Gartner, Inc. Class Action Lawsuit – IT

According to the complaint, throughout the class period, defendants provided overwhelmingly positive statements to investors while, at the same time, disseminating materially false and misleading statements and/or concealing material adverse facts concerning the true state of Gartner’s growth rates; notably, that it was not truly equipped to handle ongoing challenges in its industry to either meet consulting revenue targets or to increase or even maintain its expected contract value (“CV”) growth rate; Gartner’s repeated claims of being able to achieve 12-16% CV growth rates in a “normal” macroeconomic environment proved to be unrealistic. On August 5, 2025, during Gartner’s earnings call following a same day press release announcing its second quarter fiscal 2025 earnings, defendants announced a surprising decline in their CV growth rate, both when considering contracts with the federal government and when excluding them. Specifically, defendant’s overall CV growth declined from 7% the previous quarter to only 5%; mirroring, the ex-federal CV growth declined from 8% the previous quarter to merely 6%. Following this news, the price of Gartner’s common stock declined dramatically. From a closing market price of $336.71 per share on August 4, 2025, Gartner’s stock price fell to $243.93 per share on August 5, 2025, a decline of about 27.55% in the span of just a single day. On February 3, 2026, Gartner again announced a significant decline in its CV growth rate, which had faltered another 2% both including and excluding federal contracts, and for the first time disclosed a significant shortfall of its Consulting segment’s performance against the Company’s internal projections. Following this news, the price of Gartner’s common stock declined dramatically. From a closing market price of $202.40 per share on February 2, 2026, Gartner’s stock price fell to $160.16 per share on February 3, 2026, a decline of nearly 20.87% in the span of one day.