GARTNER INC (IT): Results of Operations and Financial Condition
GARTNER INC (IT) filed an SEC Form 8-K — Results of Operations and Financial Condition. EXHIBIT 99.1 Gartner Press Release Gartner Reports Second Quarter 2026 Financial Results Diluted EPS: $4.14, +33.1%; Adjusted EPS: $4.37, +23.8% Contract Value, FX Neutral: $5.3 billion, +0.3% Sequentially, +1.7% YoY SECOND QUARTER 2026 HIGHLIGHTS • Revenues: $1.7 billion, -0.6%
How this was made
The 30-second read
Why it matters
Traders can update valuation assumptions around earnings power, cash generation, and capital return pace based on the quantified Q2 results and the stated acceleration in contract value growth.
Market read
A same-day earnings release with multiple quantified beats and a larger buyback authorization typically supports positive near-term sentiment and can shift expectations for full-year performance.
What to watch
Segment consulting revenue declined FX-neutral (-8.8%), which could temper enthusiasm even if overall adjusted metrics beat.
Gartner Reports Second Quarter 2026 Financial Results
Adjusted revenue, adjusted EBITDA excluding divested operation, adjusted EPS, operating cash flow and free cash flow increased, while FX-neutral contract value growth accelerated year over year. Results were tempered by reported revenue decline, sequentially flat GTS contract value and declining Consulting revenue and gross contribution.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| RevenuesGAAP | $1,676 million | – | (0.6)% |
| Revenues, FX neutralGAAP | $1,676 million | – | (1.6)% |
| Adjusted revenuesnon-GAAP | $1,676 million | – | 2.8% |
| Adjusted revenues, FX neutralnon-GAAP | $1,676 million | – | 1.8% |
| Net incomeGAAP | $275 million | – | 14.4% |
| Diluted EPSGAAP | $4.14 | – | 33.1% |
| Adjusted EBITDA excluding divested operationnon-GAAP | $466 million | – | 6.4% |
| Adjusted EBITDA excluding divested operation, FX neutralnon-GAAP | $466 million | – | 4.4% |
| Adjusted EPSnon-GAAP | $4.37 | – | 23.8% |
| Operating cash flowGAAP | $398 million | – | 3.8% |
| Free cash flownon-GAAP | $378 million | – | 8.9% |
| Contract Value, FX Neutralother | $5.3 billion | 0.3% | 1.7% |
| Global Technology Sales Contract Value, FX Neutralother | $4.0 billion | ~flat | 1.1% |
| Global Business Sales Contract Value, FX Neutralother | $1.3 billion | 1.2% | 3.3% |
| Insights gross contributionother | $999 million | – | 4.0% |
| Insights contribution marginother | 77.5% | – | – |
| Conferences gross contributionother | $145 million | – | 19.6% |
| Conferences contribution marginother | 59.5% | – | – |
| Consulting gross contributionother | $54 million | – | (12.6)% |
| Consulting contribution marginother | 37.9% | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| InsightsFX-neutral revenue increased 1.0%. | $1,290 million | – | 2.1% |
| ConferencesFX-neutral revenue increased 14.2%. | $244 million | – | 15.5% |
| ConsultingFX-neutral revenue declined (8.8)%. | $142 million | – | (8.8)% |
Capital returns
- Repurchased 3.6 million common shares for $547 million.
- Board of Directors increased the share repurchase authorization by $500 million in July 2026.
What drove it
- Contract Value, FX Neutral was $5.3 billion, up 0.3% sequentially and 1.7% YoY.
- Global Technology Sales Contract Value FX Neutral was $4.0 billion, ~flat sequentially and up 1.1% YoY.
- Global Business Sales Contract Value FX Neutral was $1.3 billion, up 1.2% sequentially and 3.3% YoY.
- Adjusted revenues increased 2.8% as reported and 1.8% FX neutral following the Digital Markets divestiture adjustment.
- Conferences revenue increased 15.5% and gross contribution increased 19.6%.
Concerns
- GAAP revenues declined (0.6)% as reported and (1.6)% FX neutral.
- Global Technology Sales Contract Value FX Neutral was ~flat sequentially.
- Consulting revenue declined (8.8)% and gross contribution declined (12.6)%.
- The filing identifies foreign currency fluctuations, global economic and geopolitical conditions, tariffs and trade policies, competitive pressures, customer renewals, AI developments and regulations, labor competition, debt obligations and cybersecurity incidents among risks.
What to watch
- Progress in FX-neutral Contract Value growth, including GTS CV after it was ~flat sequentially.
- Whether Consulting revenue and gross contribution stabilize after their reported declines.
