We recently published 17 Stocks Jim Cramer Talked About. Gartner, Inc. (NYSE:IT) is one of the stocks that Jim Cramer talked about.
Gartner, Inc. (NYSE:IT) is one of the largest information technology services firms in the world. Its shares are down by 69% over the past year and by 33% year-to-date following a major selloff on February 3rd. After the selloff, Truist slashed Gartner, Inc. (NYSE:IT)’s share price target to $170 from $300 and kept a Buy rating on the shares. The services firm’s Insights product and services and advisory businesses were at the center of the coverage, as Truist commented that it was operating in a difficult market environment for these products. BMO Capital also cut Gartner, Inc. (NYSE:IT)’s share price target on the same day. It reduced it to $188 from $258 and kept a Market Perform rating. A difficult market environment and contract churn, particularly from the government, influenced BMO’s opinion. Cramer commented on the impact of AI on Gartner, Inc. (NYSE:IT)’s business:
“And then Gartner, they’re saying, listen they do the magic quadrant, how about if we measure the magic quadrant versus your own. Those were the two uses cases.”
Baron Partners Fund discussed Gartner, Inc. (NYSE:IT) in its fourth quarter 2025 investor letter:
“Gartner, Inc. (NYSE:IT), a provider of syndicated research, declined following decelerating contract value (CV) growth. We attribute most of the slowdown in CV growth to cost cutting in the U.S. public sector, which is around 5% of revenue. Industries that are dependent on public sector funding, such as education, also saw a more challenging business environment. The significant reduction in contract renewals is unsustainable, in our opinion. We believe many of these contracts will be reinstituted in the coming quarters and years.
The market is also concerned about the impact of AI on Gartner’s Insights business. We do not see any indication that this is negatively impacting the company’s value proposition. We believe that Gartner has a vast and growing set of proprietary data, generated by hundreds of thousands of interactions with buyers, sellers, and consumers of technology. Gartner’s proprietary insights extend to corporate technological roadmaps, enabling the company to assess future trends. Gartner also delivers tangible ROI for its customers through its contract review program. AI should be an accelerant for future contracts, and Gartner’s proprietary data is well insulated from AI displacement, in our opinion. We expect growth trends to improve as public sector headwinds abate and the company’s sales force productivity improves. Gartner is repurchasing stock to take advantage of the discounted valuation.”
While we acknowledge the risk and potential of 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 IT and that has 10,000% upside potential, check out our report about this cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
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