Gartner Shares Drop 0.09% with 167th Trading Volume Amid AI Push and Earnings Beat

Gartner (NYSE:IT) closed on August 6, 2025, with a 0.09% decline, trading at a volume of $0.63 billion, a 42.44% drop from the previous day. The stock ranked 167th in trading activity among listed equities. The company reported second-quarter 2025 earnings with revenue of $1.69 billion, a 5.7% year-over-year increase, and net income of $240.8 million, up 4.9% from the same period in 2024. Earnings per share (EPS) reached $3.12, exceeding expectations by 2.2%, while profit margins remained stable at 14%.

During the earnings call, CEO Gene Hall emphasized AI as a pivotal growth driver, positioning Gartner as a key partner for clients navigating AI integration, cybersecurity, and digital transformation. The company also highlighted its AI-powered tool, AskGartner, designed to deliver rapid, tailored insights to clients. Despite these advancements, Q2 performance faced challenges, including reduced CEO confidence, cost-cutting measures among clients, and disruptions from U.S. federal government initiatives under the DOGE framework. Tariff-related uncertainties further pressured purchasing decisions, with Hall noting a surge in cost-optimization demands from clients across industries.

Financially, Gartner reported $443 million in EBITDA, a 7% year-over-year increase, and $347 million in free cash flow. The company’s adjusted EPS of $3.53 outperformed estimates, reflecting disciplined expense management and share repurchase activity. Safian, CFO, outlined plans to return to double-digit contract value (CV) growth by addressing headwinds in federal government contracts, tariff-impacted industries, and operational efficiency. The stock’s recent 30% decline over a week reflects market sensitivity to macroeconomic pressures and sector-specific challenges.

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