Shares of Gartner (NYSE: IT) plummeted 27.98% in intraday trading on Tuesday, following the release of the company's second-quarter results and revised 2025 guidance. Despite beating analyst expectations for Q2, the technology research firm's outlook for the rest of the year fell significantly short of market projections, triggering a massive sell-off.

Gartner reported adjusted earnings per share of $3.53 for Q2, surpassing the analyst consensus estimate of $3.31. Revenue came in at $1.70 billion, also beating the expected $1.68 billion. However, the company's guidance for 2025 overshadowed these positive results. Gartner now projects adjusted earnings per share of at least $11.75 and total revenues of at least $6,455 million for the full year, falling short of analyst expectations of $12.47 per share and revenues of $6.58 billion.

The primary driver behind the guidance cut appears to be slowing demand for Gartner's research services. The company now expects $100 million less from its insights unit in 2025, leading to the reduced revenue forecast. This development has raised concerns among investors about the company's growth prospects in an uncertain economic environment. The sharp stock decline reflects the market's disappointment with Gartner's outlook and suggests that investors are reassessing the company's valuation in light of the expected slowdown in its core business.