Here's Why Gartner (IT) Traded Down in Q3

By Soumya Eswaran | October 22, 2025, 9:20 AM

Conestoga Capital Advisors, an asset management company, released its third-quarter 2025 investor letter. A copy of the letter can be downloaded here. Equity markets continued their momentum that began in early April, reaching new all-time highs in the third quarter. The Mid Cap Composite returned -3.2% net-of-fees in the third quarter, compared to a 2.8% gain for the Russell Midcap Growth Index. The strategy’s focus on high-quality, profitable companies struggled to keep pace in the quarter amid risk-on dominance. Please check the top 5 holdings of the fund for a better understanding of their best picks for 2025.

In its third-quarter 2025 investor letter, Conestoga Capital Advisors highlighted stocks such as Gartner, Inc. (NYSE:IT). Established in 1979, Gartner, Inc. (NYSE:IT) is a research and advisory company that operates through research, conferences, and consulting segments. The one-month return of Gartner, Inc. (NYSE:IT) was 0.07%, and its shares lost 50.71% of their value over the last 52 weeks. On October 21, 2025, Gartner, Inc. (NYSE:IT) stock closed at $258.17 per share, with a market capitalization of $19.553 billion.

Conestoga Capital Advisors stated the following regarding Gartner, Inc. (NYSE:IT) in its third quarter 2025 investor letter:

"Gartner, Inc. (NYSE:IT) is a leading research and advisory firm that provides insights, consulting, and events to help business and technology leaders make informed strategic decisions. Shares have lagged as contract value for its IT research services continues to be weak. In addition, there is a growing narrative that the company’s business model is under threat from AI deep research tools, an argument that is difficult to disprove until contract value reaccelerates."

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Gartner, Inc. (NYSE:IT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 45 hedge fund portfolios held Gartner, Inc. (NYSE:IT) at the end of the second quarter, compared to 51 in the previous quarter. While we acknowledge the potential of Gartner, Inc. (NYSE:IT) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Gartner, Inc. (NYSE:IT) and shared Polen Focus Growth Strategy's views on the company. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.

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