- Conference revenue and contribution trends following their reported growth.
- Delivery against the updated full-year 2026 outlook for adjusted EBITDA excluding divested operation, adjusted EPS and free cash flow.
- The pace of repurchases following $547 million repurchased during the quarter and the $500 million authorization increase.
Balance sheet and cash flow
- Operating cash flow: $398 million, +3.8%.
- Free cash flow: $378 million, +8.9%.
Analysis
Gartner reported a mixed top-line presentation in the second quarter. GAAP revenue declined as reported and on an FX-neutral basis, while adjusted revenue increased on both bases. The adjusted revenue measure excludes revenue from the Digital Markets divested operation, and its growth contrasts with the reported decline. Contract Value growth accelerated to 1.7% year over year on an FX-neutral basis, with a modest sequential increase.
The Contract Value composition showed stronger Global Business Sales momentum than Global Technology Sales. GBS CV rose both sequentially and year over year, whereas GTS CV was approximately flat sequentially and increased modestly year over year. That GTS trend is a key constraint on the broader CV result because it was reported at $4.0 billion versus $1.3 billion for GBS.
Profitability and cash generation improved. Net income, diluted EPS, adjusted EBITDA excluding divested operation, adjusted EPS, operating cash flow and free cash flow each increased year over year. Segment contribution trends were also divergent: Insights and Conferences increased gross contribution, while Consulting gross contribution declined. Conferences posted the strongest reported segment revenue growth and its contribution margin was below Insights but above Consulting.
Capital allocation remained centered on repurchases, with the company repurchasing shares during the quarter and the board increasing the authorization in July 2026. Management stated that it increased full-year guidance for adjusted EBITDA excluding divested operation, adjusted EPS and free cash flow despite the stronger dollar. The provided filing text does not include the underlying outlook ranges or targets, so the magnitude and detailed assumptions of the update cannot be assessed.
Management, verbatim
Contract Value growth accelerated again. Revenues, Adjusted EBITDA excluding divested operation, Adjusted EPS, and free cash flow were ahead of expectations. We repurchased $547 million of stock in the quarter, as our capital allocation continues to create value for our shareholders. In addition, we increased our full year Adjusted EBITDA excluding divested operation, Adjusted EPS, and free cash flow guidance even with the stronger dollar.
Gene Hall, Chairman and Chief Executive Officer
Not in the filing
stated, not guessed- Detailed full-year 2026 guidance figures, ranges and assumptions were not included in the provided filing text.
- Previous-period outlook was not provided; therefore, no actual-versus-prior-guidance comparison is available.
- GAAP operating income was not reported in the provided filing text.
- Company-wide gross profit, gross margin, operating expenses, operating margin and tax rate were not reported in the provided filing text.
- Adjusted net income, adjusted EBITDA, adjusted EBITDA margin and adjusted EBITDA margin excluding divested operation were not reported in the provided filing text.
- Cash balance, total debt, net debt, dividends and dividend payments were not reported in the provided filing text.
- Prior-quarter comparisons for revenue, earnings, EPS, cash flow and segment revenue were not reported in the provided filing text.
- Prior-year segment revenue, gross contribution and contribution-margin amounts were not reported in the provided filing text.
- Detailed drivers for segment performance were not provided beyond reported revenue, FX-neutral revenue, gross contribution and contribution-margin results.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
This is an SEC Form 8-K (Item 2.02) attaching Gartner’s Q2 2026 press release and referencing an earnings supplement with the updated 2026 financial outlook.
Ticker impact
Gartner reported Q2 2026 results and updated full-year outlook, including diluted EPS $4.14 and free cash flow $378M.
Likely positive bias for the next session as traders weigh beat-ahead-of-expectations language, contract value acceleration, and increased buyback authorization.
The filing includes multiple quantified beats (EPS, adjusted EBITDA, free cash flow) and a larger buyback authorization, but it does not provide explicit new full-year guidance numbers in the scraped text.
Market effects
Signals demand resilience for IT research and advisory spend, with contract value growth accelerating.
Limited direct regional read-through; primarily US-listed company earnings.
FX-neutral metrics and global contract value breakdown suggest multinational client spending remains steady.
Counterpoint
FX-neutral strength may mask underlying reported revenue softness (-0.6% reported), so the market may discount the headline growth if dollar strength persists.
Key entities
- public_companyGartner, Inc.
Reported Q2 2026 financial results, contract value metrics, and increased share repurchase authorization.
- executiveGene Hall
CEO who stated contract value growth accelerated and that guidance was increased despite a stronger dollar.
