TCW Exits Gartner (IT) Due to Disappointing Performance
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2h ago
0mins
Source: Yahoo Finance
- Fund Performance Review: TCW Concentrated Large Cap Growth Fund reported a +4.11% return in Q3 2025, lagging behind the Russell 1000 Growth Index's +10.51%, indicating relative underperformance amid optimism around AI investments.
- Gartner Performance Analysis: Gartner reported Q3 revenue of $1.5 billion, reflecting a 3% year-over-year increase; however, management lowered forward guidance, expecting contract value growth to decelerate from mid-single-digit to low single-digit growth, indicating weakening market demand.
- Market Environment Impact: Approximately 35% to 40% of Gartner's research contract value is in tariff-impacted industries that are implementing cost-cutting measures, leading to delayed sales cycles and posing pressure on the company's future growth.
- Investment Strategy Adjustment: In light of the rapid market disruption caused by AI, TCW decided to completely exit Gartner stock, opting to focus on other AI stocks that present greater upside potential and lower downside risk.
IT
$251.18+Infinity%1D
Analyst Views on IT
Wall Street analysts forecast IT stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for IT is 274.57 USD with a low forecast of 218.00 USD and a high forecast of 390.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
10 Analyst Rating
3 Buy
6 Hold
1 Sell
Hold
Current: 250.380
Low
218.00
Averages
274.57
High
390.00
Current: 250.380
Low
218.00
Averages
274.57
High
390.00
About IT
Gartner, Inc. delivers actionable, objective insight to executives and their teams. It operates through three segments: Research, Conferences and Consulting. The Research segment delivers independent, objective insight to leaders across an enterprise through subscription services that include on-demand access to published research content, data and benchmarks, and direct access to a network of research experts located around the globe. The Gartner Conferences segment is designed for information technology (IT) and business executives as well as decision-makers looking to adapt and evolve their organizations through disruption and uncertainty, navigate risks and prioritize investments. The Consulting segment serves chief information officers and other senior executives to optimize technology investments and drive business impact. The Company also provides solutions for a range of IT-related priorities, including IT cost optimization, digital transformation, and IT sourcing optimization.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
