ICI US Stocks | 2025-08-06 (Wed) – Gartner (IT) Plunges 28%: Buying Opportunity or Danger Ahead?

Author:Nalan Snowmin

The efficiency measures in government departments have made it more difficult for clients to purchase or renew Gartner products, particularly affecting its U.S. federal government business.

The tariff policy has led many companies to implement strong cost-saving measures, even though they are not directly affected by the tariffs.This has raised purchasing decisions to higher levels, such as CFOs or CEOs, thereby extending the sales cycle.

Industries affected by tariffs account for about 35–40% of Gartner’s contract value, and this headwind persisted in the Q2.

Gartner (IT) has dropped 50% so far this year, marking its first annual decline since 2009. Investors are now debating whether this represents a rare buying opportunity or a warning sign.

Financial information review

Currently, IT has a market capitalization of $18.73 billion, with a share price of $243.35.

IT’s operating profit reached $1.12 billion in 2022 and has shown little to no growth over the following three years.

In the Q1 of this year, operating profit grew by only 1.39% YOY.

If we divide the market capitalization of $18.75 billion by the operating profit of $1.12 billion, we get a ratio of around 16.74. This indicates that, excluding non-operating income and taxes, it would take about 16.74 years for the current market cap to be recouped through operating profit.