Gartner (IT) Slid as Its Key Contract Value Metric Fell Short

TimesSquare Capital Management, an equity investment management company, released its “U.S. Focus Growth Strategy” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the third quarter, all the major asset classes posted positive returns except fixed income assets outside the US. The strategy returned 4.00% (gross) and 3.78% (net) compared to a 2.78% return for the Russell Midcap Growth Index. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, TimesSquare Capital U.S. Focus Growth Strategy 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 3.09%, and its shares lost 53.46% of their value over the last 52 weeks. On December 12, 2025, Gartner, Inc. (NYSE:IT) stock closed at $233.89 per share, with a market capitalization of $17.714 billion.

TimesSquare Capital U.S. Focus Growth Strategy stated the following regarding Gartner, Inc. (NYSE:IT) in its third quarter 2025 investor letter:

"Among the wide variety of Information Technology companies, we prefer critical system providers, specialized component designers, systems that improve productivity or efficiency for their clients, and others that are growing their shares of corporate IT budgets. Gartner, Inc. (NYSE:IT) is an information technology research and advisory company. Despite reporting upside to estimates on revenues and earnings, its key contract value metric fell short. That resulted in a -18% tumble to its shares. We decided to liquidate the position and redeploy the proceeds into higher conviction names."

Gartner, Inc. (NYSE:IT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 42 hedge fund portfolios held Gartner, Inc. (NYSE:IT) at the end of the third quarter, which was 45 in the previous quarter. In the third quarter of 2025, Gartner, Inc. (NYSE:IT) reported revenue of $1.5 billion, reflecting as increase of 3% year-over-year as reported and 1% FX neutral. 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 Carillon Scout Mid Cap Fund'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.