressed disappointment with Gartner Inc.'s latest financial outlook, overshadowing a recent quarterly earnings beat. The technology research and advisory firm issued its 2026 forecast alongside the publication of a major report on cybersecurity trends, but investor focus remained squarely on the company's cautious projections for the coming year.

For the fourth quarter of 2025, Gartner reported solid results. Adjusted earnings per share (EPS) came in at $3.94, surpassing the analyst consensus estimate of $3.51. Quarterly revenue saw a modest 2% year-over-year increase, reaching $1.8 billion.

However, the guidance for the full 2026 fiscal year failed to meet market expectations. Management projected adjusted EPS of at least $12.30, a figure that fell below the average analyst forecast of $13.52. The company anticipates revenue of at least $6.455 billion, representing approximately 2% currency-neutral growth. This conservative outlook, which implies a potential decline in adjusted profitability, has been cited by observers as the primary driver behind a recent correction in the share price.

CEO Cites a Shifting Sales Landscape

During a discussion with analysts, Chief Executive Officer Gene Hall pointed to a significantly more challenging sales environment. He noted that many corporate clients, responding to rapid technological change, are delaying approval for non-essential projects. While demand for analysis related to artificial intelligence (AI) remains strong, customers in other segments are exhibiting increased caution and postponing deal closures.

Should investors sell immediately? Or is it worth buying Gartner?

In response, Gartner is accelerating its own internal AI transformation. The company has fully launched its "Ask Gartner" platform, which handled over 500,000 client inquiries last year. A key question is whether efficiency gains from AI can offset softer demand elsewhere. The integration of AI-assisted tools has already reduced production time for core products like the "Magic Quadrants" by roughly 75%.

Capital Return and Contract Value in Focus

The company reaffirmed its commitment to shareholder returns, stating it plans to return $2.0 billion to investors in 2025 through share repurchases.

Separately, Gartner released its annual cybersecurity trends report, identifying the "chaotic proliferation" of AI and shifting geopolitics as principal drivers for the security industry. The rise of "Agentic AI," the report warns, is creating new attack surfaces that require advanced governance.

Looking ahead, market attention will center on the evolution of Gartner's Contract Value (CV) throughout 2026. Despite near-term pressures from the transition to AI-centric infrastructures, management expressed confidence. The long-term demand for its core "Business and Technology Insights" segment is described as remaining robust.