Shares of Gartner Inc. (IT) plunged 5.01% in intraday trading on Thursday, following the company's third-quarter earnings call and a subsequent price target cut by BMO Capital. The sharp decline comes despite Gartner reporting financial results that were "ahead of expectations" for the quarter.
During the earnings call, Gartner's management highlighted improvements in enterprise client retention and contract renewal rates. CEO Gene Hall noted, "Our Q3 financial results were ahead of expectations. The macroeconomic environment remains dynamic with DOGE, changes in the federal government and evolving tariff policies. We made operational adaptations that are starting to yield results." The company also reported significant share repurchases, buying back more than $1 billion of stock in the quarter and reducing its share count by 6% year-over-year.
However, investor sentiment appears to have been negatively impacted by BMO Capital's decision to lower its price target for Gartner from $272 to $254. This adjustment, coupled with ongoing concerns about the "dynamic macroeconomic environment" mentioned in the earnings call, likely contributed to the stock's significant drop. The market's reaction suggests that investors may be focusing on potential headwinds despite the company's reported improvements in key metrics.
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