Gartner Inc. (IT) shares plummeted 5.01% in intraday trading on Thursday, following the company's third-quarter earnings conference call and a target price cut by BMO Capital. The stock's sharp decline comes amid a dynamic macroeconomic environment that has prompted operational adaptations by the company.
During the earnings call, Gartner's management reported that Q3 2025 financial results were "ahead of expectations" despite challenging economic conditions. The company highlighted improvements in enterprise client retention and contract renewal rates. However, investors appear to have focused on the ongoing economic uncertainties mentioned during the call, including changes in federal government policies and evolving tariff situations.
Adding to the downward pressure, BMO Capital reduced its target price for Gartner from $272 to $254, while maintaining a Market Perform rating. This adjustment in valuation outlook likely contributed to the negative sentiment surrounding the stock. Despite Gartner's efforts to boost shareholder value through significant stock repurchases, reducing its share count by 6% year-over-year, the market reaction suggests ongoing concerns about the company's growth prospects in the current economic climate.
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