What Makes Gartner (IT) an Investment Bet?

Madison Investments, an investment advisor, released its “Madison Large Cap Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the second quarter, the fund (Class Y) increased 3.1%, compared to a 10.9% gain for the S&P 500 index. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second quarter 2025 investor letter, Madison Large Cap Fund 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 -11.39%, and its shares lost 25.14% of their value over the last 52 weeks. On July 21, 2025, Gartner, Inc. (NYSE:IT) stock closed at $353.10 per share, with a market capitalization of $27.177 billion.

Madison Large Cap Fund stated the following regarding Gartner, Inc. (NYSE:IT) in its second quarter 2025 investor letter:

“We initiated positions in Airbnb, CDW Corporation and Gartner, Inc. (NYSE:IT) and sold Berkshire Hathaway. The final new investment during the second quarter was in Gartner, a global leader in technology research. The company has an attractive business model characterized by recurring revenues, strong pricing power, negative working capital and high return on invested capital. The firm maintains a strong competitive advantage from its renowned brand as well as its unmatched scale and resulting ‘information network.’ We believe the company’s long-term growth outlook is excellent due to the increasing need for sophisticated technology research, coupled with Gartner’s small share of its addressable market. The stock has underperformed recently on concerns over slowing subscription growth, which we believe will prove to be short-lived. The currently depressed valuation was too attractive to pass up.”

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Gartner, Inc. (NYSE:IT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 51 hedge fund portfolios held Gartner, Inc. (NYSE:IT) at the end of the first quarter which was 57 in the previous quarter. Gartner, Inc.’s (NYSE:IT) first quarter revenue was $1.5billion, representing an 4% year-over-year increase. 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 Baron Small Cap Fund’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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