Gartner, Inc.

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Somewhat Bearish -45

Weak Subscription Revenue Growth Pressured Gartner (IT) in Q1 - Insider Monkey

AI-generated analysis

πŸ“‰ Madison Large Cap Fund listed Gartner, Inc. (NYSE: IT) as one of its bottom five detractors for the first quarter of 2026.

πŸ’° Gartner reported Q1 revenue of $1.5 billion, showing a 2% year-over-year increase on a reported basis but a 1% decline on an FX-neutral basis.

πŸ€– Investor concerns regarding potential AI disruption risks contributed to downward pressure on Gartner's stock price following the earnings release.

πŸ“‰ Hedge fund interest in Gartner declined significantly, with portfolio holdings dropping from 50 to 36 between the previous quarter and the end of Q1 2026.

πŸ” The Madison Large Cap Fund believes that while Gartner has made product enhancements, results will only steadily improve in the coming year.

πŸ“Š Gartner shares closed at $148.17 on June 12, 2026, reflecting a -4.67% one-month return and a 63.78% loss over the past 52 weeks.

πŸ’‘ The investment advisor views other AI stocks as having greater promise for delivering higher returns within a shorter timeframe than Gartner.

Bullish Signals
  • Gartner achieved a reported revenue increase of 2% year-over-year in Q1 2026, demonstrating some resilience despite FX headwinds.
  • The company has implemented several enhancements to its core product and analyst team intended to improve future results.
  • Madison Large Cap Fund outperformed the broader S&P 500 by a margin of roughly 1.6 percentage points during the quarter.
Risk Factors
  • Gartner was identified as a bottom-five detractor for the Madison Large Cap Fund due to disappointing subscription revenue growth.
  • Investor concerns about AI disruption risks have negatively impacted sentiment and stock performance for Gartner.
  • Hedge fund portfolios holding Gartner decreased from 50 to 36 in Q1 2026, indicating a reduction in institutional interest.
  • Revenue declined by 1% on an FX-neutral basis, suggesting underlying business weakness beyond currency fluctuations.
  • The investment advisor explicitly stated that other AI stocks hold greater promise for delivering higher returns than Gartner.
Full Analysis
Madison Investments released its first-quarter 2026 investor letter for the Madison Large Cap Fund, which declined 2.7% despite outperforming the S&P 500's -4.33% return. The fund attributed its relative underperformance to a market shift toward physical economy stocks and rising commodity prices driven by geopolitical conflicts, sectors in which the fund does not invest. The letter specifically highlighted Gartner, Inc. (NYSE: IT) as one of the bottom five detractors for the quarter. Shares were pressured due to disappointing subscription revenue growth, which fueled investor concerns regarding potential disruption risks from artificial intelligence. While the company has made enhancements to its core product and analyst team, management believes these improvements will only steadily reflect in results in the coming year. Gartner reported Q1 2026 revenue of $1.5 billion, representing a 2% year-over-year increase on a reported basis but a 1% decline on an FX-neutral basis. Hedge fund holdings of Gartner decreased from 50 portfolios in the previous quarter to 36 at the end of the first quarter of 2026. The investment advisor maintains conviction that other AI stocks offer greater promise for delivering higher returns within a shorter timeframe compared to Gartner.