PomegraGartner Stock Falls 13% Despite Earnings Beat, Raised Guidance
Why is Gartner stock down today?
Gartner (IT) stock fell 13% to $204.22 on Tuesday despite an earnings beat, as its key sales measure grew only 2.5% and management said faster growth is unlikely.
Key numbers
| Stock close (Nov 3) | $204.22-13.2% vs $235.26 |
|---|---|
| Adjusted EPS | $3.59+30.1% YoY; est. $2.84 |
| Revenue | $1.505B-1.3% YoY |
| Contract value | $5.3B+2.5% YoY |
| 2026 adjusted EPS outlook | ≥$14.65Raised |
What happened
Gartner (IT) stock fell 13% to $204.22 on Tuesday despite an earnings beat, as its key sales measure grew only 2.5% and management said faster growth is unlikely. Profit per share (adjusted EPS) was $3.59, well above the $2.84 analysts expected. Gartner also raised its full-year profit outlook (guidance) to at least $14.65 a share. But contract value, the money customers have committed to pay for its research, grew only 2.5% to $5.3 billion. The CFO said reaching 4% growth by year-end is unlikely.
Why it matters
Gartner shows that beating forecasts is not always enough to lift a stock. Investors focused on contract value, which hints at how much future revenue is lined up, and it grew just 2.5%. Profit rose 30% while revenue slipped 1.3%, so the gains did not come from faster sales. The stock had also climbed 27% in the prior month, which raised expectations.
Who this affects
- MarketmixedLow impact
- Investors punished slow growth even when profits beat forecasts.
- CompanybearishHigh impact
- Gartner shareholders lost about 13% in a single day.
- CompetitorsneutralLow impact
- Forrester raised its outlook last week; rivals now compared.
- IndustrymixedLow impact
- Research firms face pressure to show faster subscription growth.
Gartner vs Forrester Research, Accenture
How we got here
Forrester beats Q3 estimates and raises 2026 EPS outlook; shares rise after hours.
Gartner reports Q3 adjusted EPS of $3.59 versus $2.84 expected and raises guidance.
Shares open nearly 20% lower and close down about 13%.
What to watch
- Whether contract value growth keeps rising from 2.5% toward 4%.Q4 2026
- Gartner's fourth-quarter EBITDA, guided to at least $390 million.Q4 2026
Educational content only. Not investment advice.
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