Gartner Reports Third Quarter 2026 Financial Results
GARTNER INC (IT) filed an SEC Form 8-K — Results of Operations and Financial Condition. EXHIBIT 99.1 Gartner Press Release Gartner Reports Third Quarter 2026 Financial Results Diluted EPS: $3.35, +613%; Adjusted EPS: $3.59, +30.1% Contract Value, FX Neutral: $5.3 billion, +1.1% Sequentially, +2.5% YoY THIRD QUARTER 2026 HIGHLIGHTS • Revenues: $1.5 billion, -1.3% as
How this was made
The 30-second read
Why it matters
The earnings beat and updated guidance suggest stronger demand for Gartner's services, potentially lifting peer valuations.
Market read
Gartner's earnings and guidance update are material for investors in the tech advisory space and may affect related stocks.
What to watch
Potential headwinds from AI regulation and competitive pressures could temper growth.
Gartner Reports Third Quarter 2026 Financial Results
Adjusted revenues, Adjusted EBITDA excluding divested operation, Adjusted EPS, free cash flow and contract value all increased, while GAAP revenue declined because the prior-year period included the Digital Markets divested operation. GAAP net income increased sharply, with the prior-year period including goodwill and other asset impairments.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| GAAP revenuesGAAP | $1.50B | – | (1.3) % |
| GAAP revenues, FX neutralGAAP | $1.50B | – | (1.1) % |
| Adjusted revenuesnon-GAAP | $1.50B | – | 2.4 % |
| Adjusted revenues, FX neutralnon-GAAP | $1.50B | – | 2.6 % |
| GAAP net incomeGAAP | $214M | – | 506.4 % |
| GAAP diluted EPSGAAP | $ 3.35 | – | 612.8 % |
| GAAP basic EPSGAAP | $ 3.36 | – | – |
| Operating incomeGAAP | 281.1 | – | – |
| Income before income taxesGAAP | 255.7 | – | – |
| Provision for income taxesGAAP | 41.3 | – | – |
| Interest expense, netGAAP | (23.6) | – | – |
| Other expense, netGAAP | (1.8) | – | – |
| Cost of services and product developmentGAAP | 433.2 | – | – |
| Selling, general and administrativeGAAP | 746.8 | – | – |
| DepreciationGAAP | 25.1 | – | – |
| Amortization of intangiblesGAAP | 20.0 | – | – |
| Goodwill impairmentGAAP | — | – | – |
| Gain from sale of divested operationGAAP | (1.4) | – | – |
| Total costs and expensesGAAP | 1,223.7 | – | – |
| Adjusted EBITDA excluding divested operationnon-GAAP | $364M | – | 7.5 % |
| Adjusted EBITDA excluding divested operation, FX neutralnon-GAAP | $364M | – | 7.4 % |
| Adjusted EBITDAnon-GAAP | $364M | – | – |
| Adjusted net incomenon-GAAP | $230M | – | – |
| Adjusted EPSnon-GAAP | $ 3.59 | – | 30.1 % |
| Operating cash flowGAAP | $294M | – | (1.4) % |
| Free cash flownon-GAAP | $275M | – | 2.2 % |
| Cash paid for capital expendituresGAAP | (19) | – | – |
| Global Technology Sales Contract Value FX Neutral (GTS CV)other | $4B | +0.8% Sequentially | +2.1% YoY |
| Global Business Sales Contract Value FX Neutral (GBS CV)other | $1.3B | +1.8% Sequentially | +3.7% YoY |
| Contract Value, FX Neutralother | $5.3B | +1.1% Sequentially | +2.5% YoY |
| Weighted average diluted shares outstandingGAAP | 63.9 | – | – |
| Weighted average basic shares outstandingGAAP | 63.8 | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| InsightsFX-neutral revenue increased 1.8 %; gross contribution was $ 1,003 and contribution margin was 77.6 %. | $1.29B | – | 1.7 % |
| ConferencesFX-neutral revenue increased 15.3 %; gross contribution was $ 30 and contribution margin was 34.9 %. | $ 86 | – | 15.4 % |
| ConsultingFX-neutral revenue increased 3.0 %; gross contribution was $ 43 and contribution margin was 33.8 %. | $126M | – | 2.3 % |
Amounts quoted below without a unit are in millions, as in the filing’s tables. Per-share figures are as printed.
Capital returns
- Repurchased 0.9 million common shares for $138 million.
- Repurchased $1.7 billion of stock over the last four quarters.
What drove it
- Adjusted revenues increased 2.4 % as reported and 2.6 % FX neutral after excluding revenues from the Digital Markets divested operation.
- Contract Value, FX Neutral was $5.3 billion, with GTS CV and GBS CV both increasing sequentially and year over year.
