IT Stock Falls -32% With A 6-day Losing Spree On Softer Guidance
Gartner (IT) – a provider of market research, consulting, and professional conferences – hit a 6-day losing streak, with cumulative losses over this period amounting to -32%. The company’s market cap has crashed by about $5.7 Bil over the last 6 days and currently stands at $12 Bil.
The stock has YTD (year-to-date) return of 36.5% compared to 1.1% for S&P 500. This calls for a re-evaluation of the stock’s valuation to find out whether this is an opportunity or a trap.
What Triggered The Slide?
[1] Disappointing FY2026 Guidance
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- FY2026 revenue guidance of “>= $6.45 billion” and adjusted EPS of “>= $12.30” were below Wall Street expectations
- Q4 consulting revenue fell 13% year-over-year, indicating slowing demand
- Impact: Sharp stock price decline of roughly 23% on the day of the announcement, Increased investor concern over future growth prospects
Opportunity or Trap?
Below is our take on valuation.
There are only a couple of things to fear in IT stock given its overall Moderate operating performance and financial condition. Considering stock’s Low valuation we think it is Attractive (For details, see Buy or Sell IT).
But here is the real interesting point.
You are reading about this -32% move after it happened. The market has already priced in the news. To avoid the next loser before the headlines, you need predictive signals, not notifications. Our High Quality Portfolio has a risk model designed to reduce exposure to losers.
Returns vs S&P 500
The following table summarizes the return for IT stock vs. the S&P 500 index over different periods, including the current streak:
| Return Period | IT | S&P 500 |
|---|---|---|
| 1D | -20.9% | -0.8% |
| 6D (Current Streak) | -32.3% | -0.5% |
| 1M (21D) | -32.4% | 0.9% |
| 3M (63D) | -35.5% | 1.1% |
| YTD 2026 | -36.5% | 1.1% |
| 2025 | -47.9% | 16.4% |
| 2024 | 7.4% | 23.3% |
| 2023 | 34.2% | 24.2% |
Take a look at what history tells you about whether past dips like this have been buying opportunities or traps: IT Dip Buyer Analysis.
Gains and Losses Streaks: S&P 500 Constituents
There are currently 79 S&P constituents with 3 days or more of consecutive gains and 57 constituents with 3 days or more of consecutive losses.
| Consecutive Days | # of Gainers | # of Losers |
|---|---|---|
| 3D | 29 | 23 |
| 4D | 31 | 9 |
| 5D | 15 | 7 |
| 6D | 1 | 11 |
| 7D or more | 3 | 7 |
| Total >=3 D | 79 | 57 |
Key Financials for Gartner (IT)
Last 2 Fiscal Years:
| Metric | FY2023 | FY2024 |
|---|---|---|
| Revenues | $5.9 Bil | $6.3 Bil |
| Operating Income | $1.1 Bil | $1.2 Bil |
| Net Income | $882.5 Mil | $1.3 Bil |
Last 2 Fiscal Quarters:
| Metric | 2025 FQ2 | 2025 FQ3 |
|---|---|---|
| Revenues | $1.7 Bil | $1.5 Bil |
| Operating Income | $327.1 Mil | $236.3 Mil |
| Net Income | $240.8 Mil | $35.4 Mil |
The losing streak IT stock is currently on doesn’t inspire much confidence among investors. In contrast, Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 — the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.