Aug 5 (Reuters) - Gartner ( IT ) cut its annual revenue

forecast on Tuesday, anticipating slower demand for its biggest

research unit as businesses dialed back on spending in an

uncertain economy.

Shares of the company fell 11% in premarket trading.

Gartner ( IT ) now expects $100 million less from its insights unit

in 2025, which led to the company to now forecast total revenue

of at least $6.46 billion this year.

The company, however, expects annual profit of at least

$11.75 per share, up 5 cents from its prior forecast, due to

favorable foreign exchange rates.

Businesses have been streamlining costs to counter ongoing

inflation and subdued customer spending, leading to softer

demand for Gartner's ( IT ) services.

Analysts have said that advancement in automation and AI,

which enables clients to improve performance with tools

developed in-house, has created uncertainty for consulting

services firms like Gartner ( IT ).

However, the insights segment, which accounts for more than

half of total sales, reported a 4.3% rise in revenue in the

second quarter.

This boosted the company's total revenue to $1.69

billion for the quarter ended June 30, compared with analysts'

average estimate of $1.67 billion, according to data compiled by

LSEG.

Gartner's ( IT ) consulting segment recorded a nearly 9% rise

in quarterly revenue to $155.6 million.

On an adjusted basis, the company earned $3.53 per

share, beating estimates of $3.30.