- Conferences revenue increased 15.4 %, the largest reported growth rate among the operating segments.
- Adjusted EBITDA excluding divested operation increased 7.5 % as reported and Adjusted EPS increased 30.1 %.
- The prior-year period included $150M of goodwill impairment related to Digital Markets, in addition to impairment loss for lease related assets, net of a reduction in lease liabilities.
Concerns
- GAAP revenues declined (1.3) % as reported and (1.1) % FX neutral.
- Operating cash flow declined (1.4) %.
- GTS CV grew +2.1% YoY, below GBS CV growth of +3.7% YoY.
- Interest expense, net was (23.6), compared with (16.3).
What to watch
- Contract Value growth, including GTS CV and GBS CV progression.
- Whether adjusted revenue growth and segment contribution growth continue after the Digital Markets divestiture.
- Conference revenue growth and contribution margin.
- Operating cash flow and free cash flow conversion.
- Execution against the updated full-year 2026 outlook, for which numerical targets were not included in the filing text.
Balance sheet and cash flow
- GAAP cash provided by operating activities was $ 294, compared with $ 299.
- Cash paid for capital expenditures was (19), compared with (29).
- Free Cash Flow was $ 275, compared with $ 269.
Analysis
Gartner reported a mixed GAAP revenue comparison but solid underlying operating performance. GAAP revenues were $ 1,505 versus $ 1,524, while adjusted revenues, which exclude Digital Markets divested operation revenue, were $ 1,505 versus $ 1,469. The reconciliation identifies (55) of divested-operation revenue in the prior-year period. Contract Value, FX Neutral was $5.3 billion, up +1.1% Sequentially and +2.5% YoY, with growth in both GTS CV and GBS CV.
Segment performance was led by Conferences, where revenue increased 15.4 % and gross contribution increased 9.8 %. Insights remained the largest segment at $ 1,292 of revenue, up 1.7 %, with a 77.6 % contribution margin. Consulting revenue increased 2.3 % and its gross contribution increased 21.3 %, while its contribution margin was 33.8 %.
Profitability improved substantially on both GAAP and adjusted measures. Operating income was 281.1 compared with 86.4, and GAAP net income was $ 214 compared with $ 35. The prior-year results included 150.0 of goodwill impairment, while the current quarter recorded a (1.4) gain from sale of divested operation. Adjusted EBITDA excluding divested operation rose to $ 364 from $ 339, and Adjusted EPS increased to $ 3.59 from $ 2.76.
Cash generation was stable despite lower operating cash flow. Operating cash flow was $ 294 compared with $ 299, while free cash flow increased to $ 275 from $ 269 as cash paid for capital expenditures declined to (19) from (29). The company repurchased 0.9 million common shares for $138 million and stated that it repurchased $1.7 billion of stock over the last four quarters.
Management stated that it increased full-year Revenues, Adjusted EBITDA excluding divested operation, Adjusted EPS and free cash flow guidance, but the filing text does not provide the revised numerical targets. The key disclosed operating indicators to monitor are the pace of Contract Value growth, the durability of adjusted revenue growth following the divestiture, segment contribution trends, and conversion of earnings into operating and free cash flow.
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 $1.7 billion of stock over the last four quarters, as our capital allocation continues to create value for our shareholders. In addition, we increased our full year Revenues, Adjusted EBITDA excluding divested operation, Adjusted EPS, and free cash flow guidance.
Gene Hall, Chairman and Chief Executive Officer
Not in the filing
stated, not guessed- Numerical full-year 2026 guidance for Revenues, Adjusted EBITDA excluding divested operation, Adjusted EPS and free cash flow.
- Previous-release outlook and numerical prior guidance comparisons.
- GAAP gross margin and prior-year GAAP gross margin.
- Adjusted EBITDA margin and Adjusted EBITDA margin excluding divested operation.
- Cash balance.
- Debt balance.
- Dividend information.
- Prior-quarter revenue, earnings, cash flow and segment comparisons.
- Numerical operating-expense and tax-rate guidance.
Written by an AI language model 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 checked against the filing text, and a metric whose value, prior period and change do not add up is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. 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
Gartner is a leading research and advisory firm that provides insights to technology and business leaders.
Ticker impact
Gartner reported Q3 2026 results and updated its full-year 2026 guidance.
likely upward pressure as the market prices in the updated guidance
The company posted higher adjusted EPS and updated full-year guidance, which typically supports a price rally.
Market effects
Positive outlook may boost the broader technology research and advisory sector.
U.S. market may see modest gains in related software and services stocks.
Guidance lift could influence global investors tracking enterprise software demand.
Counterpoint
If the guidance raise is already priced in, the stock could face short-term profit taking.
Key entities
- ExecutiveGene Hall
Chairman and CEO of Gartner who commented on the results.
