Overview#

Goldman Sachs has recently downgraded Gartner's stock rating from Buy to Neutral. The firm also reduced its price target for the stock from $220 to $171, highlighting concerns about the impact of artificial intelligence (AI) on Gartner’s core research business.

AI Risks to Gartner#

Analyst George Tong pointed out that Gartner’s research operations face greater risks from AI compared to other companies that rely heavily on data, benchmarks, or regulatory frameworks. In an assessment of AI resilience, Gartner received a score of 5.7, which is lower than many of its industry peers. Goldman Sachs noted that AI technology can replicate significant portions of Gartner’s research functions, potentially diminishing the value of its written content. However, the firm acknowledged that Gartner’s relationship-driven insights still provide a unique value.

Stock Performance and Valuation#

Since mid-2025, Gartner's stock has dropped about 56%, and its price-to-earnings (P/E) ratio currently stands at 15.6, well below historical averages. Despite this decline, some data suggests that the stock may be undervalued at its current price. Goldman Sachs believes that the downgrade reflects Gartner's structural challenges related to AI rather than an excessive market discount.

Revised Growth Estimates#

Goldman Sachs has also lowered its growth forecast for Gartner’s Insights contract value for 2028 from 10.5% to 7%. The firm no longer anticipates that Gartner will meet its medium-term growth target of 12% to 16%. Additionally, the expected P/E multiple for the next twelve months has been reduced from 14 times to 11 times.

Analyst Perspectives#

In the broader context, several analysts have adjusted their price targets for Gartner. UBS has lowered its target to $166 while maintaining a Neutral rating, and BMO Capital has set a target at $188, citing Gartner’s resilience in the face of AI challenges. Conversely, Truist Securities has significantly cut its target to $170, and RBC Capital has decreased its target to $175, reflecting ongoing concerns about contract value growth and retention rates.