Gartner declined following signs of slowing growth and a weaker-than-expected outlook for 2026, according to Artisan Mid Cap Value Fund's first-quarter 2026 investor letter. The fund noted that Gartner's core research business has been affected by cyclical headwinds including US government cost-cutting, trade policy uncertainty, and longer sales cycles, while some investors are concerned about the long-term impact of artificial intelligence on its business model. Despite these challenges, the fund believes the issues are primarily cyclical and that any meaningful AI disruption is likely to play out over a longer time horizon. Gartner continues to generate strong free cash flow, maintains a solid balance sheet, and returned approximately $2 billion in share repurchases to shareholders in 2025. The fund considers the stock attractively valued at current levels.
Gartner IncCore research business affected by cyclical headwinds including US government cost-cutting, trade policy uncertainty, and longer sales cycles, indicating weaker end-customer demand.