Gartner (IT) Declined Despite Good Results

Renaissance Investment Management, an investment management company, released its Q3 2025 “Large Cap Growth Strategy” investor letter. A copy of the letter can be downloaded here. Stock prices continued to rally in the third quarter, with the S&P 500 climbing to all-time highs during September. The Russell 1000 Growth returned 10.5% and the S&P 500 returned 8.1% in the quarter. However, the strategy underperformed both the Russell 1000 Growth benchmark and the S&P 500. For more information on the fund’s top picks in 2025, please check its top five holdings.

In its third-quarter 2025 investor letter, Renaissance Large Cap Growth Strategy highlighted stocks such as Gartner, Inc. (NYSE:IT). Established in 1979, Gartner, Inc. (NYSE:IT) is a research and advisory company that operates through research, conferences, and consulting segments. The one-month return of Gartner, Inc. (NYSE:IT) was -2.77%, and its shares lost 50.68% of their value over the last 52 weeks. On October 27, 2025, Gartner, Inc. (NYSE:IT) stock closed at $255.58 per share, with a market capitalization of $19.357 billion.

Renaissance Large Cap Growth Strategy stated the following regarding Gartner, Inc. (NYSE:IT) in its third quarter 2025 investor letter:

“On the negative side, Gartner, Inc. (NYSE:IT) was the largest detractor from portfolio performance in the third quarter. The company reported third quarter results that exceeded expectations. However, Contract Value (CV) revenue growth moderated more than expected, as the sales environment for tech vendors experienced a slowdown due to tariffs and delays in federal government expenditures. In addition, there are increasing concerns surrounding the impact of Generative AI and whether it can disintermediate the value of Gartner’s proprietary technology research.”

Is Fidelity Select Health Care Svcs Port (FSHCX) the Worst Performing Mutual Fund in 2024?

Gartner, Inc. (NYSE:IT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 45 hedge fund portfolios held Gartner, Inc. (NYSE:IT) at the end of the second quarter, compared to 51 in the previous quarter. While we acknowledge the risk and potential of Gartner, Inc. (NYSE:IT) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Gartner, Inc. (NYSE:IT) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Gartner, Inc. (NYSE:IT) and shared the list of Conestoga Capital Advisors’ views on the company. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.

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