10:39 AM EDT, 09/09/2025 (MT Newswires) -- Gartner's ( IT ) contract value growth has moderated this year due to headwinds related to tariffs and the US Department of Government Efficiency, RBC Capital Markets said in a Monday note.

According to RBC, companies affected by tariffs are slowing down on information technology spending and Gartner ( IT ) expects further deceleration in its H2 technology contract value growth. This is pressuring margins and the company could face further strain in 2026 given timing of revenue ramp-ups, the investment firm noted.

In addition, RBC said investors are concerned over the impact of large language models' deep research capabilities on Gartner's ( IT ) competitive position in the sector.

RBC initiated coverage on Gartner ( IT ), with a sector perform rating and $263 price target.

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