Gartner Sees Price Targets Slashed to $170 and $188 as Shares Plunge 27%
Truist Securities cut Gartner’s price target to $170 from $300 after weaker-than-expected Q4 contract value and muted 2026 guidance, while BMO Capital lowered its target to $188 from $258. Shares have tumbled 27.47% over the past week and 71.55% year-over-year despite a Q4 EPS of $11.54 and P/E of 13.73.
1. Analyst Price Target Reductions
On February 6, Truist Securities cut Gartner’s price target to $170 from $300 while maintaining a Buy rating, citing weaker fourth-quarter contract value results and muted 2026 guidance. That same day, BMO Capital trimmed its target to $188 from $258 with a Market Perform rating, highlighting federal government customer churn and a difficult sales environment.
2. Q4 Financial Performance
Gartner delivered a margin-driven earnings beat in Q4, reporting EPS of $11.54 and a P/E ratio of 13.73, supported by an aggressive share repurchase program. Despite these results, shares plunged 27.47% over the past week and have fallen 71.55% year-over-year as growth concerns pressure valuation.
3. Growth Outlook and Challenges
Management outlined a four-dimensional strategy to reinvigorate contract value growth, but full benefits may take a couple of years to materialize. The 2026 guidance was described as at least in line with company targets but below consensus expectations, with acceleration in contract value growth anticipated later in the year.