Gartner (IT) shares dipped after its key contract value metric declined 6.2% year-over-year in the fourth quarter, signaling weakening demand in the IT services and consulting sector. The drop underscores broader challenges in enterprise spending on advisory and technology services.
- Gartner's contract value metric declined 6.2% year-over-year to $487 million in Q4 2025.
- This marks the first annual drop since 2021 and reflects weakening demand in IT consulting.
- The company's stock fell 4.7% following the report, driven by revised revenue expectations.
- Slowing enterprise spending on digital transformation and advisory services is a key factor.
- Peer firms in the IT services and consulting space may face similar challenges.
- The metric is a leading indicator for future revenue and investor confidence in the sector.
Gartner (IT) experienced a notable pullback in its stock price following the release of its latest quarterly performance data, which revealed a 6.2% year-over-year decline in contract value—a core metric used to forecast future revenue. The figure, which reflects the total value of new and renewed contracts signed during the period, fell below investor expectations and highlighted slowing momentum in enterprise technology spending. The decline marks the first year-over-year contraction in this metric since 2021 and raises concerns about the sustainability of growth in the IT consulting space. With clients increasingly prioritizing cost discipline and delayed digital transformation projects, demand for high-margin advisory services has cooled, particularly in North America and Western Europe, where Gartner has a dominant presence. The company reported a total contract value of $487 million for the quarter, down from $519 million in the same period last year. This trend follows a broader industry pattern, with other IT services firms reporting similar softness in new deal volumes and extended sales cycles. Analysts note that the metric's persistence below pre-pandemic levels suggests structural shifts in how enterprises allocate technology budgets. As a result, investor sentiment turned cautious, with Gartner’s stock closing 4.7% lower on the day. The move affected broader IT sector indices, impacting peers such as IDC and Everest Group, which are also reliant on contract-based revenue models. Market participants are now reassessing the pace of recovery in the enterprise services sector.