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    A Look At Gartner (IT) Valuation After Guidance Cut And Contract Value Slowdown

    Simply Wall St·01/05/2026 08:24:31
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    Gartner (IT) is back in focus after management lowered revenue growth guidance, citing slower contract value growth, tariff related decision delays, budget pressures, and fresh investor questions around the impact of generative AI on its research and advisory model.

    See our latest analysis for Gartner.

    The guidance cut and contract value slowdown have already affected sentiment, with a 1 day share price return of a 6.04% decline and a 7 day share price return of a 6.61% decline. The 1 year total shareholder return of a 51.80% decline contrasts with a still positive 5 year total shareholder return of 41.78%, suggesting long term holders have gains but recent momentum has faded.

    If this kind of reset in expectations has you reassessing tech research names, it could be a good moment to scan high growth tech and AI stocks for other potential ideas in the sector.

    With the stock down sharply over 1 year but still ahead over 5 years, and trading at a discount to some analyst targets and intrinsic value estimates, investors now have to ask: is this a reset worth buying, or is the market already pricing in Gartner’s future growth?

    Most Popular Narrative: 16.5% Undervalued

    Gartner's most followed narrative places fair value around US$283.73 per share, compared with the last close of US$237.03. This frames the stock as undervalued on that basis.

    Gartner's strong free cash flow generation and disciplined capital allocation (including sustained share repurchases and targeted M&A) are set to enhance EPS growth and resilience, even during short-term revenue slowdowns. This is viewed as supporting long-term shareholder value as underlying secular demand trends recover.

    Read the complete narrative.

    Curious what earnings path is being priced in here? The narrative leans on moderate revenue growth, slimmer margins, and a richer future P/E multiple to reach that fair value mark.

    Result: Fair Value of $283.73 (UNDERVALUED)

    Have a read of the narrative in full and understand what's behind the forecasts.

    However, the story could look very different if generative AI tools start replacing paid research or if prolonged client cost cutting keeps contract value growth under pressure.

    Find out about the key risks to this Gartner narrative.

    Build Your Own Gartner Narrative

    If you see the data differently or prefer to stress test the assumptions yourself, you can create a fresh Gartner storyline in minutes using Do it your way.

    A great starting point for your Gartner research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

    Looking for more investment ideas?

    If Gartner has you rethinking your portfolio, do not stop here. Fresh opportunities often sit just outside your current watchlist, waiting for you to notice.

    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.