Gartner, Inc. (IT) Faces Sales Challenges While Betting on Recovery

Gartner, Inc. (NYSE:IT) is one of the best affordable tech stocks to buy right now. On February 6, Truist Securities sharply lowered its price target on Gartner, Inc. (NYSE:IT) to $170 from $300 while maintaining a Buy rating. The downgrade followed weaker-than-expected fourth-quarter contract value (CV) results and muted 2026 guidance, suggesting a slower recovery than previously anticipated.

Analyst Jasper Bibb highlighted that Gartner’s management continues to face a difficult selling environment for its research and advisory services and noted that recent broad changes to its Insights product offering contributed to the reduced target, even as the firm maintained a positive long-term outlook.

That same day, BMO Capital also cut its price target on Gartner to $188 from $258, maintaining a Market Perform rating. Gartner’s shares have been under heavy pressure, dropping 27.47% in the past week and 71.55% over the last year.

BMO pointed out that while Gartner delivered a margin-driven earnings beat aided by share buybacks, contract value growth remains challenged by federal government customer churn and a tough sales environment. The company’s aggressive repurchase program has supported earnings per share of $11.54 and a P/E ratio of 13.73, but CV growth remains the key concern.

Management has outlined a four-dimensional process to reinvigorate contract value growth, though BMO noted it may take a couple of years to see full benefits. Gartner’s 2026 guidance was described as “at least” in line but lighter than consensus expectations, with management anticipating acceleration in CV growth later in the year. BMO reduced its estimates alongside the price target cut, marking another downward revision for the research and advisory firm as it works through a challenging environment.

Gartner, Inc. (NYSE:IT) is a global research and advisory firm operating across the United States, Canada, Europe, the Middle East, Africa, and other international markets. The company conducts its business through three segments: Research, Conferences, and Consulting.

While we acknowledge the potential of IT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 10 Best Affordable Long Term Stocks to Buy According to Hedge Funds and 7 Best Used Car Stocks To Buy According to Hedge Funds.

Disclosure: None. This article is originally published at Insider Monkey.