Truist Securities announced a marked reduction in its price target for Gartner (NYSE: IT), lowering the objective to $170.00 from $300.00 while keeping a Buy rating on the shares. The cut comes as the company contends with material share-price declines and softer contract-value trends.
Gartner shares have fallen 71.55% over the last 12 months and were trading at $152.03, a level far below the stock's 52-week peak of $544.93. Truist's reassessment follows the firm's review of Gartner's fourth-quarter contract value (CV) results, which Truist said were below expectations.
Analyst commentary and company signals
Truist analyst Jasper Bibb commented on Gartner's outlook, noting that management guidance for 2026 "suggests a relatively muted recovery in CV vs. the previously communicated trajectory." The firm also pointed to management's continued characterization of the sales backdrop as a challenging selling environment for Gartner's research and advisory services.
In addition, Truist flagged that Gartner has announced "fairly broad changes" to its Insights product offering. Those product adjustments were incorporated into Truist's view and contributed to the significant reduction in its price target, even as the firm maintained an overall positive stance on the equity.
Quarterly results and market reaction
Gartner reported fourth-quarter earnings for 2025 that topped analyst expectations, delivering earnings per share of $3.94 versus a forecasted $3.51. Despite the beat on EPS, the stock moved lower in pre-market trading following the report.
Other broker activity
RBC Capital also adjusted its view on Gartner recently, trimming its price target to $175 from $250 while keeping a Sector Perform rating. RBC attributed the change to concerns about moderating contract value growth, which the firm said slowed to 4% from 6% in the third quarter of 2025 when excluding government contracts. RBC further cited evidence of declining wallet retention and a mid-single-digit decline in new business as part of the challenging market dynamics for Gartner.
Valuation context
Despite the near-term headwinds spelled out by analysts and management, valuation metrics cited in market data show Gartner trading at a price-to-earnings ratio of 13.73 with a free cash flow yield around 11%, figures that some investors may interpret as signaling potential value at current levels.
Overall, Truist's large downward revision to its price target reflects a reassessment of Gartner's near-term contract-value trajectory, product changes within Insights, and the company’s description of a tough selling environment for its core advisory services, even as the firm stopped short of abandoning a constructive rating.