The Numbers
Gartner (NYSE: IT) reported Q4 revenue of $1.8B, up 2.2%. Full year $6.5B, up 4%, decelerating hard from 9.6% annualised over five years. Consulting revenue $134M, down 12.8% from prior year Q4. Global contract value grew 0.8% to $5.2B. Stock down 71% from November 2024 high of $552 to around $155. Market cap dropped from $45B to roughly $12B.
Forrester (NASDAQ: FORR) reported Q4 revenue $101.1M, down 6%. Full year $396.9M, down 8% from $432.5M in 2024. Contract value down 6% to $292.4M. Consulting $21.8M in Q4, down 16%. Market cap now $105M, down from $300M a year ago. They are cutting 8% of headcount and exiting strategy consulting entirely.
These two firms are proxies for enterprise B2B spend. Their customers are the VPs and CXOs deciding technology and advisory budgets. When those buyers slow down, Gartner and Forrester feel it first.
What This Means for Sales Teams
Deal cycles are longer. Gartner CEO Gene Hall said executives are responding to market forces with "increased scrutiny, elevated deal approval authority, and extended buying cycles." The company's 2026 guidance assumes no improvement in the selling environment compared to 2025.
If you are selling enterprise, plan for more stakeholders, more scrutiny, and longer timelines. This is not new, we have been hearing it since mid-2023. It is not getting better.
Consulting is getting crushed. Gartner consulting down 13%. Forrester consulting down 16% in Q4, exiting strategy consulting after bookings dropped 50% in 2025. When companies cut consulting, they are pulling back on strategic initiatives and transformation projects.
For founders: if your sale depends on the customer doing a "new initiative" or "transformation project," your deal cycle just got harder. The companies buying have urgent, specific, quantifiable pain.
AI is compressing value. Both firms produced thousands of AI research documents in 2025, but AI is also why their core business is under pressure. Clients have access to AI tools that make six-figure research subscriptions harder to justify.
Forrester CEO George Colony argues they have "proprietary data, original ideas, and the ability for clients to talk to the people who created the data." The market is not buying it yet. Market cap of $105M for a company doing $400M in revenue says everything.
One bright spot: events. Gartner's conferences segment up 13.9% in Q4 with 51% margins. People still want to meet in person. Forrester's events business collapsed 29%, they are overhauling the format entirely.
Worth noting: Gartner expanded its sales team in Q1 2025 while managing costs, positioning ahead of peers despite the slowdown. When the market tightens, companies with strong sales execution pull ahead.