Gartner's Stock Takes a Hit Amidst Concerns Over AI Risks and Slowing Growth

Gartner's stock dropped 4.2% after Wolfe Research initiated coverage with a neutral stance, highlighting client budget constraints and AI risks. The company's quarterly update showed a 4.9% growth in contract value, signaling uncertainty around demand for its research and consulting services. The stock has struggled this year, with performance fading in recent months and over the past 12 months. Some analysts believe Gartner is undervalued and that its AI-powered tool, AskGartner, will boost client engagement and retention, contributing to predictable recurring revenues and potentially supporting margin expansion. However, ongoing cost-cutting and AI adoption risks could undermine analyst optimism.

Gartner's stock fell by 4.2% in the afternoon session on September 2, 2025, following Wolfe Research's initiation of coverage with a neutral "Peerperform" rating. The research firm cited several pressures on the business, including budget constraints and concerns about AI disintermediation [1]. This sentiment comes on the heels of Gartner's second-quarter report, where the company met analyst estimates but revealed a modest 4.9% year-over-year growth in total contract value [1].

Gartner's stock has been struggling this year, with a 50.9% decline since the beginning of 2025. At $237.21 per share, it is trading 57% below its 52-week high of $551.80 from November 2024 [1]. Investors who bought $1,000 worth of Gartner's shares five years ago would now be looking at an investment worth $1,808 [1].

Despite the recent stock decline, some analysts believe Gartner is undervalued. They point to the potential of the company's AI-powered tool, AskGartner, which could boost client engagement and retention, contributing to predictable recurring revenues and potentially supporting margin expansion. However, ongoing cost-cutting and AI adoption risks could undermine this optimism.

In a separate development, Aisera, a leading provider of agentic AI for the enterprise, was named a Visionary in the 2025 Gartner® Magic Quadrant™ for Artificial Intelligence Applications in IT Service Management. Aisera's platform focuses on employee self-service and purpose-built agents, aiming to optimize IT support and service management processes [2]. This recognition underscores the growing importance of AI in IT service management, potentially benefiting companies like Gartner that are at the forefront of AI-driven innovation.

DocuSign's AI-powered Intelligent Agreement Management (IAM) platform, which automates contract workflows, has also been gaining traction. The platform has driven revenue growth and margin expansion, with $801M in Q2 2026 revenue and 30% non-GAAP operating margins [3]. This success highlights the broader trend of enterprises adopting AI to enhance operational efficiency and strategic differentiation.

As Gartner navigates budget constraints and AI risks, investors should closely monitor the company's ability to adapt and innovate in the face of these challenges. The stock's recent decline may present an opportunity for investors seeking high-quality stocks at a discount, but it is crucial to weigh the potential risks and uncertainties.

References:
[1] https://www.tradingview.com/news/stockstory:b8f739977094b:0-why-gartner-it-shares-are-falling-today/
[2] https://www.globenewswire.com/news-release/2025/09/05/3145380/0/en/Aisera-Named-a-Visionary-in-2025-Gartner-Magic-Quadrant-for-AI-Applications-in-IT-Service-Management.html
[3] https://www.ainvest.com/news/docusign-ai-driven-iam-platform-catalyst-sustained-growth-margin-expansion-2509/