Gartner (IT) stock drops 27% as weak guidance overshadows earnings

Revenue rose 5.7% to $1.69B and EPS beat at $3.53 vs. $3.38 est., but full-year revenue was cut due to soft U.S. federal renewals. Deferred revenue fell 2.6%, and contract value growth slowed to 4.9%. Core Insights segment decelerated to 4.2% growth. Despite strong cash flow and $437M in buybacks, investors reacted to the lowered growth outlook and lack of traction data for its new AI tool, AskGartner.