Gartner Stock Plummets 27.6% in a Single Day – What Went Wrong?

Gartner just took a nosedive that would make even crypto traders wince. The stock cratered 27.6% in one brutal session—proof that even 'established' analysts aren't immune to market tantrums.

Wall Street's favorite research firm got caught with its spreadsheets down. No fluffy corporate jargon here—just a straight-up bloodbath for shareholders.

Meanwhile, decentralized analytics protocols are quietly eating their lunch. But hey, at least Gartner can still charge $50K for a report telling you what Twitter already knows.

Gartner beats on sales and EPS

The company's top- and bottom-line numbers were solid, posting earnings per share (EPS) of $3.11 on $1.7 billion in sales, and it repurchased $274 million worth of company stock. However, investors were disappointed in the pace of its contract growth and what it means for the future.

Image source: Getty Images.

The company's total contract value ROSE just 4.9% year over year, showing a slowdown in its growth trajectory. In the age of artificial intelligence (AI), investors expect robust growth consistently, and deceleration is punished.

Gartner rolls out an AI tool

Hoping to reverse the trend, the company announced its new "AskGartner" tool, an AI-powered research aid designed to empower clients and reduce friction. It could be too little too late.

It is a tough time for the company as it competes with AI-native companies and internal tools that can be built using AI provided by OpenAI or Anthropic.

While the company's stock trades at one of its lowest multiples in decades, it's for good reason. Trends in AI and the broader market are severely eating Gartner's very model.