Why Gartner Stock Swooned in the First Half of 2026

Gartner (IT) fell nearly 49% in the first half of 2026 as investors fled the research and advisory firm on fears that AI models are replacing demand for its core services. The stock sold off despite the company beating earnings estimates.

The damage stems from anemic growth metrics across the board. Global contract value rose less than 1% year-over-year, signaling stalled momentum in client spending. Revenue declined 1.5% in Q1 2026 even as contract value showed modest growth, pointing to deteriorating conversion and retention. Management's full-year revenue guidance came in below analyst consensus, cementing concerns that Gartner's traditional business model faces structural pressure.

The company also divested its digital market division at a discounted price during the period, further spooking investors already worried about AI-driven disruption. The sale suggested management may be struggling to maintain unit valuations in a rapidly shifting competitive landscape.