Gartner's Growth Slows as UBS Downgrades and Slashes Price Target

According to the latest news, investment firm UBS has downgraded Gartner Inc. (NYSE: IT) from Buy to Neutral and sharply cut its price target for the company's stock. The move comes after Gartner reported a significant miss in its second-quarter contract value (CV) growth, leading UBS to reset its expectations for the company's performance in 2025 and 2026.

Specifically, UBS noted that Gartner's Q2 ex-Federal net contract value increase was just $8 million, far below the firm's $59 million estimate. This shortfall has resulted in a roughly 100 basis point reduction to Gartner's CV growth trajectory. As a result, UBS now expects Gartner to exit 2025 with a CV growth rate of only 2.5%, down from its previous forecast of 5.1%. The firm has also trimmed its 2026 organic growth projection for Gartner to 3%, down from 6% previously.

UBS attributed the softness in Gartner's performance to broader cuts in discretionary enterprise spending, rather than any disruption from AI. However, the analysts warned that a recovery in the company's growth is likely to take time. They also noted that their 2026 estimates for Gartner still embed a modest reacceleration, suggesting potential for further downside risk.

While Gartner remains well-positioned over the long term, UBS sees limited near-term upside potential as the company's growth continues to decelerate through the fourth quarter of 2025.