Gartner’s $1 Billion Share Repurchase: A Push to Revive Investor Confidence – Buyback Wednesdays

I have long found Gartner’s Magic Quadrants (MQs) – a visual representation of market leadership and innovation, both fascinating and useful. When I saw the company recently authorize a hefty $1 billion stock buyback, it raised a deeper question: in an era where AI and LLMs are redefining how we access insights, do Gartner’s legacy frameworks like the MQ still carry weight? I decided it was time to take a closer look at the research powerhouse behind the quadrants, its evolving relevance, and what this capital return move says about its future.

Gartner, Inc. (IT): $245.27

Market Cap: $19.42B

Enterprise Value: $20.09B

Key Insights

• Gartner’s Contract Value (CV – an annualized value of all subscription-related contracts at a given point in time) growth is slowing gradually. Q2 2025 showed a notable deceleration (below 5% vs 6.7% in Q1), signaling softer demand and longer sales cycles.
• Government procurement hurdles, tariff uncertainty, and the rise of LLMs are driving client cost-cutting and delaying purchasing decisions, which might have a direct impact on Gartner’s business.
• Shares trade at decade-low valuations despite solid long-term fundamentals, suggesting potential undervaluation.

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